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CCH® PENSION — 01/04/11

IRS Issues List Of Retirement Plan Changes For Cycle A Qualification Requests

from Spencer’s Benefits Reports: Retirement plans seeking determination letters in Cycle A should incorporate the necessary plan updates outlined in the 2010 Cumulative List of Changes in Plan Qualification Requirements issued by the Internal Revenue Service in Notice 2010-90.

The Cycle A application period runs from Feb. 1, 2011, to Jan. 31, 2012. Two types of plans may request determination letters during the Cycle A period:

(1) single employer individually designed defined contribution plans, including employee stock ownership plans and single employer individually designed defined benefit plans for which the last digit of the employer identification number of the plan sponsor is 1 or 6, and
(2) defined contribution pre-approved plans (i.e., master and prototype (M&P) or volume submitter (VS) plans) for the second submission under the remedial amendment cycle under Rev. Proc. 2007-44, C.B. 2007-2, 54.

The 2010 Cumulative List reflects law changes under the Economic Growth and Tax Reconciliation Act of 2001 (EGTRRA, P.L. 107-16); technical corrections made by the Job Creation and Worker Assistance Act of 2002 (JCWAA, P.L. 107-147); the Pension Funding Equity Act of 2004 (PFEA, P.L. 108-218); the Pension Protection Act of 2006 (PPA, P.L. 109-208); the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007 (P.L. 110-28); the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART, P.L. 110-245); the Worker, Retiree and Employer Recovery Act of 2008 (WRERE, P.L. 110-458); and the Small Business Jobs Act of 2010 (SBJA, P.L. 111-240).

Except as provided in the next paragraph, the IRS will not consider the following items for determination letter requests in Cycle A: guidance issued after Oct. 1, 2010; statutes enacted after Oct. 1, 2010; qualification requirements first effective in 2012 or later; or statutory provisions that are first effective in 2011, for which there is no guidance identified in Notice 2010-90.

However, the IRS will consider the following guidance issued after Oct. 1, 2010:

• Notice 2010-84, I.R.B. 2010-52, if the plan has been amended regarding in-plan Roth rollovers.
• Final regulations under IRC Sec. 411(a)(13) and 411(b)(5).
• Notice 2010-77, I.R.B. 2010-51, which extends the deadline for amending cash balance and other applicable defined benefit plans to meet the requirements of Sec. 411(a)(13) and Sec. 411(b)(5) to the last day of the first plan year that begins on or after Jan. 1, 2011.

The IRS said that pre-approved plans will not receive consideration of IRC Sec. 414(x) involving combination defined benefit and cash or deferred plans.

For further information, contact Angelique Carrington in Employer Plans taxpayer assistance at (877) 829-5500 or RetirementPlanQuestions@irs.gov.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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