Applying for EIN

[luissaha]

I'm setting up a new 401(k) plan for a client and applied for an EIN using the IRS's on-line system. When applying, you are asked the type of legal structure that is requesting the number. I checked the box for "Employer Plan." As a result, the EIN I received is in the name of the retirement plan, not the trust. When I sent the EIN letter to the recordkeeper and custodial bank, and they told me they would not accept it because it was not for the plan's trust or in the name plan sponsor. Does it make sense as to why the recordkeeper and bank won't accept the EIN for the plan? Any help would be appreciated.

[K2retire]

Could this be why attorneys often draft documents with the name of the plan including the phrase "Plan and Trust"?

[QDROphile]

The trust is the legal owner of the assets and does distributions and tax reporting. Everything just lines up better if the trust is identified. It may be possible to work with the "plan" but maybe not and in any event people would have to think outside of the easiest convention and that is a terrifying prospect for cookie cutter providers.

The really sad part is if you applied for an EIN for the trust, the IRS system is confusing and misleading and would give you bad information about filing.

[Bird]

No it doesn't make sense. Your mistake was giving them the letter, which gives them an excuse to look for trouble and be difficult. Next time call them up and say "the number is xx-xxxxxxx" or put in on their form for them. I suppose in this instance, you can try to tie the name of the plan to the trust provisions that are no doubt in included in the plan (I'm assuming that there are not two separate documents). Actually, the thing to do is spit out a whole bunch of pdfs - the plan (adoption agreement), the basic plan document if applicable, the SPD, the loan policy, QDRO procedures, anything and everything you can think of that has nothing to do with anything, and say "yes, actually the 'plan' is a 'plan and trust', and these documents prove it."

You can also just say "what are you gonna do about it, not take the assets?"