Decision Not To Request IRS Determination Letter

[Andy the Actuary]

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?

[Peter Gulia]

In considering your potential liability exposures, are you worried only about liability to the max-getting principal, or are you also worried about liability to others?