Chaning Prototype Sponsor; Re-Amend for 415, HEART, etc.

[Guest djw]

Our TPA is switching from one prototype sponsor to another. With the prior sponsor, we have and EGTRRA D-letter and we timely adopted for 415, HEART, etc. The new prototype sponsor wants us to restate onto their document. I'm OK with using current date on the Adoption Agreement, but not on the 414, HEART and other amendments as it may appear that those amendments were adopted late. Is there any IRS guidance as to what date should appear on the re-amendments that are not incorporated into the Adoption Agreement?

[QDROphile]

You get what you pay for with prototypes, including faith that everything works out right despite documents making no sense to a literate person and unconsciousness of the representatives of the provider. Congratulations for even reading something other than the adoption agreement.

[mbozek]

Our TPA is switching from one prototype sponsor to another. With the prior sponsor, we have and EGTRRA D-letter and we timely adopted for 415, HEART, etc. The new prototype sponsor wants us to restate onto their document. I'm OK with using current date on the Adoption Agreement, but not on the 414, HEART and other amendments as it may appear that those amendments were adopted late. Is there any IRS guidance as to what date should appear on the re-amendments that are not incorporated into the Adoption Agreement?

I think the employer should adopt these amendments as of the date of adoption of the new prototype plan in order to confirm that the employer has adopted all amendments required under the new sponsor's plan to maintain qualification beginning with the date the plan is adopted. Adoption of the 415, heart etc amendments of the new prototype sponsor is required b/c they will be the documents that the employer will be using for 2011 and future years. If the new prototype document does not contain these required amendments then the IRS would claim that the new plan is not in conformance with the regs as of the year it was adopted. Adopting these amendments again as part of the new plan would not change the fact that you timely adopted the amendments under the prior plan which is why you need to retain those documents forever.