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Retirement News for Employers - Winter 2012 - Time to Adopt a New Defined Benefit Plan

Employers who have pre-approved defined benefit plans generally must sign and date (adopt) their restated plan, approved for EGTRRA, by April 30, 2012, to be eligible for retroactive remedial amendment and reliance.

This deadline also applies to employers who have:

  • individually designed defined benefit plans, and
  • signed Form 8905, Certification of Intent to Adopt Pre-approved Plan, prior to the end of their plan’s 5-year EGTRRA remedial amendment cycle.

If you don’t adopt an updated defined benefit plan by April 30, your plan may lose its qualified status for tax benefits.

Your new defined benefit plan will have a favorable letter from the IRS dated March 31, 2010, or later. The letter states that the plan has been reviewed for changes in the plan qualification requirements (EGTRRA and the 2006 Cumulative List).

Generally, employers who adopt pre-approved plans can rely on the plan’s opinion or advisory letter for assurance that the plan’s form meets most qualification requirements. Employers seeking individual determination letters for pre-approved defined benefit plans generally must file their applications by April 30, 2012 (the end of the 6-year EGTRRA remedial amendment cycle for pre-approved defined benefit plans).

Page Last Reviewed or Updated: 26-Nov-2013