Non-Electing QCCO Needs Pre-approved 401(k) Document

[Patricia Neal Jensen]

A Non-Electing QCCO (prospective client) needs a pre-approved 401(k) (not 403(b)) plan document.   So far I have not found one.   This is an existing plan using a 401(k) document and doing testing but not filing a 5500.  Their vendor holding the assets wants them on a document with an IRS Letter.   So 2 questions:

1. Anyone know of a Non-ERISA  (Non-Electing) Church or QCCO document for 401(k) with an IRS Letter?

2. Suggestions on what to do instead?  Have thought of freezing the 401(k) and starting a Non-Electing 403(b) for which I have a pre-approved document.  Cannot merge the 2 documents but the 401(k) does not file 5500's so might be the best we can do?

Thanks!

[PensionPro]

Per revenue procedure 2015-36 pre-approved program does not cover non-electing church plans.  This will change with cycle 3 restatement but those documents will not be available until 2020 at the earliest.

[Flyboyjohn]

Since this is a vendor requirement I wouldn't hesitate to throw them on a preapproved ERISA document to shut the vendor up but otherwise ignore it.  

[Patricia Neal Jensen]

Pension Pro....We do have approved PPA documents for 403(b) for churches and QCCO's.  Just not 401(k).

Flyboy john.... actually not a bad idea.  It will void the reliance to do that, however.  That was the best our document provider came up with as well.

Thanks for your thoughts and ideas!

[katiejoseph]

Be careful about what you send out to participants if you use a preapproved ERISA document (assuming you can find one that accommodates all of the plan's features); the participant communications generated may reference ERISA in ways that confuse participants and create unnecessary risk for the plan sponsor.

At the risk of stating the obvious, you could also obtain a determination letter on it, assuming that it has not been submitted for one before.

 

[PensionPro]

3 hours ago, Patricia Neal Jensen said:

Pension Pro....We do have approved PPA documents for 403(b) for churches and QCCO's.  Just not 401(k).

I was addressing question 1 in your op relating to a 401k plan document.