Exclusion of Pre 1/1/09 Contracts Once In a Lifetime??

[austin3515]

Let's say "Inexperienced TPA" was doing the 2009 5500 and was not aware of the exclusion and therefore was preparing a compilation of the 30 custodial accounts (no trust level report), and about 10 or 15 of those are pre 1/1/09.

We would like to report the pre- 1/1/09 contracts as distributions to take advantage of the fact that they can be excluded.

Anyone have any problems with this? I do not see anywhere in the FAB's and articles that in order to exclude them you needed to do so in 2009.

[mbozek]

I have no idea of what exclusion you are talking about. My only recollection was that terms of some older 403b annuity contracts of former employees would not fail 403b status if employer made reasonable good faith effort to include those contracts as part of 403b plan document required under the regs if employer identified discontinued issuers and provided contract information for plan compliance coordinator or unapproved contract issuer communicated with employer to coordinate compliance type information prior to distribution or loan. See Rev Proc 2007-71.