Lost signature pages for documents

[Guest JPR]

We are doing a 401(k) plan audit and the document signature pages can't be found. Last signed document is 2004 with EGTRRA amendment. what is best solution? Plan is operating properly.

[MoJo]

We are doing a 401(k) plan audit and the document signature pages can't be found. Last signed document is 2004 with EGTRRA amendment. what is best solution? Plan is operating properly.

Unless they can find the signature pages, sounds like a nonamender filing with the IRS is the only solution.

[Guest JPR]

We are doing a 401(k) plan audit and the document signature pages can't be found. Last signed document is 2004 with EGTRRA amendment. what is best solution? Plan is operating properly.

Unless they can find the signature pages, sounds like a nonamender filing with the IRS is the only solution.

Do you know off hand the potential penalty?

[Belgarath]

An IRS auditor might (I've seen it happen) accept a corporate resolution that was properly and timely executed, plus corporate minutes, for example, of evidence of the timely adoption of the amendment/document. Problem is that there's no way to know in advance whether an auditor is going to be reasonable or obnoxious.

The submission fee under VCP depends upon the number of participants - less than 20 would be $750, for example. Check Revenue Procedure 2008-50 - I think it may be Section 12, but I'm not certain, going from memory!

[MoJo]

Do you know off hand the potential penalty?

Technically, it is a qualification issue, so worst case, the plan could be disqualified, and that would not be fun for anyone (and I am currently woirking through one of those - and the penalty asked for by the IRS was $60k.

The VCP filing is rather easy and relativcely inexpensive. The only problems I've seen with it are 1) plan operations consistent with what should have been adopted (and/or an appropriate fix for that as well), and 2) "other" issues the plan may have that are discovered by the IRS during the VCP process. With respect tot he lattere, I always try to fix everything fixable first, and include everything that is necessary in the VCP filing.