Current Timing for DL on Termination

[Guest bobolink]

I am just beginning the process of terminating a DB with excess assets and want to let the client know what to expect as far as timing. Does anyone have any experience with requesting a determination upon termination since the advent of the cycle program?

I did a quick search of this forum and apologize if this is addressed elsewhere, but I am looking for relatively current info.

Thank you!

[Effen]

With IRS submission we generally say 9-12 months, if PBGC only probably talking < 6 months. That timing is from the date they tell us they want to terminate.

[Guest Eric A]

Our last one took 7 months, measured from the date we mailed the 5310 to the IRS to the date we received the fdl. No PBGC filing.

[david rigby]

... a DB with excess assets ...

Please explain what this is.

[WDIK]

Please explain what this is.

You need to contact a paleontologist.

[Dougsbpc]

We have one terminated DB that was submitted to IRS in September 2008. Other than the initial letter indicating they received the package, we have not heard a word from them.

[Guest bobolink]

Yikes Dougs!

I am the OP. Are you still holding the assets?

[AndyH]

... a DB with excess assets ...

Please explain what this is.

It's a Ned special, a state of the art (at that time) former 412(i) plan with springing cash values. Boing, boing.

[Dougsbpc]

Benefits were distributed a few months after the termination date. That was a long time ago already.

Back a few years ago we had a DC plan termination that took almost two years. Benefits were not distributed with that plan until after the DL letter was secured. We did not hear from the IRS after the initial letter indicating they received the DL request. The client got impatient and started a calling Frenzy and screamed at the IRS every day for a week. Immediately, we received the favorable DL with no questions asked! That was a first. They normally have at least a few benign questions.