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CCH® PENSION — 04/15/10

IRS officials provide status updates and reminders for plan determination letters

At a March 31, 2010 teleconference, IRS Employee Plans Rulings & Agreements Director Andrew Zuckerman set out several upcoming goals of the IRS determination letter program and Employee Plans Determinations Manager Vickie Surguy reminded practitioners of upcoming deadlines regarding determination letter requests.

Determination program goals

Zuckerman said that the IRS determination letter program is currently working toward:

• Issuing opinion and advisory letters for defined benefit pre-approved plans by the end of the third quarter;
• Evaluating the process and need for interim plan amendments;
• Implementing a program to amend 403(b) plans; and
• Issuing pre-application defined benefit plan letters and beginning the submission window for pre-approved defined contribution plans on February 1, 2011.

According to Zuckerman, the IRS is taking a look at its staggered process for remedial amendments to retirement plans. "We want to check out the filing patterns, make technical changes to the program to make it better for you -- the employers and the practitioners -- as well as making improvements to our processing to make the program...easier and more effective for everyone," he stated. "All ideas are very much welcome. Currently, we have an official advisory committee that is doing a study.... We're expecting some very interesting comments and suggestions from that group," he added.

Reminders on deadlines

Surguy reminded practitioners of the approaching deadline for submission of remedial amendments and related determination letter requests for defined contribution plans entitled to use the pre-approved plan six-year cycle. In 2008, the IRS provided a two-year period for these plans to come into compliance with relevant provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA; P.L. 107-16). As a result, these plans must make the necessary remedial amendments to come into compliance with EGTRRA by April 30, 2010. Also as a reminder, Surguy explained that the IRS will only accept these submissions from defined contribution plans on Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans.

As a side note, Surguy pointed out that, according to IRS revisions to employee plan determination letter procedures, plans are no longer required to submit plan documents with red-lined changes. However, she explained that doing so would assist IRS specialists in their review process and, therefore, expedite a plan's request.

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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