Should we apply for a determination letter on termination of year-old

[Guest Lisa Flagg]

I have a client with a 401(k) profit sharing plan (a prototype plan) and he wishes to terminate this plan and start a SIMPLE IRA Plan. Should he file for a determination letter with the IRS? The prototype plan was adopted in 1/1/99.

Also, I was wondering if it was possible to start up the SIMPLE plan and then merge the profit sharing plan into it?

It seems that would be simpler.

Thanks for any help you can provide.

[Guest Lisa Flagg]

One addition to the above info regarding this prototype plan. I've been told by the administrator that this is a new plan, and that a request for a determination letter was made in April 2000 but that a reply from the IRS has not been received. After they receive the reply, they will then amend the plan to be in compliance with GUST. How does this affect my termination. Thanks.