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CCH® PENSION — 10/19/11

IRS updates procedures for requesting opinion and advisory letters for M&P and VS plans

The IRS has updated the procedures for requesting opinion and advisory letters on the acceptability of the form of master and prototype (M&P) and volume submitter (VS) plans. Rev. Proc. 2005-16 has been modified and superseded. The updated procedures are effective October 31, 2011.

The IRS has made many changes to the procedures, including minor revisions and clarifying language. In addition, the purpose and background sections of the procedures have been updated to summarize the second six-year remedial amendment cycle for pre-approved defined contribution and defined benefit plans. In the purpose section, the IRS notes that it began accepting applications for pre-approved defined contribution plans February 1, 2011. The second six-year remedial amendment cycle for pre-approved defined contribution plans ends January 31, 2017.

As provided in Section 18.02(1) of Rev. Proc. 2007-44), the 12-month applicable on-cycle submission period for non-mass submitter sponsors and practitioners, word-for-word identical adopters, and M&P minor modifier placeholder applications will end on January 31, 2012, and the nine-month applicable on-cycle submission period for sponsors and practitioners maintaining defined contribution mass submitter plans will end on October 31, 2011. The IRS has extended the submission deadline to submit applications for opinion and advisory letters for defined contribution mass submitter plans from October 31, 2011 to January 31, 2012. The 2010 Cumulative List of Changes in Plan Qualification Requirements, Notice 2010-90, is to be used by plan sponsors and practitioners submitting determination, opinion or advisory letter applications for plans during this period.

Changes for all pre-approved plans

The IRS made the following changes that are applicable to all pre-approved plans:

M&P pre-approved plan program changes

Changes to the M&P plan program include the following:

VS pre-approved plan program changes

The following changes have been made to the VS plan program:

Source: IRS Rev. Proc. 2011-49.

For more information, visit http://www.wolterskluwerlb.com/rbcs.

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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