CB Plan, possible takeover, delinquent for 3 years

[Jakyasar]

First time thinking about helping someone who has been delinquent for 3 years and wanted to check what others think and needs to be done, never had to deal with it before for 3 years. This is outside my comfort zone but may make an exception due to relationship, depending on the data I will getting.

CB plan effective 2022

One lifer

Is delinquent for the following (has initial document, not sure if cycle 3 is done):

1. 5500EZ filings for 3 years - easy to fix assuming no letters received from IRS.

2. Schedule SB certifications for 3 years as no valuation has been done

3. AFTAPs for 2023 and on - first 5 years rule may help here

Has been depositing same amount each year and taking deductions.

Any suggestions/comments on what to do on to correct all this and bring the plan into full compliance?

[Bill Presson]

Jak,

For what it’s worth, I wouldn’t try to do this ala carte. He needs three full valuations and everything that goes with them. Then add the late filing work. 
 

That will get you where you need to be. 

[Jakyasar]

Hi Bill

Thank you for your sound advice. It is not a la carte work, it would be a full buffet, I would be taking from the beginning and fix everything, each step of the way.

What I am trying to understand is, what and if VCP filing needs to be involved and that is where I get an attorney involved.

I am trying to understand if I can make all these corrections under EPCRS or SCP.

[david rigby]

You might need a significant portion of your fee paid up front.

[Jakyasar]

That's not a problem.

[Effen]

I suggest you ask an ERISA lawyer those types of legal questions.    

[Jakyasar]

That I agree but mine was a practical approach question. I have every intention getting an ERISA attorney involved, if I take the case.

I just want to find out what other DB/CB gurus or actuaries do in these situations.

[mming]

Would attorney involvement not be needed if 1) it's determined that the plan doc is up to date, 2) the vals are created and it's found that all the contributions were adequate and deposited in a timely manner, and 3) the IRS' late filer program is used?   Yes, some big ifs, especially #1.