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Extension of the Remedial Amendment Period for EGTRRA

In General

Revenue Procedure 2004-25 extends the remedial amendment period under section 401(b) of the Code with respect to certain disqualifying provisions until the end of the EGTRRA remedial amendment period. The EGTRRA remedial amendment period is the remedial amendment period under section 401(b) during which retroactive remedial amendments for the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16, (EGTRRA) may be adopted. The EGTRRA remedial amendment period is available only if a plan has been timely amended in good faith for EGTRRA. (See Notice 2001-42.) The EGTRRA remedial amendment period will not end before the end of a plan’s 2005 plan year.

The extension in Rev. Proc. 2004-25 applies only to certain disqualifying provisions that are described in section 1.401(b)-1(b)(1) of the Income Tax Regulations.  Disqualifying provisions described in section 1.401(b)-1(b)(1) include a provision of a new plan, the absence of a provision from a new plan, or an amendment to an existing plan which causes the plan to fail to satisfy the requirements of the Code applicable to the qualification of the plan as of the date the plan or amendment is first made effective. The extension in Rev. Proc. 2004-25 applies only to those disqualifying provisions described in section 1.401(b)-1(b)(1) that are put into effect (in the case of new plans) or adopted (in the case of existing plans) after December 31, 2001.  Thus, for example, in the case of a new plan that is put into effect after December 31, 2001, the remedial amendment period for all disqualifying provisions of the plan will not end earlier than the end of the plan’s 2005 plan year.  Likewise, if an amendment to an existing plan that is adopted after December 31, 2001 causes the plan to fail to be qualified, the remedial amendment period for the disqualifying provision will not end before the end of the plan’s 2005 plan year.

Extension Does Not Apply to GUST Amendments

The extension in Rev. Proc. 2004-25 does not apply to GUST amendments to existing plans.  Plan provisions that had to be amended for GUST are disqualifying provisions described in section 1.401(b)-1(b)(3), which allows the Commissioner to designate certain plan provisions affected by changes in the Code’s qualification requirements as disqualifying provisions.  (See Rev. Proc. 97-41.)  The GUST remedial amendment period ended on the later of February 28, 2002 or the end of the 2001 plan year, for individually designed plans, and even later for M&P and volume submitter plans.  Rev. Proc. 2004-25 does not extend the remedial amendment period for disqualifying provisions described in section 1.401(b)-1(b)(3).  Thus, if a plan sponsor failed to amend its plan for GUST within the GUST remedial amendment period, Rev. Proc. 2004-25 does not provide relief.  Likewise, if a plan sponsor attempted to timely amend its plan for GUST, but the amendment was defective with respect to the requirements of GUST and the plan sponsor did not timely apply for a determination letter, then the plan was not amended for GUST within the GUST remedial amendment period and Rev. Proc. 2004-25 does not provide relief.

Does Not Apply to Section 401(a)(9) or Other Required Amendments

Finally, Rev. Proc. 2004-25 does not extend the time by which plans must be amended to comply with final regulations under section 401(a)(9) (required minimum distributions) or with Rev. Rul. 2001-62 (applicable mortality table) or Rev. Rul. 2002-27 (deemed section 125 compensation).  The Service has provided a remedial amendment period, co-extensive with the EGTRRA remedial amendment period, for adopting retroactive remedial amendments with respect to each of these guidance items.  However, in each case, the remedial amendment period is conditioned on the adoption of plan amendments by the time specified in the guidance (or, in the case of the final section 401(a)(9) regulations, in Rev. Proc. 2002-29, as modified by Rev. Proc. 2003-10).  Rev. Proc. 2004-25 does not extend these times.   Rev. Proc. 2004-25 also does not extend the time for adopting plan amendments for final regulations on retroactive annuity starting dates under section
417(a)(7).

Summary

The effect of Rev. Proc. 2004-25 is to ensure that plan sponsors do not need to apply for more than one determination letter during the EGTRRA remedial amendment period simply because they have put a plan into effect or adopted voluntary plan amendments after December 31, 2001.  The revenue procedure does not extend any other existing plan amendment or determination letter submission deadlines. 

Page Last Reviewed or Updated: 21-Mar-2014