Possible Affiliated Service Group

[JAY21]

Possible takeover DB client that has apparently heard some comments that some other companies they have some affiliation with might cause the plan some problems and have requested that we determine if an ASG exists (my words) before taking it over. We'll do our best but doesn't the IRS still have an option to rule on an Affiliated Service Group ? is it available just via Form 5300 for the initial qualification of a DB plan (or any plan) ? or as a separate stand-alone ASG ruling (maybe just a private letter ruling).

I thought I remember seeing or hearing that the IRS will no long rule on ASGs ? but may I heard wrong or maybe it's just as a separate private letter ruling they won't but will for an initial qualification ?

Anyone remember ? Thanks.

[david rigby]

Sorry, not direct answer to your question.

Are you a TPA? The nature of your "takeover" is not clear from your question.

Just my opinion: I think the determination of ASG is a job for the plan sponsor's attorney, and the response should be in writing. If you think the sponsor is trying to avoid the legal opinion, it might be best to keep moving.

[frizzyguy]

Sorry, not direct answer to your question.

Are you a TPA? The nature of your "takeover" is not clear from your question.

Just my opinion: I think the determination of ASG is a job for the plan sponsor's attorney, and the response should be in writing. If you think the sponsor is trying to avoid the legal opinion, it might be best to keep moving.

I completely agree with Dave. (Just messing with you David, only Mother Rigby calls him Dave.) Even if you know the rules through and through (nobody does) you never get the full story. This is a topic most ERISA attorneys can answer pretty easily and the fee isn't too ridiculous. I usually send a some literature on the topic to my prospects or clients and give them the name of a good ERISA attorney in town.

[Doghouse]

My understanding is that you can request the IRS to rule on affiliated service group determination status, just not on the effects on qualification associated with such a ruling. The instructions for Form 5300 contain some specifics about such a request. Good luck getting anything back in time to help though!