EGTRRA Restatement Commonly Asked Questions
(Download the EGTRRA Restatement Commonly Asked Questions PDF)
Below are the top 5 most commonly asked questions to SunGard's employee benefit attorneys, and their answers:
Q. Does the EGTRRA Prototype documents have cross-tested or age-weighted allocation options available?
A. Yes. Both the Corbel and PPD Prototype and Volume Submitter documents for 401(k) and Profit Sharing have cross-tested or age-weighted allocations available.
Q. Who is an Authorized Representative on Form 2848 Power of Attorney?
A. There are 4 groups of authorized representatives that can sign Form 2848 Power of Attorney:
1. Attorneys
2. CPAs
3. Enrolled IRS Agents
4. Enrolled Actuaries
5. Enrolled Retirement Plan Agents
Q. What does RAP stand for?
A. It stands for Remedial Amendment Period. RAP's 5 and 6 year cycles provide the required restatement deadlines for Individually Designed plans, Prototype and Volume Submitter plans and Defined Contribution and Defined Benefit plans.
Q. When should I restate my plans?
A. It depends upon the type of retirement plan you are restating. If you are restating an individually designed plan, then you are on a 5 year cycle and the last digit of your EIN will determine the year you will need to restate. If you have pre-approved plans, then you are on a 6 year cycle. Please view the ‘Remedial Amendment Five and Six Year Cycles’ for more information.
Q. What is a Form 8905? And, should I adopt it?
A. The Form 8905 is a good-faith intention to use a pre-approved plan (prototype or volume submitter). It was enacted with Revenue Procedures 2005-66 which permitted the use of the form as an alternative method of entitlement to the 6-year cycle. However, Rev. Proc. 2007-44 changed the use of the Form so that it can no longer be used as an alternative means of entitlement to the 6-year cycle. Rather, Form 8905 can now only be used where an employer is using an individually designed plan and intends to use a pre-approved plan for its restatement. This Form cannot be used for cash-balance, ESOPs, and Defined Benefit plans with 414(k) accounts since these plans cannot be restated onto a pre-approved plan.