Fall 2009 issue of Horizons

Raise Your Expectations CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

Clients currently using one of the prior prototype plan defined contribution plan documents sponsored by RubinBrown must complete and execute the new EGTRRA adoption agreement by April 30, 2010, to keep their tax-qualified plan status and comply with the requirements. In addition, the same rules apply to volume submitter plan documents, and RubinBrown also is the volume submitter plan sponsor of an IRS-approved EGTRRA plan document that has a basic plan document, adoption agreement and IRS advisory letter. The Benefits Group is sponsoring a series of prototype and volume submitter plan document restatement sessions this year for its clients to review and discuss the new basic plan document, related adoption agreements and relevant changes. Existing clients will be contacted in the fourth quarter and invited to one of the training sessions that will be held at RubinBrown’s office. In addition, clients using another firm’s prototype plan document or individually designed plan document also may use one of the EGTRRA adoption agreements. Please contact Wayne Isaacs if you would like to use the EGTRRA document or obtain further information about the training sessions.

indicating that it meets all the requirements. This document normally includes additional provisions that the IRS does not allow to be included in a prototype plan document (i.e., enhanced employer contribution formulas, allowing multiple unrelated employers to participate in the plan, etc.). The volume submitter plan sponsor may then draft and customize the plan document for an employer to look like an individually designed plan document or may include a sample plan (basic plan document) and an adoption agreement for an employer to identify the plan design provisions it wants to select. The adoption agreement enables the employer to check a box and choose the applicable feature it wants for its plan from a variety of available options. A prototype sponsor is required to amend and update its plan document to incorporate required legislative and regulatory changes. In 2006, the IRS issued guidance identifying the procedures for revising prototype plan documents to comply with changes to the retirement plan provisions based on The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and related IRS regulations. A basic plan document and applicable adoption agreement was revised to reflect required changes, and the IRS also allowed the inclusion of additional plan design features to offer more flexibility for adopting employers. The new basic plan document and adoption agreements are referred to as EGTRRA documents.

Questions? Contact:

Wayne A. Isaacs, JD, CPA, CEBS Manager Benefits Group 314.290.3493 wayne.isaacs@rubinbrown.com

Client Action

RubinBrown is the prototype plan sponsor of several IRS-approved EGTRRA plan documents that use the same basic plan document but have their own adoption agreement and IRS opinion letter:

• Nonstandardized Profit Sharing Plan • Standardized Profit Sharing Plan

• Nonstandardized Money Purchase Pension Plan • Nonstandardized Profit Sharing Plan with Cash or Deferred Arrangement (401(k) plan)

22 u fall 2009 issue