436 model amendment

[Zorro1k]

We used the 436 IRS model amendment for a client. That client filed a determination letter upon terminating the plan. The IRS sent an inquiry asking for the amendment that was adopted to be amended to remove the incorporation by reference to the definitions in Sections 1.436-1(j)(1-9). I looked at that section and there is no explained definition. Where can I find that?

[Belgarath]

I'm not sure I understand the question. Section (j) is definitions. Did they just want you to remove the incorporation by reference, or do they want you to actually insert the text of all the definitions?

[Zorro1k]

Thanks for the reply. The inquiry said to remove incorp. by reference. I'm thinking that means defining in the document (rather than simply removing) but I don't know what language to use because the definitions are spelled out in section (j).

[Belgarath]

Well, I'm not sure what they are looking for - you may have to ask them. But here's a link to the 1.436 regulations, which includes the text of the (j) 1-9 definitions. Good luck!

http://www.ecfr.gov/cgi-bin/text-idx?SID=f08104df7ff53f8d0cf900e730130990&mc=true&node=se26.7.1_1436_61&rgn=div8

[GMK]

I agree that you probably have to ask them if you have to spell out the definitions in the plan, which could very well be what they want.

In a recent D/L review, we had to replace a paragraph in the Plan Doc that incorporated a section by reference with the text of the referenced section (3+ pages in place of a short paragraph). No fun, but it's what they wanted.

[My 2 cents]

Perhaps it could have something to do with the terminating plan having to satisfy the PPA requirements on more than just a good faith interim amendment basis. When does that come into play?