7.11.5  Proper Use of Determination Letter Caveats

Manual Transmittal

September 24, 2014

Purpose

(1) This transmits revised IRM 7.11.5, Employee Plans Determination Letter Program, Proper Use of Determination Letter Caveats.

Material Changes

(1) IRM 7.11.5.1, EP Determination Letter Caveats Overview, is updated to remove the reference to QAB 2010-1 and updated to include all three exceptions to the usage of EDS for generating the favorable determination letter.

(2) IRM 7.11.5.2, General Caveat Rules for Determination Letters is retitled, Letter 2002 for Individually Designed Plans.

(3) IRM 7.11.5.3, DL for GUST (Letter 835) is obsolete. The previous information is deleted in its entirety. The subsection is retitled, Letter 2002 for Pre-Approved Plans, and updated for current procedures.

(4) IRM 7.11.5.4, DL for the Staggered Cyclical Approach (Letter 2002) is updated and moved to IRM 7.11.5.2, Letter 2002 for Individually Designed Plans.

(5) IRM 7.11.5.4.1, Cash Balance Moratorium First Five-Year Remedial Amendment Cycle DL. The subsection is deleted and the information is moved to IRM 7.11.5.2, Letter 2002 for Individually Designed Plans.

(6) IRM 7.11.5.4.2, Discretionary and Interim amendments on Letter 2002. The subsection is deleted and the information is moved to IRM 7.11.5.2, Letter 2002 for Individually Designed Plans.

(7) IRM 7.11.5.5, DL 2002 for Individually Designed Plans. The subsection is deleted and the information is moved to IRM 7.11.5.2, Letter 2002 for Individually Designed Plans.

(8) IRM 7.11.5.6, DL 2002 for DC Pre-Approved Plans. The subsection is deleted and the information is moved to IRM 7.11.5.3, Letter 2002 for Pre-Approved Plans.

(9) IRM 7.11.5.6.1, Six-Year Cycle Continuing Basis. The subsection is deleted as the information is obsolete.

(10) IRM 7.11.5.6.2, Six-Year Cycle Temporary Basis. The subsection is deleted as the information is obsolete.

(11) IRM 7.11.5.6.3, Six-Year Cycle Switched to Five-Year Cycle. The subsection is deleted as the information is obsolete.

(12) IRM 7.11.5.7, DL 2002 for Defined Benefit Pre-Approved Plans. The subsection is deleted and the information is moved to IRM 7.11.5.3, Letter 2002 for Pre-Approved Plans.

(13) IRM 7.11.5.8, DL 1132 for Terminating Plans. The subsection is deleted and the information is moved to IRM 7.11.5.4, Letter 1132 for Individually Designed Plans and IRM 7.11.5.5, Letter 1132 for Pre-Approved Plans.

(14) IRM 7.11.5.8.1, Amendments Adopted Before LFDL for Terminating Plans. The subsection is deleted and the information is moved to IRM 7.11.5.4, Letter 1132 for Individually Designed Plans and IRM 7.11.5.5, Letter 1132 for Pre-Approved Plans.

(15) Exhibit 7.11.5-1, DL for GUST (Letter 835) is obsolete. The previous information is deleted in its entirety. The exhibit is retitled, DL for the Staggered Cyclical Approach (Letter 2002), and updated for current procedures.

(16) Exhibit 7.11.5-2, DL for the Staggered Cyclical Approach (Letter 2002). The exhibit is retitled, Letter 1132 for Terminating Plans, and updated for current procedures.

(17) Exhibit 7.11.5-3, DL 1132 for Terminating Plans. The information is moved to Exhibit 7.11.5-2, Letter 1132 for Terminating Plans.

Effect on Other Documents

IRM 7.11.5, dated July 16, 2013, is superseded.

Audience

Tax Exempt and Government Entities (TE/GE) Employee Plans Personnel

Effective Date

(09-24-2014)

Robert Choi
Director, Employee Plans
Tax Exempt and Government Entities

7.11.5.1  (09-24-2014)
EP Determination Letter Caveats Overview

  1. This IRM provides procedural guidance for caveats to all employees who issue Employee Plans (EP) determination letters (DL).

  2. This IRM supplements IRM 7.13.5, Employee Plans Automated Processing Procedures, Letter Generation, which provides procedures for Employee Plans/Exempt Organizations Determination System (EDS) Letter Generation subsystem (LGS) and contains a copy of the text for each letter.

  3. A DL is the end product that results from the decision that a plan document is qualified. The determination specialist reviews the applicable Form 5300 series application, the plan and trust document, and executed/proposed amendments to determine if the plan document meets qualification requirements under IRC 401(a). If the determination specialist determines that the plan is qualified, a favorable determination letter (FDL) is created. The caveats contain the date(s) the plan, trust and amendments were executed, cover letter dates for proposed amendments, and other applicable explanations for certain types of requests.

  4. The FDL provides a historical record of the qualification issues and can be useful for future determination requests or plan examinations. Therefore, it is critical to the Service that the FDL reflects an accurate and reliable date for each amendment that was considered, whether executed or proposed.

  5. EDS continues to be the system used for generating the FDL; even for cases worked on the Tax Exempt Determination System (TEDS).

  6. There are three exceptions to the usage of EDS for generating the FDL. The exceptions are for auto-closure letters created through Correspondex. These letters are the Letter 4577 (DO/CG) for Form 5307 auto-closures, Letter 5289C (DO/CG) for Form 5310 auto-closures, and the Letter 5290C (DO/CG) for Form 5300 auto-closures. In the rare instance that a Letter 4577 is created in EDS, use caveats 7 and 8. Caveat 7 should have a variable showing the year for the applicable Cumulative List (CL) and caveat 8 should indicate "contribution" or "benefit," depending on whether the plan is a defined contribution (DC) or defined benefit (DB) plan.

7.11.5.1.1  (07-26-2012)
Scope of Reliance on a Determination Letter

  1. All FDLs issued through EDS are accompanied by a Publication 794, Favorable Determination Letter which provides the limitations on the scope of reliance on the DL.

  2. Publication 794 provides that the DL applies only to the employer on whose behalf the application is made. Therefore, for controlled groups or affiliated service group of employers adopting the same plan, the letter will be issued only to the employer who initiated the application.

7.11.5.2  (09-24-2014)
Letter 2002 for Individually Designed Plans

  1. Use the chart in Exhibit 7.11.5-1, DL for the Staggered Cyclical Approach (Letter 2002), for assistance in selecting the appropriate selective paragraph(s).

  2. The Letter 2002 for regular on-cycle individually designed plans (plans that fall under Rev. Proc. 2007-44 sections 9 and 10) must include the appropriate caveat from the below table that identifies the applicable Cumulative List (CL) which is the basis of the determination and provide the expiration date of the letter:

    Cycle Caveat Cycle Caveat
    A1 13 A2 67
    B1 14 B2 68
    C1 15 C2 69
    D1 16 D2 70
    E1 17 E2 71
  3. Deemed on-cycle applications consist of new individually designed plans and certain off-cycle applications submitted in accordance with published guidance (further described in Rev. Proc. 2007-44 section 14.02). The Letter 2002 for deemed on-cycle individually designed plans must include caveats 20 and 21 from the table below with the appropriate variables:

    20 Off/Short cycle (requires caveats 20 and 21) Expires at the end of the first five-year remedial amendment cycle that ends more than 12 months after the application was submitted Expiration date (Year-20XX) format
    21 Off/Short cycle (requires caveats 20 and 21) Considered the Cumulative List required for on-cycle applications during the period the application was submitted Cumulative List (20XX) format
  4. If an application is received with a Social Security Number (SSN) because the employer has not received an Employer Identification Number (EIN), and subsequently the employer submits the EIN, replace the SSN with the EIN. The DL will include caveats 24 and 25. Caveat 24 requires input of the year of expiration which is based on the last digit of the EIN that was assigned. Caveat 25 requires input of the year of the applicable CL under which the plan was reviewed.

  5. For applications submitted during the first five-year cycle for individually designed plans, the Letter 2002 is to include the date(s) of all discretionary and interim amendments that do not pre-date the date of the LFDL even if certain amendments were not ruled on. Amendments submitted by the applicant that were adopted on behalf of the employer by a pre-approved plan sponsor/practitioner will also be included.

    Note:

    Do not caveat for amendments adopted prior to the plan's original effective date.

    Exception:

    For cash balance moratorium cases that received a Letter 835 under Notice 2007-6, the Letter 835 will be dated later than the date the sponsor adopted the amendments required to comply with the first five-year RAC. Letter 2002 will include the date(s) of the restated document and all discretionary and interim amendments adopted to comply with the applicable cumulative list for the cycle under which the application was submitted without regard to the date of the Letter 835.

  6. For applications submitted during the second and subsequent five-year cycles, the letter generally includes caveats for interim amendments, discretionary amendments and plan restatements that become effective during the applicable five-year cycle. However, the letter does not cover qualification requirements that become effective in a calendar year after the calendar year in which the 12-month submission period begins with respect to the applicable Cumulative List.

    Example:

    The letter for applications submitted during the period beginning February 1, 2014 will be based on the 2013 Cumulative List. Therefore interim and discretionary amendments first effective in 2015 will not be included. In other words, Letter 2002 will include the date(s) of the restated document and all discretionary amendments effective during the applicable five-year cycle and all interim amendments which comply with the applicable CL for the cycle under which the application was submitted, without regard to the date of the LFDL.

    Note:

    To emphasize that some amendments may not have been ruled on, all Letters 2002 automatically include caveat 10 which states: "We are not ruling on any guidance published, or any statutes enacted, after the issuance of the Cumulative List (unless the item has been identified in the Cumulative List) for the cycle under which this application was submitted."

  7. For initial applications that are filed with their initial remedial amendment cycle in accordance with section 14.04 of Rev. Proc. 2007-44, the determination letter should include the initial adoption date of the plan document and all subsequent amendments applicable for the extended initial remedial amendment cycle.

7.11.5.3  (09-24-2014)
Letter 2002 for Pre-Approved Plans

  1. Use the chart in Exhibit 7.11.5-1, DL for the Staggered Cyclical Approach (Letter 2002), for assistance in selecting the appropriate selective paragraph(s).

  2. The Letter 2002 for pre-approved plans should include a caveat which states which Cumulative List (CL) the application was ruled on and the expiration date of the letter. If the application is submitted during the two-year period announced by the Service, Letter 2002 should include caveat 25 with a variable for the applicable CL, and caveat 26 for DC plans or caveat 27 for DB plans, to indicate the expiration date of the letter.

    Exception:

    For applications that are eligible for the six-year cycle on a temporary basis and switch to the five-year cycle, caveats 20 and 21 should be used. Each of the two caveats requires input of one variable. Caveat 20 requires input for the year of expiration and caveat 21 requires the year of the applicable CL under which the plan was reviewed.

  3. For applications submitted during the first six-year cycle for pre-approved plans, the Letter 2002 is to include the date(s) of all discretionary and interim amendments that do not pre-date the date of the LFDL even if certain amendments were not ruled on. Amendments submitted by the applicant that were adopted on behalf of the employer by a pre-approved plan sponsor/practitioner will also be included.

    Note:

    Do not caveat for amendments adopted prior to the plan's original effective date.

  4. For applications submitted during the second and subsequent six-year cycles, the letter only includes caveats for amendments and restatements that are effective for the applicable submission period. In other words, Letter 2002 will include the date(s) of the restated document and all discretionary and interim amendments adopted to comply with the applicable CL for the cycle under which the application was submitted, without regard to the date of the LFDL.

    Note:

    To emphasize that some amendments may not have been ruled on, all Letters 2002 automatically include caveat 10 which states: "We are not ruling on any guidance published, or any statutes enacted, after the issuance of the Cumulative List (unless the item has been identified in the Cumulative List) for the cycle under which this application was submitted."

7.11.5.4  (09-24-2014)
Letter 1132 for Individually Designed Plans

  1. Letter 1132 (DO/CG) is issued for applications submitted on a Form 5310, Application for Determination for Terminating Plan. Use the chart in Exhibit 7.11.5-2, Letter 1132 for Terminating Plans, for assistance in selecting the appropriate selective paragraph(s).

  2. For applications submitted during the first five-year RAC, the Letter 1132 should only include the date(s) of all discretionary and interim amendments that do not pre-date the date of the LFDL.

    Exception:

    The Letter 1132 should also include the date(s) of amendments adopted to comply with EGTRRA and/or the IRC 401(a)(9) Treasury regulations, even if they were adopted before the date of the LFDL.

  3. For applications submitted during the second and subsequent five-year RACs, the Letter 1132 should only include the date(s) of all discretionary and interim amendments adopted since the beginning of the plan’s five-year cycle that includes the date of plan termination to comply with all law in effect on the date of termination. These amendments should be included even if they pre-date the LFDL.

    Note:

    If the sponsor did not receive a DL (or could not rely on an opinion or advisory letter) for a previously closed RAC, the sponsor must submit all required interim amendments for the closed RAC or RACs and all discretionary amendments that became effective during the closed RAC or RACs but the Letter 1132 will still only include the date(s) for the amendments that become effective during the five-year cycle that includes the date of termination.

7.11.5.5  (09-24-2014)
Letter 1132 for Pre-Approved Plans

  1. Letter 1132 (DO/CG) is issued for applications submitted on a Form 5310, Application for Determination for Terminating Plan. Use the chart in Exhibit 7.11.5-2, Letter 1132 for Terminating Plans, for assistance in selecting the appropriate selective paragraph(s).

  2. For applications submitted during the first six-year RAC, the Letter 1132 should only include the date(s) of all discretionary and interim amendments that do not pre-date the date of the LFDL.

    Exception:

    The Letter 1132 should also include the date(s) of amendments adopted to comply with EGTRRA and/or the final Treasury regulations under IRC 401(a)(9), even if they were adopted before the date of the LFDL.

  3. For applications submitted during the second and subsequent six-year RACs, the Letter 1132 should only include the date(s) of all discretionary and interim amendments adopted since the beginning of the plan’s six-year cycle that includes the date of plan termination to comply with all law in effect on the date of termination. These amendments should be included even if they pre-date the LFDL.

    Note:

    If the sponsor did not receive a DL (or could not rely on an opinion or advisory letter) for a previously closed RAC, the sponsor must submit all required interim amendments for the closed RAC or RACs and all discretionary amendments that became effective during the closed RAC or RACs but the Letter 1132 will still only include the date(s) for the amendments that become effective during the five-year cycle that includes the date of termination.

7.11.5.6  (09-24-2014)
Additional Guidance / Common Errors

  1. A 7000 and 9000 series caveat may be used in situations where the current EDS caveats are not sufficient. Unless the situation is described in this IRM 7.11.5, Proper Use of Determination Letter Caveats, the specialist should consult with the group manager or contact EP Determinations Quality Assurance Staff (QAS) prior to adding a 7000 or 9000 series caveat. Also, never attach a document or other information that has not been input on EDS because EDS is the system of record for DL applications.

    Note:

    Include caveats 5997 and 8502 on any DL which contains a 7000 or 9000 series caveat to indicate that there is an addendum on a third page.

  2. In order to address inconsistencies in the treatment of trust documents due to existing caveat language and the need to limit created caveats, the following rules apply:

    1. In the event that a trust document is adopted prior to the initial plan document, use a 9001 caveat which reads: "This determination letter applies to the trust document adopted on ____________."

    2. If the trust is adopted on the same date as the initial plan, use caveat 40 on the Letter 2002. Caveat 40 is intended to cover both the adoption of the plan and the trust document.

    3. If the trust is adopted after the initial plan document, the date of adoption should be included on the Letter 2002 with the amendment caveats 41 - 43.

  3. Any governmental entity that applies for a DL will receive a special caveat indicating that the DL is based on the plan sponsor’s assertion that the plan is a government plan under IRC 414(d). Use caveat 60 for Letter 2002, or caveat 58 for Letter 1132.

    Note:

    If the governmental plan is submitted with material that is not adopted, i.e., statute based, add caveat 66 to Letters 1132 and 2002.

  4. For the first five-year remedial amendment cycle (RAC), the adoption dates of amendments that were included as proposed amendments on the LFDL should be included on the current FDL only if they were adopted after the date of the LFDL. For the second and subsequent five-year RACs, the adoption dates of amendments that were included as proposed amendments on the LFDL should be included on the current FDL only if they were adopted to comply with the applicable CL for the current cycle.

  5. If an application is submitted which contains documentation of a plan merger, only the amendments for the surviving plan are included on the DL. The DL for the surviving plan may be relied upon with respect to whether the merged plans were timely and correctly amended for new tax law.

  6. Dual qualified plans have trusts sited in the U.S. but are intended to qualify under the Puerto Rico Code as well as the Internal Revenue Code. The provisions that apply for Puerto Rican employees may not be included in the plan document but should be incorporated into a separate addendum. If the plan includes an addendum for dual qualification, the FDL should include the following 9001 caveat: "This determination letter applies to the provisions that are intended to meet qualification requirements under the Internal Revenue Code, and does not apply to the addendum that is intended to meet qualification requirements under the Puerto Rico Internal Revenue Code."

  7. If a plan indicates that it is a non-electing church plan, the FDL should include the following 9001 caveat: "This determination letter is based solely on your assertion that the plan is entitled to be treated as a church plan under section 414(e) of the Internal Revenue Code."

Exhibit 7.11.5-1 
DL for the Staggered Cyclical Approach (Letter 2002)

EDS Paragraph Number When to use Explanation Variable
13 On-cycle A Expires on January 31, 2012. Considers the 2005 Cumulative List N/A
14 On-cycle B Expires on January 31, 2013. Considers the 2006 Cumulative List N/A
15 On-cycle C Expires on January 31, 2014. Considers the 2007 Cumulative List N/A
16 On-cycle D Expires on January 31, 2015. Considers the 2008 Cumulative List N/A
17 On-cycle E Expires on January 31, 2016. Considers the 2009 Cumulative List N/A
20 Off/Short cycle (requires caveats 20 and 21) Expires at the end of the first five-year remedial amendment cycle that ends more than 12 months after the application was submitted Expiration date (Year-20XX) format
21 Off/Short cycle (requires caveats 20 and 21) Considered the Cumulative List required for on-cycle applications during the period the application was submitted Cumulative List (20XX) format
24 Submitted with an SSN that is subsequently assigned an EIN (requires caveats 24 and 25) Expires on the end of the plan’s first five-year remedial amendment cycle that ends more than 12-months after the application was received. Since the application was filed using a SSN the next five-year RAC will be based on the assigned EIN Expiration date (Year-20XX) format
25 Submitted with an SSN that is subsequently assigned an EIN or pre-approved EGTRRA plans Considered the Cumulative List required for on-cycle applications during the period the application was submitted Cumulative List (20XX) format
26 DC Form 5307 and Pre-approved Form 5300s Adopting employers of pre-approved defined contribution plans that remain on the six-year cycle N/A
27 DB Form 5307 and Pre-approved Form 5300s Adopting employers of pre-approved defined benefit plans that remain on the six-year cycle N/A
29, 30 Foreign trusts Use when a plan is using a foreign trust N/A
31 Used for plans that include IRC 403(b) provisions Ruling only with respect to the IRC 401(a) plan and not with respect to the IRC 403(b) N/A
32 Used with Form 5300 application that include information outlined in section 14 of Rev. Proc. 2014-6 (revised annually) Meets the Affiliated Service Group (ASG) status requirements of IRC 414(m) N/A
33 Used with Form 5300 application that include information outlined in section 14 of Rev. Proc. 2014-6 (revised annually) Does not meet the Affiliated Service Group (ASG) status requirements of IRC 414(m) N/A
34 Used with Form 5300 application that include information outlined in section 14 of Rev. Proc. 2014-6 (revised annually) Meets the Leased Employee status requirements of IRC 414(n) N/A
35 Used with Form 5300 application that include information outlined in section 14 of Rev. Proc. 2014-6 (revised annually) Does not meet the Leased Employee status requirements of IRC 414(n) N/A
40 Used for the initial adoption of the plan and initial separate trust document Indicate the date when the employer executed the initial plan and trust document on the same date; caveat 40 is intended to cover both documents Date (xx/xx/xx or month xx, xxxx)
41 Considers executed amendments for the plan. This caveat also applies to the initial trust document if it is adopted after the date of the initial plan Used for the first RAC to indicate the execution date of each amendment after the initial adoption that has NOT been included on a prior DL.
Used for the second RAC to indicate the execution date of the applicable amendments for the cumulative list for the submission period.
If a separate trust document is adopted after the date of the initial plan document, use caveat 41, do not create a caveat
Date (xx/xx/xx or month xx, xxxx)
42 Additional Amendment Used in conjunction with caveat 41; if the numeric format is utilized, two additional amendments may be added Date (xx/xx/xx or month xx, xxxx)
43 Additional Amendment Used in conjunction with caveats 41 and 42; if the numeric format is utilized, two additional amendments may be added Date (xx/xx/xx or month xx, xxxx)
44 To condition the determination letter on adoption of proposed amendments to the plan Indicate the date of the letter used to submit the proposed amendment. If an undated facsimile is used, the received date on the fax should be used Date (xx/xx/xx or month xx, xxxx)
45 Additional Proposed Amendment Indicate the date of the letter used to submit the proposed amendment. If an undated facsimile is used, the received date on the fax should be used Date (xx/xx/xx or month xx, xxxx)
46 Used to condition determination letter on adoption of proposed restated plan Use date of cover letter or separate correspondence used to submit restated document Date (xx/xx/xx or month xx, xxxx)
47 Proposed amendment(s) or restated plan submitted without a cover letter Considers proposed amendment(s) or restatement submitted with the DL application N/A
48 Working copy Working copy submitted with or during the DL application process N/A
50 Form 5300 submitted with Form 5309 ESOP plan meets the requirements of IRC 4975(e)(7) N/A
51 For plans involved in termination spin-offs or re-establishments Letter conditioned on receiving approval of changes in funding amortization. See IRS DOL Implementation Guidelines dated May 24, 1984 N/A
53 Used with first cycle Form 5300 applications that include information outlined in section 16 of Rev. Proc. 2014-6 (revised annually) Plan meets the requirements of IRC 401(h) and IRC 420 N/A
55 Used with Form 5300 applications that include information outlined in section 10 of Rev. Proc. 2014-6 (revised annually) Multiple employer plans meet IRC 413(c) N/A
57 5300 Partial termination request Based on the information supplied, a determination was made that a partial termination occurred on xxxxxx Date (xx/xx/xx or month xx, xxxx)
58 5300 Partial termination request Based on the information you have supplied, a determination was made that a partial termination did not occur N/A
59 Correction of a prior Letter 2002 (DO/CG) Enter the date of the old letter. The caveat reads: This letter supersedes our letter dated on or about xxxxxx Date (xx/xx/xx or month xx, xxxx)
60 Governmental Plan Indicates that the DL is based on the plan sponsor’s assertion that plan is government plan under IRC 414(d) N/A
62 Used with second cycle Form 5300 applications that include information outlined in section 16 of Rev. Proc. 2014-6 (revised annually) Plan meets the requirements of IRC 401(h) and IRC 420 N/A
66 Form 5300 Governmental Applications submitted with material that is not adopted, i.e., statute based C1=2009 E1=2011 C2=2014
67 On-cycle A for second RAC Expires on January 31, 2017. Considers the 2010 Cumulative List N/A
68 On-cycle B for second RAC Expires on January 31, 2018. Considers the 2011 Cumulative List N/A
69 On-cycle C for second RAC Expires on January 31, 2019. Considers the 2012 Cumulative List N/A
70 On-cycle D for second RAC Expires on January 31, 2020. Considers the 2013 Cumulative List N/A
71 On-cycle E for second RAC Expires on January 31, 2021. Considers the 2014 Cumulative List N/A
5997 Addendum included. Must be used with caveat 8502 when using a 7000 or 9000 series caveat N/A
5998 When a Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization is included with the application Used to indicate a copy of the DL was provided to the authorized Power of Attorney(s) (POA) or other authorized individual. Form 8821 must have an entry in either item 4 or 5 and signature in item 7 N/A
7033 Used for all single and multiemployer collectively bargained plans Indicates that the DL does not provide reliance on CBA or auxiliary agreements incorporated by reference and not part of plan. Applies to addenda, contracts and appendices N/A
8502 Addendum Must be selected with caveat 5997 N/A

Exhibit 7.11.5-2 
Letter 1132 for Terminating Plans

EDS Paragraph Number When to use Explanation Variable
4 Used to indicate the proposed date of plan termination Use the date on the resolution or amendment to terminate the plan Date (xx/xx/xx or month xx, xxxx)
5 Additional caveat for proposed amendments See explanation for caveat 10 Date (xx/xx/xx or month xx, xxxx)
7 Plans involved in termination spin-offs or re-establishments conditioning the letter on receiving approval of changes in funding amortization Use mandated per IRS DOL Implementation Guidelines dated May 24, 1984. See http://tege.web.irs.gov/content/EmpPlansMainWindow/linkedHtmlDocuments/determs/052484A.pdf N/A
6, 9, 8503 These caveats are used in conjunction with a plan that has terminated with assets reverting to the employer The caveats alert the sponsor of certain filing requirements and generate the Benefit Assurance Form that is used with reversion referrals. May not apply to certain tax-exempt entities or governmental plans N/A
10 Used to condition the determination letter on the receipt of proposed amendments to the plan The date of the cover letter used to submit the proposed amendments is entered here. If an undated facsimile is used to transmit the proposed amendment, the received date on the fax should be used Date (xx/xx/xx or month xx, xxxx)
11 Used to indicate the consideration of executed amendments for the plan For the first RAC include each executed amendment that has not been previously included on a prior determination letter.
For the second and subsequent, include executed amendments that become effective during the five-year cycle that includes the date of termination.
Date (xx/xx/xx or month xx, xxxx)
36, 37 Foreign trusts Use when a plan is using a foreign trust N/A
44 Used for terminating ESOP plans that met the requirements of IRC 4975(e)(7) Used to indicate verification that the plan met IRC 4975(e) prior to termination N/A
58 Terminating governmental plan Indicates that the DL is based on the plan sponsor’s assertion that the plan is a government plan under IRC 414(d) N/A
66 Form 5310 Governmental Applications submitted with material that is not adopted, i.e., statute based Enter year that RAC ended. (20XX) format
5998 When a Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization is included with the application Used to indicate a copy of the DL was provided to the authorized Power of Attorney(s) (POA) or other authorized individual. Form 8821 must have an entry in either item 4 or 5 and signature in item 7 N/A
7002 Used to condition determination letter for receipt of proposed restated plan Use date of cover letter unless the proposed restatement is sent via separate correspondence Date (xx/xx/xx or month xx, xxxx)
7027 Used in addition to caveat 11 to indicate consideration of executed amendments Up to two additional amendments can be added if the numeric format is utilized. A 9000 series caveat may be used if more space is needed Date (xx/xx/xx or month xx, xxxx)
7033 Used for all single and multiemployer collectively bargained plans Indicates that the DL does not provide reliance on CBA or auxiliary agreements incorporated by reference and not part of the plan. Applies to addenda, contracts and appendices N/A
7060 Used to condition the letter on the full vesting of affected participants Generally used on termination letters when a sponsor agrees to fully vest affected participants under IRC 411(d)(3). The date of the representative’s or sponsor’s letter providing for the full vesting is required Date (xx/xx/xx or month xx, xxxx)
7063 Proposed amendments or proposed restated plan included with the application, but no cover letter Caveat is similar to caveats 5, 10, and 7002 but no variable is required since there is no cover letter date N/A

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