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CCH® PENSION — 01/18/11

IRS Raises Fees For Most Determination Letter Requests

from Spencer’s Benefits Reports: The Internal Revenue Service has raised the fees for determination letters and advisory letters sought by qualified retirement plans and lowered the fee for one type of master and prototype plan opinion letter. The changes, made in Rev. Proc. 2011-8, I.R.B. 2011-1, 237, are effective February 1.

The fee for a new or amended non-mass submission by a master and prototype plan sponsor has decreased from $12,000 to $9,500 per adoption agreement. The fee has increased from $1,000 to $9,500 for advisory letters for each additional option agreement by a non-mass submitter volume submitter specimen plan.

The IRS raised the fees for almost every type of determination letter request, as follows:

(1) For a plan intending to satisfy a design-based or nondesign-based safe harbor, or a plan not seeking a determination letter with respect to any of the general tests, and the plan is not seeking a determination letter with respect to the average benefits test:

• The single employer Form 5300 determination letter fee is increased from $1,000 to $2,500;
• The single employer Form 5310 determination letter fee is increased from $1,000 to $2,000;
• The multiple employer Form 5300 or Form 5310 determination letter fee is increased as follows:

                     Two to ten employers             from $1,500 to $3,000

                     11 to 99 employers                from $1,500 to $3,000

                     100 to 499 employers            from $10,000 to $15,000

                     Over 499 employers from      $10,000 to $15,000

Average Benefit Test Or General Tests

(2) For a plan seeking a determination letter with respect to the average benefit test and/or any of the general tests:

• The single employer Form 5300 determination letter fee is increased from $1,800 to $4,500;
• The single employer Form 5310 determination letter fee is increased from $1,800 to $4,000;
• Adopters of a Master or Prototype Plan or a Volume Submitter Plan will pay a fee that is increased from $1,000 to $1,800;
• The multiple employer Form 5300 or Form 5310 determination letter fee is increased as follows:

                     Two to ten employers             from $2,300 to $5,000

                     11 to 99 employers                from $2,300 to $5,000

                     100 to 499 employers            from $15,000 to $25,000

                     Over 499 employers              from $15,000 to $25,000

(3) For group trust submissions under Rev. Rul. 81-100, C.B. 1981-1, 326; Rev. Rul. 2004-67, C.B. 2004-2, 28, and Rev. Rul. 2011-1, I.R.B. 2011-2, the fee has been increased from $750 to $1,000. Form 5316 to be used for group trust submissions will be available soon, according to the IRS.

The IRS also began charging fees for various determination letter requests involving exempt organizations. These changes were effective January 3.

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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