EP Determination Letter Resource Guide - Pre-Approved and Individually Designed Plans
Pre-Approved Plans
There are two types of pre-approved plans: Master and Prototype (M&P) and Volume Submitter (VS) plans. M&P plans are categorized as either Standardized or Non-Standardized.
Master and Prototype (M&P)
Plans that are pre-approved by the Service under the M&P program. A M&P consists of a basic plan document and an adoption agreement. The basic plan document contains all non-elective provisions. The adoption agreement contains the options which may be selected by an adopting employer. A M&P may be standardized or non-standardized.
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Standardized
A M&P which, due to limited choices, is designed to satisfy the coverage requirements of Internal Revenue Code section 410(b) and the nondiscrimination requirements of Internal Revenue Code section 401(a)(4).
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Non-Standardized
A M&P which provides additional plan design choices and elective provisions but does not offer the security of a standardized plan.
Volume Submitter (VS Plans)
Plans that are pre-approved plans by the Service under the Volume Submitter program. A VS plan consists of a specimen plan document and may include an adoption agreement. A VS plan offers additional flexibility not offered by the M&P plans.
Individually Designed Plans
Plans that have a plan document which is tailored to meet the particular needs of an employer by providing the maximum amount of flexibility in plan design.
