(b)lines Ask the Expert – Plan Document for Terminated Plans

December 2, 2008 (PLANSPONSOR (b)lines) - A plan provider asks: "Does the plan have to comply with the written plan document requirement if it is terminated prior to 1/1/09?"
By PS

No, a 403(b) plan does not have to comply with the written plan document requirement if it is terminated prior to 1/1/09. Bob Architect at the IRS has stated as such in a number of public presentations. However, note that in order to be terminated, the plan must distribute all assets as soon as administratively practicable, and how that is done with 403(b)(7) custodial accounts is unclear, as we have discussed elsewhere.

– David Levine, Groom Law Group, Chartered

«