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Rball4
09-26-2011, 10:03 PM
We need to do an IRS Cycle A plan restatement (last updated in 2007 of course). I have a straight forward plan with only one amendment , which incorporates PPA, the Heart Act, and WRERA. The law firm is quoting $3500 to $6500 for document restatement and SPD work. This is my first time through these as a consultant and wanted to see if this fee quote was reasonable. It seems high to me. Does anyone have experience with this?
BadBeatMe
09-26-2011, 11:17 PM
That's a good price. Is it a prototype or are they putting it on a volume submitter? If it's individually designed then it's a steal.
Rball4
09-26-2011, 11:37 PM
That's a good price. Is it a prototype or are they putting it on a volume submitter? If it's individually designed then it's a steal.

It's individually designed.
douglan
09-27-2011, 02:06 PM
It's individually designed.

that is a very low price for an ID plan IMO. i'd be a little nervous with any firm that promises to do a restatement at that price. better check to make sure it reflects all required interim amendments as well as the IRS cumulative list for cycle A filers ;)

ETA: And the price includes the SPD? That's dirt cheap. Buyer beware! ;)
Rball4
09-27-2011, 02:21 PM
that is a very low price for an ID plan IMO. i'd be a little nervous with any firm that promises to do a restatement at that price. better check to make sure it reflects all required interim amendments as well as the IRS cumulative list for cycle A filers ;)

ETA: And the price includes the SPD? That's dirt cheap. Buyer beware! ;)

What price ranges are you seeing?...closer to $10k? The plan is very straight forward, and the only amendments since the 2007 restatement were for PPA, the Heart Act, and WRERA (no formula changes).
Duffer
09-27-2011, 04:22 PM
For a plan covering lots of participants and millions in trust funds, that price is a steal.
For small cash balance plans under 25 lives, that price is a stretch. The tax benefits won't make that cost effective.
BadBeatMe
09-28-2011, 06:54 AM
For a plan covering lots of participants and millions in trust funds, that price is a steal.
For small cash balance plans under 25 lives, that price is a stretch. The tax benefits won't make that cost effective.

I'm not sure I understand the relevance of this. How does the size of the plan affect the amount of work needed to restate it?
douglan
09-28-2011, 10:48 AM
What price ranges are you seeing?...closer to $10k? The plan is very straight forward, and the only amendments since the 2007 restatement were for PPA, the Heart Act, and WRERA (no formula changes).

I once quoted a client $800,000 for a plan restatement. of course, that was a *pretty* large plan. ;)

not sure if there is a typical price. but that price for the plan/SPD seems really, really low to me.