I highly recommend that publication to practitioners who perform audits of employee benefit plans . Comments and corrections are, of course, always appreciated. K. Tax Status 1.
Distributions can qualify for favorable tax treatment, such as rollover, forward averaging.
If plan has been amended, review any new rulings issued by the IRS regarding the amended plan. If plan has not been amended recently, consider whether it should have been, to adopt changes required by new laws or regulations. In evaluating the results of audit procedures in other areas, be alert to matters that could affect qualification of the plan. Inquire of plan administrator about any plan activities that could cause the plan to lose its exempt status. Include in management's representation letter.