EPCRS, Plan Termination & Audit

[Guest mcw]

Client wants to terminate its profit sharing plan. However, there are several years where there were testing problems that have to be corrected under EPCRS. They want the termination effective 10/31 (the end of the upcomong plan year). Can you submit the Form 5310 with the voluntary compliance submission similar to what you do with the Form 5300? I assume the approval of the voluntary compliance submission and the determinatino letter will take more than a year. Is the audit still required with the Form 5500 after termination?

[Guest Sieve]

Yes, you can file a 5310 along with a VCP application. Yes, it will take longer than a year to resolve. And, Yes, I beleive an audit will still be required with the Form 5500 after plan termination (if there are the requisite number of participants).

[Guest mcw]

Thanks for your response.

Can you terminate the plan effective 10/31/2011 (end of plan year) contingent on receiving a favorable rulling from the IRS?

Also, should (can) the client withhold regular distributions (i.e. hardships, terminations, death, etc.) until the ruling is received?