Jump to content

Decision Not To Request IRS Determination Letter


Andy the Actuary

Recommended Posts

Have a 5 person professional DB plan where age 50ish principal stands to get a lump sum of about $1.5 million -- the 415 maximum. The principal does not want to spend the money to obtain an IRS Determination Letter.

When we've requested a D-Letter on plan termination for such plans, we attach to the 6088 the benefit calculations.

The D-Letter, thus, not only serves as an insurance policy for the client but also to some extent for the actuary.

If you've been involved in such situations, have you requested the client to execute a hold-harmless agreement since they are acting against your recommendations in not requesting a D-Letter?

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

Link to comment
Share on other sites

Very helpful, thank you. The pros/cons have been laid out but were not part of a signed agreement. Now, they will be.

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...