Firm wants $1800 as Plan need to be restated in entireity

[Guest lund]

The DB plan service company is asking $1800 saying "IRS regulations now require that your plan be restated in its entireity"

This is above and beyond their yearly servicing fee and is couple hundred more than what I pay to them every year.

Is this a legit need or am I being taken for a ride?

Thanks

Also, anyone can refer another company in Phoenix AZ area that handles DB plans? I think I may be done with these guys.

[Bill Presson]

The DB plan service company is asking $1800 saying "IRS regulations now require that your plan be restated in its entireity"

This is above and beyond their yearly servicing fee and is couple hundred more than what I pay to them every year.

Is this a legit need or am I being taken for a ride?

Thanks

Also, anyone can refer another company in Phoenix AZ area that handles DB plans? I think I may be done with these guys.

Most, if not all, DB plans are in the process of being restated. $1,800 is pretty inexpensive compared to most DB restatement fees that I've seen.

[Kevin C]

Defined benefit plans that use pre-approved (prototype or volume submitter) documents are required to be restated every six years. The deadline for EGTRRA restatement is April 30, 2012.

http://www.irs.gov/irb/2010-15_IRB/ar10.html

Individually designed documents are on a 5 year restatement cycle, with the timing of the cycle determined by the last digit of the sponsor's EIN. Cycle A, the first 5 year cycle, ended 1/31/2007. The last one, Cycle E ends 1/31/2011. Then it starts all over again with Cycle A due by 1/31/2012.

Your DB service company can tell you which category you are in. It isn't surprising that the document fee is in addition to their normal annual fees. The document restatement is additional work that isn't part of the annual valuations they normally do for you.