Plan termination and restatement

[cdavis25]

A prospect wants us to terminate their Plan in 2014. They are on a pre-approved Plan for the 6 year cycle. They are up-to-date on all required amendments. Would they need to restate in the upcoming 2014 cycle? I have heard they do not have to restate, but the conservative approach is to do it.

[ETA Consulting LLC]

They do "NOT" have to restate when they terminate the plan before the restatement deadline. The 'reason' for restating first is to get as many of the good-faith amendments under the new opinion letter. This provides greater protection in the event some language in the good faith amendments (i.e. RMD extentions) were flawed.

In the end, it's just a measure of risk. You can easily argue that the juice is not worth the squeeze in certain situations and proceed with your termination. Each case should be view on its own merits.

Good Luck!

[TPApril]

One-person plan is going to terminate in 2014. Up to date on all amendments, but should they do the PPA restatement?

[shERPA]

Yes IMO.

[TPApril]

ok, so restating in 2014, can the effective date of the restated ppa document be 1/1/14, even though the restatement period begins later?

[Bird]

Yes.