IRS announces deadline to submit determination letter applications for pre-approved DC plans

The IRS has announced that starting May 1, 2014 and ending April 30, 2016, it will accept determination letter applications from employers under the second six-year remedial amendment cycle for pre-approved defined contribution plans.

The IRS said that it will soon issue opinion and advisory letters for pre-approved (i.e., master and prototype (M&P) and volume submitter (VS)) defined contribution plans that were restated for changes in plan qualification requirements listed in Notice 2010-90 (2010 Cumulative List) and that were filed with the IRS during their second submission period under the remedial amendment cycle under Rev. Proc. 2007-44.

The IRS expects to issue the letters on March 31, 2014, or as soon as possible thereafter. Employers using these pre-approved plan documents to restate a plan for the plan qualification requirements on the 2010 Cumulative List will be required to adopt the plan document by April 30, 2016.

In addition, beginning May 1, 2014, and ending April 30, 2016, the IRS will accept applications for individual determination letters from employers under the second six-year remedial amendment cycle for defined contribution pre-approved plans.

The end of a pre-approved defined contribution plan’s remedial amendment cycle with respect to the changes in plan qualification requirements on the 2010 Cumulative List is April 30, 2016. An adopting employer whose defined contribution plan is eligible for the six-year remedial amendment cycle under section 17 of Rev. Proc. 2007-44 and who adopts, by April 30, 2016, an M&P or VS defined contribution plan that was approved based on the 2010 Cumulative List, will be considered to have adopted the plan within the employer’s six-year remedial amendment cycle.

Source: IRS Announcement 2014-16.

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