EGTRRA Restatement

[retbenser]

Plan's termination date was 12/31/2011.

Asset Distribution date is 7/31/2012.

Does the plan document have to be restated for EGTRRA or are "good-faith" amendments sufficient?

Thanks.

[ETA Consulting LLC]

Plan's termination date was 12/31/2011.

Asset Distribution date is 7/31/2012.

Does the plan document have to be restated for EGTRRA or are "good-faith" amendments sufficient?

Thanks.

If the restatement deadline for DB was April 30, 2012, then you would've amended your plan to terminate prior to that date. Technically, a restatement wouldn't have been required.

Good Luck!

[ScottR]

I generally restated terminating plans if our EGTRRA prototype had been approved prior to the plan termination date. Otherwise, I just went with good faith amendments, because that was the best we could do.

Not saying you're wrong, but I would have restated the plan prior to 12/31/11 as part of the plan termination process.

... Scott

[John Feldt ERPA CPC QPA]

Restating a prototype, as ScottR suggests, leaves less "open" language on the table. "Open" for the IRS to scrutinize should the plan be audited later. The opinion letter associated with the EGTRRA prototype now covers the good-faith amendments for EGTRRA (2002), the 401(a)(9) regulations, the mandatory rollover rules from 2005, the PFEA language, and the Final 415 regulations. Certainly not required, but the plan does have some small extra assurances that way.

[frizzyguy]

I generally have the conversation with the client that J4FKBC mentions (he's right), explain what ERISAtoolkit.com mentioned (he's right too) and then tell them the price for the restatement and let the client choose. I do the same approach to whether or not they are going to apply for a d letter upon termination.

Guess what they always choose...