Notice to Whom?

[Just Me]

I am filing a plan for determination letter. It is an old plan that only has former employees' accounts in it. The sponsor no longer has any active employees. So who gets a Notice to Interested Parties? The rules say any "present employee" participating or working in the same location as present employees who are participating. If I check "no" to whether we provided the notice, then the instructions to the 5300 say the filing will be rejected. Based on the definitions, I don't think there are any interested parties to notify.

[K2retire]

Does anyone still have an account balance?

[Just Me]

Yes. But the regulations say that the notice to interested parties only goes to "present employees". None of the participants with balances are employed anymore.

[GMK]

the notice to interested parties only goes to "present employees".

According to 1.7476-1(b), that's right.

http://law.justia.com/us/cfr/title26/26-13...1.0.18.286.html

Is there anywhere else we should be looking?

[DMcGovern]

I am filing a plan for determination letter. It is an old plan that only has former employees' accounts in it. The sponsor no longer has any active employees. So who gets a Notice to Interested Parties? The rules say any "present employee" participating or working in the same location as present employees who are participating. If I check "no" to whether we provided the notice, then the instructions to the 5300 say the filing will be rejected. Based on the definitions, I don't think there are any interested parties to notify.

Since there are no present employees to notify, would you not respond "yes" to providing the notice?

[Trekker]

I think this will help.

Regs. 1.7476-1(b)(5)

(5) Plan terminations. In the case of an application for an advance determination with respect to whether a plan termination affects the continuing qualification of a retirement plan, paragraphs (b) (1), (2), (3) and (4) of this section shall not apply, and all present employees with accrued benefits under the plan, all former employees with vested benefits under the plan, and all beneficiaries of decreased former employees currently receiving benefits under the plan, shall be interested parties.

[Guest Sieve]

If there are no "interested parties" per the regs, then the proper response to whether interested parties have been given notice ought to be Yes.

[Just Me]

Thanks for all the responses. This is not a plan termination, so the citation to the regulation that requires notice to former employees does not apply. This is just a Cycle E determination letter filing.

As for the "yes"/"no" question on the 5300, I think yes is the only answer you can give. The instructions to the 5300 say if you check "no" or leave it blank, your filing will be rejected. So you have to say yes. We are going to say yes. There is nobody who is entitled to notice that failed to get one...