GUST Amendments for Terminating DB Plan

[Hoard1]

In the adsence of GUST Amendments from prototype providers how are people terminating DB Plans with the Service?

[Guest Ray Williams]

Fisrt- we try to never use Prototypes. When we have to terminate a prototype, we proceed the same as with an IDP, we submit amendments based on language that IRS has approved in the past. Some times and agent will require different language, however they will then provide an example of the language they prefer. If the langauge requested does not cause us any practical problems, we have our client execute an amendment based on that language. Otherwise you will have to discuss your objection with the agent, and possibly a supervisor.

We have never had an agent require us to amend a plan without providing sample language.

[KJohnson]

I would be persistent with your prototype provider. A number will send you "sample" or "suggested" amendments for terminating a plan which come with a ton of language saying that they have not yet been approved by the IRS. However, these at least give you something to submit to the IRS.

Other prototype sponsors just say that you are on your own and you need to either retain an attorney to draft the amendments or wait for their approved amendments. (I know, retaining an attorney to "learn" a protoype plan defeats the original purpose of using the document.) If you need to terminate now, waiting is also usually not an option.