Mass Submitter, Volume Submitter, or Prototype Cash Balance Plan?

[Guest TaxedToDeath]

Does anyone actually have a mass submitter, volume submitter, or prototype cash balance plan?

Seen a lot of cash balance plans that are using an Adoption Agreement and some sort of volume submitter base plan document, but the opinion letter for those documents is for a defined benefit plan, so really it looks like practitioners are customizing volume submitter defined benefit plan documents to accommodate a cash balance plan's provisions. Am I right that these aren't really volume submitters anymore, but individually designed plans?

I seem to remember the IRS saying something about a program to formally approve cash balance plan documents - does anyone recall exactly where and when they said that?

[John Feldt ERPA CPC QPA]

Although the IRS mentioned that someday they might devise some limited cash balance plan language that will allow such a plan to fit in a pre-approved document, that day has not arrived (as far as I know). I think they mentioned it several years ago, but I do not recall where, maybe at an conference, webcast, or an IRS phone forum.

Right now, adding cash balance plan provisions to any of those type of documents will destroy the document's reliance on its opinion letter or its advisory letter. Cash balance plans still must use individually drafted plan language (IDP language). Of course, they can start with a document that looks like a pre-approved document, but the cash balance language means it has no reliance. In any case, be sure to submit to the plan document to the IRS for a determination letter during it's cycle (or some exception to the cycle under 2007-44).

There are providers out there that offer cash balance documents: Datair, SunGard Corbel, FT. William?, Accudraft?, McKay Hochman (Newkirk)? - etc. but no matter what they look like, those are all IDPs. Even with those you need someone who really knows how the language should work in order to avoid a problem and you'll probably need to run the language by the plan's actuary. Of course, you could always find and contact a law firm for a document, just make sure they are familiar with drafting such documents.

[Guest TaxedToDeath]

Thanks, John. Appreciate the help!