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CCH® PENSION — 01/28/11

Revised determination letter procedures issued by IRS

The IRS has issued revised procedures for issuing determination letters on the qualified status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans (ESOPs), and the status for exemption of any related trusts or custodial accounts. The revised procedures are effective February 1, 2011.

The first part of the revenue procedure includes instructions for requesting determination letters; the second part includes guidance on providing notice to interested parties regarding such requests; and the third part explains the processing of these requests and the effect of determination letters. The IRS has made several changes, most of which involve minor revisions such as updating citations and references to other revenue procedures. A couple of revisions reference the second submission period for Cycle A individually designed plans and defined contribution plans that are master and prototype (M&P) or volume submitter (VS) plans. Additions have been made that provide that the IRS will consider Code Sec. 414(x) in issuing determination letters for individually designed plans that consist of a defined benefit plan and a qualified cash or deferred arrangement. A Code Sec. 414(x) combined plan sponsor must submit two Form 5300s and two user fees. Another revision includes Code Sec. 415(m) in the list of areas in which determination letters will not be issued. Also, Courier 10 point font should be used when preparing an application in order for the documents to be properly scanned. Another change clarifies which Cumulative List will be used in reviewing various plans and requests.

Source: IRS Rev. Proc. 2011-6, I.R.B. 2011-1, January 3, 2011.

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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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