Determination, Opinion and Advisory Letter for Retirement Plans – Tips for Expediting the Determination, Opinion and Advisory Letter Process

Listed below are several tips, which, if followed, should help speed up the processing of the determination letter applications.

Tips for Form 5300 and 5307 filers:

1. Cover Letter- Include a cover letter in addition to all other submission materials, to alert us to significant and relevant information for the plan being submitted, including:
   
   
   • whether the application is being filed on or off-cycle, identifying any unique circumstances such as “special ruling request” or urgent business needs for which expedited treatment is requested;
     
     
   • whether the plan is part of a controlled or affiliated service group, part of a multiple employer plan arrangement or that it is being submitted with a related plan (include the tax identification and plan numbers); and
     
     
   • if the plan was involved in a merger or consolidation of plan assets.
     
     
2. Proper User Fee - In determining the appropriate user fee, some applicants focus on the Form being submitted (for example, 5300, 5307, 5310) and overlook the fact that a different user fee is required if a determination is being requested on the Average Benefits Test or the General Test. If eligible for user fee exemption, the certification on Form 8717, User Fee for Employee Plan Determination, Opinion, and Advisory Letter Request, must be signed and dated. Stamped signatures are not acceptable.
   
   
3. Form 2848 - Power of Attorney - For volume submitters, identify the volume submitter practitioner in Part I, line 2 (Representative) of Form 2848, Power of Attorney and Declaration of Representative (instructions) and include his or her signature in Part II (Declaration of Representative).
   
   
4. Prior Determination Letter - Include the last favorable determination letter issued to the plan sponsor with the application. If the plan has never received a prior determination letter, provide signed and dated copies of all prior plan documents. For adopters of pre-approved plans using adoption agreements, include only the agreements and applicable opinion/approval letters. See the EP Determinations Quality Assurance Bulletin (Sept. 8, 2006) for additional guidance. Also, include the plan’s current Form 8905, Certification of Intent to Adopt a Pre-approved Plan, if applicable.
   
   
5. Pre-approved plan adopters- If your plan is maintained by using a pre-approved plan provided by a sponsor, include the appropriate approval letter for the plan documents and write the letter number from your prior approval letter on the plan document. Also, include the plan’s current Form 8905, Certification of Intent to Adopt a Pre-approved Plan, if applicable.
   
   
6. Plan Documents - Include a copy of the plan and adoption agreement and all amendments since the last determination letter. If a volume submitter uses an adoption agreement, a copy of the associated plan must also be included. Ensure that the copies submitted include execution dates and signatures. The plan document must be restated for all current guidance on the applicable Cumulative List associated with the filing. For example, individually designed plans (and “working copy” depictions thereof) must incorporate all new law requirements into a single unitary restatement document. Pre-approved plan adopters should submit the most recently approved version of the volume submitter document. Interim and discretionary amendments should also be submitted, except for adopters of pre-approved plans which carry current opinion/advisory letters.
   
   
7. Other Supplemental Documents – Include all other pertinent documents, such as merger agreements, compliance statements or collective bargaining agreements referenced in the plan document.
   
   
8. Employer Identification Number (EIN) - Use the employer identification number of the plan sponsor and not the associated trust.
   
   
9. Volume Submitter Modifications - Include either a list of modifications (added, deleted or modified) to the volume submitter specimen plan identifying the plan sections affected, or a certification that the plan submitted is word-for-word identical to the specimen plan.
   
   
10. Submission Requirements - There are new submission procedures for individually designed plans, beginning February 1, 2006. A summary of the new submission procedures for individually designed plans is contained in New Submission Procedures for Pre-Approved Plans and Individually Designed Plans.
    
    Under these new procedures, sponsors of individually designed plans will submit applications for determination letters once every five years, under a staggered system of 5-year cycles. Not all individually designed plans have the same cycle, so be sure that the plan you are submitting is submitted in the appropriate cycle.
    
    Applications for determination letters for individually designed plans that are filed on or after February 1, 2006 will be reviewed taking into account the requirements of EGTRRA as well as other changes in qualification requirements and guidance identified on the applicable cumulative list.
    
    
11. Notice to Interested Parties - If you answer "yes" to the applicable "Notice to Interested Parties" question on the application form, a copy of the notice is not required to be submitted with the application.
    
    
12. Attachments Relating to Application Questions – Some questions on the application require supplemental explanatory information, such as a controlled group statement for employers maintaining plans on behalf of a controlled group of affiliated employers. Ensure that your application includes all required supplemental material.
    
    
13. Multiple Plan Information (Form 5307 line 9) - If answered in the affirmative, the file should contain a statement listing the name, type, form and number of the plan; whether each plan has received a determination letter or has an application pending; and whether there are paired plans. If applicable, indicate the serial number of the letter issued for the paired plan.
    

Tips for Form 5310 filers:

1. Board of Director Resolution - Include a copy of the resolution or other appropriate documentation formally terminating the plan. The date of the resolution must precede the date of termination.