4.72.1  Overview of Employee Plans Technical Guidelines

Manual Transmittal

July 15, 2013

Purpose

(1) This transmits a complete rewrite of IRM 4.72.1, Employee Plans Technical Guidelines, Overview of Employee Plans Technical Guidelines.

Material Changes

(1) IRM 4.72.1 has been renamed from Miscellaneous Employee Plans Issues to Overview of Employee Plans Technical Guidelines.

(2) Material in the following subsections has been updated and moved to new IRM 4.72.20, Unrelated Business Activities:

  • IRM 4.72.1.2, Unrelated Business Activity

  • IRM 4.72.1.2.1, Examination Steps

  • IRM 4.72.1.3, Unrelated Debt-Financed Income

  • IRM 4.72.1.3.1, Examination Steps

  • IRM 4.72.1.4, Form 990-T

  • IRM 4.72.1.4.1, Only One $1.000 Specific Deduction

  • IRM 4.72.1.4.2, Statue of Limitations

  • IRM 4.72.1.4.3, Failure to File Information Returns

Effect on Other Documents

IRM 4.72.1, Employee Plans Technical Guidelines, Miscellaneous Employee Plans Issues dated September 12, 2006 is superseded.

Audience

Tax Exempt and Government Entities (TEGE) Employee Plans Personnel

Effective Date

(07-15-2013)

TE/GE (Employee Plans)
Robert Choi
Director, Employee Plans
Tax Exempt and Government Entities

4.72.1.1  (07-15-2013)
Overview of Employee Plans Technical Guidelines

  1. This IRM provides an introduction to the material in IRM 4.72, Employee Plans Technical Guidelines, which addresses topics relating to qualified retirement plans.

  2. The issues addressed provide a technical discussion along with suggestions for examining each issue, labeled Examination Steps. Each topic includes a discussion of the applicable authorities.

  3. The guidelines address issues for which there is an established principle of law, or where the answer is clear or reasonably certain. This applies generally where regulations or other published guidance has been issued.

  4. The guidelines are for reference and use by Employee Plans (EP) personnel including specialists, actuaries, reviewers, and appropriate supervisory and management personnel. They may also be used as training aids for new employees.

  5. Because of the diversity of conditions encountered during an examination, these guidelines are not devised to be all inclusive or restrictive. They should be used as a guide and a reference. Consequently, the techniques identified may be modified based on the actual examination issues encountered. It is expected that the guidelines will help the examiner decide what areas to concentrate on and what issues to raise with respect to a particular plan. Given the purpose of these guidelines, they cannot be, nor are they intended to set a precedent or establish a comprehensive statement of the Service’s legal position on the issues covered herein. They are not to be relied upon or cited as authority to taxpayers. These guidelines are being issued for the sole purpose of assisting the examiner in performing an examination of certain issues for which it was believed guidelines would be helpful. It is not expected that each issue discussed in these guidelines will be relevant in every examination.

  6. Another source for guidance on topics relating to qualified plans under IRC 401(a)(4) is found in the following Alert Guidelines. Although these topics relate to qualification matters, Explanations substantively address the pertinent issues.

    Worksheet Number Worksheet Name Explanation
    1 Form 5622, Employee Benefit Plan, Minimum Participation Standards; Form 6040, Employee Plan Deficiency Checksheet Attachment #1, Minimum Participation Standards Publication 6388, Employee Benefit Plans, Explanation No. 1, Minimum Participation Standards
    2 Form 5623, Employee Benefit Plan, Minimum Vesting Standards Defined Contribution Plans; Form 6041, Employee Plan Deficiency Checksheet Attachment #2, Minimum Vesting Standards Publication 6389, Employee Benefit Plans, Explanation No. 2, Minimum Vesting Standard Defined Contribution Plan
    2A Form 5624, Employee Benefit Plan, Defined Benefit Plans Minimum Vesting Standards; Form 8401, Employee Plan Deficiency Checksheet Attachment #2A (Cycle A), Minimum Vesting Standards for Defined Benefit Plans Publication 4962, Employee Benefit Plans, Explanation No. 2A, Minimum Vesting Standards Defined Benefit Plans
    3 Form 5625, Employee Benefit Plan, Joint and Survivor; Form 6042, Employee Plans Deficiency Checksheet Attachment #3, Joint and Survivor Publication 6391, Employee Benefit Plans, Explanation No. 3, Joint & Survivor Determination of Qualification
    4 Form 5626, Employee Benefit Plans, Miscellaneous Provisions; Form 6043, Employee Plan Deficiency Checksheet Attachment #4. Miscellaneous Publication 6392, Employee Benefit Plans, Explanation No. 4, Miscellaneous Provisions
    5 Form 5627, Employee Benefit Plans, Coverage and Nondiscrimination Requirements: Defined Contribution Plans; Form 6045, Employee Plan Deficiency Checksheet Attachment Number 5, Coverage and Nondiscrimination Requirements Defined Contribution Plans Publication 6393, Employee Benefit Plans, Explanation No. 5, Coverage and Nondiscrimination Requirements Defined Contribution Plans
    5A Form 9638. Employee Benefit Plans, Coverage & Nondiscrimination Requirements Defined Benefit Plans; Form 9640, Employee Plans Deficiency Checksheet Attachment Number 5A, Coverage and Nondiscrimination Requirements Defined Benefit Publication 4965, Employee Benefit Plans, Explanation No. 5A, Coverage and Nondiscrimination Requirement Defined Benefits Plans
    5B Form 9639, Employee Benefit Plans, Permitted Disparity (Worksheet 5B Determination of Qualification); Form 9637, Employee Plan Deficiency Checksheet Attachment # 5B, Permitted Disparity Publication 4964, Employee Benefit Plans, Explanation No. 5B, Permitted Disparity
    5C   Publication 4963, Employee Benefit Plans, Explanation No. 5C, Coverage & Nondiscrimination Requirements General Tests and Average Benefit Test
    6 Form 8384, Employee Benefit Plans, Limitation on Contribution and Benefits; Form 6044 Employee Plan Deficiency Checksheet Attachment #6, Limitations on Contributions and Benefits Publication 7001, Employee Benefit Plans, Explanation No. 6, Limitations On Contributions and Benefits
    7 Form 8385, Employee Benefit Plan Top-Heavy Requirements, Form 8397, Employee Plans Deficiency Checksheet Attachment #7, Top-Heavy Plans Publication 7002, Employee Benefit Plans, Explanation No. 7, Top-Heavy Requirements
    8 Form 8386, Employee Benefit Plan, Employee Leasing, Form 8398, Employee Plans Deficiency Checksheet Attachment #8, Employee Leasing Publication 7003, Employee Benefit Plans, Explanation No. 8, Employee Leasing
    9 Form 8387, Employee Benefit Plan, Required Distributions; Form 8399, Employee Plan Deficiency Checksheet Attachment #9, Required Plan Distributions Publication 7004, Employee Benefit Plans, Explanation No. 9, Required Distributions
    10 Form 8388, Employee Benefit Plan Affiliated Service Groups; Form 8400, Employee Plans Deficiency Checksheet Attachment #10, Affiliated Service Groups Publication 7005, Employee Benefit Plans, Explanation No. 10, Affiliated Service Groups
    11 Form 8799, Employee Benefit Plan, Employee Matching Contributions; Form 9416, Employee Plans Deficiency Checksheet Attachment #11, Section 401(m) Requirements Publication 7334, Employee Benefit Plans, Explanation No. 11, Employee and Matching Contributions
    12 Form 9002, Employee Benefit Plan, Section 401(k) Requirements; Form 9417, Employee Plans Deficiency Checksheet Attachment #12, Section 401(k) Requirements Publication 7335, Employee Benefit Plans, Explanation No. 12 , Section 401(k) Requirements
    13 Form 13069, Employee Benefit Plan, Section 401(h); Form 13070, Employee Plans Deficiency Checksheet Attachment #13, Section 401(h) Publication 11433, Employee Benefit Plans, Explanation No. 13, Section 401(h) Determination of Qualification


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