We have adopted a new, individually designed plan. We submitted it to the IRS for a determination letter. Now some employees who had contributions have terminated and want their distributions. Should we distribute or wait until we get the IRS letter?

Can you refuse to distribute? What does the plan say? Many plans say that if you cannot get the letter, the plan is terminated and contributions are returned. That could be a basis for delay in distribution.

The plan is vague enough so we can delay or not in our discretion. But in a roundabout way you have answered my question because the real question is how comfortable are we that we will get the letter, and I'm pretty comfortable on that.

Thanks.