New Two-Year Period to Adopt Restated Pre-approved DC Plans
April 30, 2016, is the date by which employers using pre-approved 401(k), profit-sharing or other defined contribution plan documents must adopt plan documents restated for the 2010 Cumulative List (the "PPA restatement") (Announcement 2014-16). Most opinion and advisory letters for the latest round of pre-approved defined contribution plans were issued on March 31, 2014.
Determination letters for employers adopting a pre-approved plan
Most employers do not need to apply for a separate IRS determination letter for a pre-approved plan. Applications for individual determination letters for pre-approved defined contribution plans are due by April 30, 2016, in the limited circumstances when an individual letter is appropriate.
M&P plans - An employer who adopts a master & prototype plan (standardized or non-standardized) may not apply for its own determination letter on Form 5307. Instead, the employer should rely on the approval letter issued to the plan sponsor.
VS plans - An adopting employer who made limited modifications to its volume submitter plan may apply for a determination letter on Form 5307, Application for Determination for Adopters of Modified Volume Submitter Plans (instructions). If the modifications are extensive, causing the plan to be treated as an individually designed plan, the employer must instead file Form 5300, Application for Determination for Employee Benefit Plan.
See Revenue Procedure 2015-6, Sections 8 and 9, for more information on determination letter applications for employers using pre-approved plan documents.
- Pre-Approved Retirement Plan Adopting Employers FAQs
- Adopting Employers
- Determination, Opinion and Advisory Letters
- List of Pre-approved Plans