Cash Balance Plan never submitted

[Rai401k]

We don't deal with many cash balance plans most of our plans are defined benefit plans. We use the Corbel Pre-Approved Volume Submitter plans and know that our DB plans must be restated by 4/30/2012. However we were under the impression that the Cash Balance plans fell under the same window and that the CB plans could rely on the pre-approved VS documents as well. I guess we were under a rock this whole time. We now know that Cash Balance plans are considered to be Individually Designed Plans and should be on the 5 year cycle - not the 6 year cycle like the DB and DC plans.

We have 3 Cash Balance Plans

1st plan's EIN# ends in "0" - plan effective date 1/1/2006

2nd plan's EIN# ends in "0" - plan effective date 1/1/2007

3rd plan's EIN# ends in "5" - plan effective date 1/1/2009

Based on what i am reading these all fall under Cycle E of the 5 year cycle, this means all 3 of these plans should have been submitted for a determination letter on 1/31/2011 is this correct?

Does anyone know how we go about correcting this now? Are these plans doomed at this point or can we go through the correction program? If so can anyone point me to a link? I've searched the IRS website and they have a submission kit for a missed EGTRRA restatement but it pertains to the 4/30/2010 DC plans restatement.

Also how does the effective date of the plan play in to when the document must be submitted on the 5 year cycle - i know you have to look at the last digit of the EIN but i was reading that you have to look at when the tax returns are due as well...maybe i am making this up? For example the 3rd plan above was effective 1/1/2009 i thought this would fall in to the next 5 year cycle but after researching a bit further the returns for the 2009 plan were due in 2010 but this still falls before the 1/31/2011 due date for the Cycle E so it would be due the same time as the othe two. Am I correct?

[John Feldt ERPA CPC QPA]

Welcome to the 5-year restatement cycle.

Yes, all 3 plans could have been restated and then submitted for a determination letter request by the 1/31/2011 deadline (that would be the recommendation). However, plans are not required to obtain determination letters, so you do not have a qualification error (unless you know your document has an error in its language). One exception, I think, if the plan had some operational error and wanted to rely on SCP, I think the plan has to have a D letter.

Since you do not have a qualification error, you have nothing to correct. Instead, documents are open for scrutiny upon audit (where normally the D letter would protect the plan spnsor from such scrutiny).

You should at least submit these plans during their next cycle (restate using the cumulative list that will be released in late 2014 and submit by January 31, 2016).

[Mike Preston]

Are any of the plans conversions from non-cash balance defined benefit plans? If so, and if the pre-conversion plan was on the 6 year cycle, you may still have until 4/30/2012 to submit the individually designed cash balance plan for the first time.

[Rai401k]

Thank you both for the replies, very helpful. I will need to find out if they were defined benefit plans pre-conversion. If that is the case i will make sure we submit now. I feel like they weren't so we may have to go the route of submitting during the next cycle.

Thanks so much!