Form 5308

[cpc0506]

Hello.  We filed a Form 5308 (request to change plan year) for a client for a 401(k) plan that was originally a calendar year plan, then changed to an off-calendar year plan 2 years ago and has now change back to a calendar year plan.  The form was submitted in October 2016. 

Do anyone know how long the turnaround time is usually for the Internal Revenue Service, Commissioner, TE/GE to acknowledge receipt of form.  Or, do you know who the client might be able to call to get an update on the status of the request.

[My 2 cents]

I was under the impression that plans don't get to keep changing plan year like that, and that it would not be unexpected for the IRS to refuse permission, especially since the first change was only a couple of years ago.  What legitimate reason could there be for making changes like that?

[cpc0506]

The employer changed his business entity status in 2016 to S-corp.  And added an ESOP plan to its mix of plans.  The form allows for the applicant to provide a statement of reason to allow the change.  Since the short plan year ended December 31, 2016, (which was the filing deadline for the Form), the client is rather surprised that he has not received any notification yet.