7.11.5  Proper Use of Determination Letter Caveats

Manual Transmittal

July 16, 2013

Purpose

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

Material Changes

(1) This IRM has been updated to reflect current versions of annual revenue procedures.

(2) IRM 7.11.5.2, General Caveat Rules for Determination Letters was updated to remove the link to IRM 7.11.1.36, Plan Merger, Consolidation, Spinoff or Transfer as the IRM subsection does not currently exist.

Effect on Other Documents

IRM 7.11.5 dated July 26, 2012 is superseded.

Audience

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

Effective Date

(07-16-2013)

Robert Choi
Director, Employee Plans
Tax Exempt and Government Entities

7.11.5.1  (07-26-2012)
EP Determination Letter Caveats Overview

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

  2. This IRM replaces QAB 2010-1 and 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.

  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. The legacy system, EDS, continues to be the source for generating the FDL, even for cases worked on the Tax Exempt Determination System (TEDS).

  6. The one exception to EDS letter generating is auto-closure cases receiving a Letter 4577 (DO/CG). These letters are created through Correspondex. 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.

    Note:

    See IRM 7.15.1, Tax Exempt Determination System (TEDS), Employee Plans User Manual Introduction for an introduction to TEDS.

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 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  (07-26-2012)
General Caveat Rules for Determination Letters

  1. Generally, amendments to the plan and trust adopted before the last favorable determination letter (LFDL) should not be included on the current DL.

    Note:

    See IRM 7.11.5.4.1, Cash Balance Moratorium DL and IRM 7.11.5.8.1, Amendments Adopted Before LFDL for Terminating Plans for the two exceptions.

  2. Generally, all amendments to the plan and trust adopted after the date of the LFDL should be included on the current DL.

    Note:

    See IRM 7.11.5.4.2, Discretionary and Interim Amendments on Letter 2002 for the only exception to this rule for Form 5300 applications filed during the second five-year cycle.

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

  4. Any governmental entity that applies for a DL will receive special caveats 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 100 for Letter 835, caveat 60 for Letter 2002, or caveat 58 for Letter 1132.

    Note:

    Letters 1132 and 2002 also need caveat 66, which must be used for governmental plans submitted with material that is not adopted, i.e., statute based.

  5. Only include on the current DL the adoption dates of amendments that were included as proposed amendments on the LFDL if they were adopted after the date of the LFDL.

  6. 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, 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.

  7. 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.

7.11.5.3  (07-26-2012)
DL for GUST (Letter 835)

  1. In general, Letter 835 (DO/CG) is issued for all GUST applications. The term GUST refers to the following laws:

    • The Uruguay Round Agreements Act, Pub. L. 103-465.

    • The Uniformed Services Employment and Reemployment Rights Act of 1994, Pub. L. 103- 353.

    • The Small Business Job Protection Act of 1996, Pub. L. 104-188.

    • The Taxpayer Relief Act of 1997, Pub. L. 105-34 (TRA 97).

    • The Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206.

    • The Community Renewal Tax Relief Act of 2000, Pub. L. 106-554 ("CRA" ).

  2. In general, GUST applications consist of:

    • Form 5300, Application for Determination for Employee Benefit Plan, submitted prior to February 1, 2006. See Rev. Proc. 2000-27, 2000-1 C.B. 1272.

    • Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans for DC pre-approved plans submitted prior to December 18, 2007. See Announcement 2007-90, 2007-2 C.B. 856.

    • Form 5307 applications for DB pre-approved plans submitted prior to February 22, 2010. See Announcement 2009-85, 2009-51 I.R.B. 938.

  3. The specialist should use the general rules described in IRM 7.11.5.2, General Caveat Rules for Determination Letters and the chart in Exhibit 7.11.5-1, DL for GUST (Letter 835) to assist in selecting the appropriate selective paragraph(s).

7.11.5.4  (07-26-2012)
DL for the Staggered Cyclical Approach (Letter 2002)

  1. The EP Determinations process was changed in 2005 to adopt a staggered approach to requesting FDLs.

  2. The procedures for requesting a DL under the staggered approach are set forth in Rev. Proc. 2007-44, 2007-2 C.B. 54, and apply to all law issued on or after the Economic Growth &Tax Relief Reconciliation Act of 2001 (EGTRRA).

  3. Letter 2002 (DO/CG) is issued for all applications submitted using the procedures under Rev. Proc. 2007-44, for the staggered cyclical approach. The possible application types include:

    • Form 5300 applications submitted on or after February 1, 2006.

    • Form 5307 applications for DC pre-approved plans submitted on or after May 1, 2008. See Announcement 2008-23, 2008-1 C.B. 731.

    • Form 5307 applications for DB pre-approved plans submitted on or after May 1, 2010. See Announcement 2010-20, 2010-15 I.R.B. 551.

    Note:

    Different caveats will be used depending on the application type. See IRM 7.11.5.5, DL 2002 for Individually Designed Plans, IRM 7.11.5.6, DL 2002 for DC Pre-Approved Plans, or IRM 7.11.5.7, DL 2002 for DB Pre-Approved Plans.

  4. The specialist will also use the general rules described in IRM 7.11.5.2, General Caveat Rules for Determination Letters and the chart in Exhibit 7.11.5-2, DL for the Staggered Cyclical Approach (Letter 2002), to assist in selecting the appropriate selective paragraph(s).

7.11.5.4.1  (07-26-2012)
Cash Balance Moratorium First Five-Year Remedial Amendment Cycle DL

  1. Generally, amendments that were adopted before the LFDL are not included on the DL. An exception applies for Letter 2002 issued with respect to a cash balance plan that received a Letter 835 ruling for GUST under Notice 2007-6, 2007-1 C.B. 272.

  2. The cash balance moratorium Letter 835 will be dated later than the date the sponsor adopted the amendments required to comply with the first five-year remedial amendment cycle (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 GUST Letter 835.

7.11.5.4.2  (07-26-2012)
Discretionary and Interim Amendments on Letter 2002

  1. For applications submitted during the first five-year cycle for individually designed plans or 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.

  2. For applications submitted during the second five-year cycle, 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 Cumulative List (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."

7.11.5.5  (07-26-2012)
DL 2002 for Individually Designed Plans

  1. Within the five-year RAC for an individually designed plan (as described in IRM 7.11.1.19.1, Remedial Amendment Cycle for Individually Designed Plans), there is a 12-month period of time to file the application for a DL (i.e., on-cycle submission period). Specialists are required to determine whether applications are on-cycle. If the application is on-cycle, include the applicable on-cycle caveat on the 2002 letter. On-cycle caveats for the first five-year cycle are as follows:

    • Cycle A - caveat 13

    • Cycle B - caveat 14

    • Cycle C - caveat 15

    • Cycle D - caveat 16

    • Cycle E - caveat 17

    On-cycle caveats for the second five-year cycle are as follows:

    • Cycle A - caveat 67

    • Cycle B - caveat 68

    • Cycle C - caveat 69

    • Cycle D - caveat 70

    • Cycle E - caveat 71

    The above caveats include the CL that was used to review the plan and the expiration date of the DL.

  2. When an application is filed outside of the 12-month submission period, it is filed off-cycle. An application filed off-cycle should be reviewed using the CL that would be required for an application filed on-cycle during the submission period the application was submitted. DLs for applications filed off-cycle will require two caveats; 20 and 21. 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. Although they are two separate caveats, they will appear and read as one paragraph.

  3. Sometimes an employer will submit an application using a Social Security Number (SSN) because they have not received their Employer Identification Number (EIN). If the EIN subsequently becomes available, replace the SSN with the EIN. The DL for an application like this will receive caveats 24 and 25. Caveat 24 requires the year of expiration which is based on the last digit of the EIN that was assigned. Caveat 25 requires the year of the applicable CL under which the plan was reviewed.

7.11.5.6  (07-26-2012)
DL 2002 for DC Pre-Approved Plans

  1. There are four main types of DC pre-approved plan submissions. Plans submitted on a:

    • Form 5307 which were never modified and are eligible for six-year cycle on a continuing basis. See Rev. Proc. 2007-44 section 17.

    • Form 5307 which were modified yet are still eligible for the six-year cycle on a continuing basis. See Rev. Proc. 2007-44 section 19.02.

    • Form 5300 which are eligible for the six-year cycle on a temporary basis. See Rev. Proc. 2007-44 section 19.03.

    • Form 5300 which are ineligible for the six-year cycle and are switched to five-year cycle immediately. See Rev. Proc. 2007-44 section 19.04.

  2. Generally, an adopter of a pre-approved plan files a Form 5307 application. However, a Form 5300 is required for multiple employer plan sponsors and for any special ruling request (partial termination, affiliated service group status, or a leased employee ruling) even if they are an adopter of a pre-approved plan. In this instance, the cover letter should certify that the plan is word-for-word identical to the pre-approved plan and the Form 5300 is solely the result of one of the aforementioned special ruling requests. Although the sponsor is required to file the Form 5300, the specialist should treat it as if it were a Form 5307 application eligible for the six-year cycle on a continuing basis. Letter 2002 should include caveat 25 with a variable for the applicable CL, and caveat 26 to indicate expiration of reliance on the letter for those applications entitled to the six-year cycle caveat as long as the application is submitted during the two-year period announced by the Service.

    Note:

    For partial termination rulings, add either caveat 57 or 58 to the letter. For affiliated service group rulings, add either caveat 32 or 33, and for leased employee rulings, add either caveat 34 or 35. These caveats explain whether the application met or failed the applicable ruling.

7.11.5.6.1  (07-26-2012)
Six-Year Cycle Continuing Basis

  1. A plan is treated as a pre-approved plan and is eligible for a six-year cycle on a continuing basis if the employer is:

    1. A prior adopter of a pre-approved plan.

    2. A new adopter of a pre-approved plan.

    3. An intended adopter of a pre-approved plan.

    4. An adopter of a replacement plan.

    See Rev. Proc. 2007-44 section 17 for specific definitions.

  2. Use caveats 25 and 26 for all cases eligible for the six-year cycle on a continuing basis.

    Note:

    A variable is required for caveat 25. The specialist will use the year of the applicable CL.

  3. Except for cases described in IRM 7.11.5.6.2, Six-Year Cycle Temporary Basis and IRM 7.11.5.6.3, Six-Year Cycle Switched to Five-Year Cycle, any pre-approved plan will be eligible for the six-year cycle on a continuing basis.

7.11.5.6.2  (07-26-2012)
Six-Year Cycle Temporary Basis

  1. Temporary eligibility for the six-year cycle applies if the employer:

    1. Is an intended adopter and after timely executing the Form 8905, the employer decides to adopt an individually designed plan.

    2. Is a prior adopter of a pre-approved plan and after adopting this pre-approved plan the employer replaces that plan with an individually designed plan.

    3. Amends an approved M&P plan to incorporate a type of plan not allowed in the M&P program and that amendment is adopted more than one year after the date the employer initially adopted the M&P plan. See section 6.03 of Rev. Proc. 2011-49, 2011-44 I.R.B. 608 for list of plans not allowed in the M&P program.

    4. Amends an approved VS plan to incorporate a type of plan not allowed in the VS program and that amendment is adopted more than one year after the date the employer initially adopted the VS plan. See section 16.03 of Rev. Proc. 2011-49 for list of plans not allowed in the VS program.

  2. For applications that are eligible for the six-year cycle on a temporary basis then switch to five-year cycle, specialists will use caveats 20 and 21. Caveat 20 requires input for the year of expiration (which is based on the last digit of the plan's EIN) and caveat 21 requires the year of the applicable CL under which the plan was reviewed. Although they are two separate caveats, they will appear and read as one paragraph.

7.11.5.6.3  (07-26-2012)
Six-Year Cycle Switched to Five-Year Cycle

  1. If an employer amends an approved M&P or VS plan to such an extent that the Service determines, in its discretion, that the plan falls under section 24.03 of Rev. Proc. 2011-49 then the plan will be considered individually designed. The same rule applies if the employer adopts an amendment described under paragraph (1)(c) and (1)(d) of IRM 7.11.5.6.2, Six-Year Cycle Temporary Basis, within one year of adopting either the M&P plan or the VS plan.

  2. For applications that are ineligible for the six-year cycle and are switched to five-year cycle immediately, see IRM 7.11.5.5, Letter 2002 for Individually Designed Plans.

7.11.5.7  (07-26-2012)
DL 2002 for Defined Benefit Pre-Approved Plans

  1. Use the same procedures as described in IRM 7.11.5.6, DL 2002 for DC Pre-Approved Plans for DB pre-approved plans; however, caveat 27 will be used in place of caveat 26.

  2. Caveat 27 reads as follows: "This letter expires on the earlier of the date of the employer's next determination letter or the end of the subsequent two-year period announced by the Service and which comprises part of the next six-year remedial amendment/approval cycle applicable to adopting employers of pre-approved defined benefit plans."

7.11.5.8  (07-26-2012)
DL 1132 for Terminating Plans

  1. Letter 1132 (DO/CG) is issued for all applications submitted on a Form 5310, Application for Determination for Terminating Plan.

  2. The specialist should use the general rules described in IRM 7.11.5.2, General Caveat Rules for Determination Letters and the chart in Exhibit 7.11.5-3, DL 1132 for Terminating Plans to assist in selecting the appropriate selective paragraph(s).

7.11.5.8.1  (07-26-2012)
Amendments Adopted Before LFDL for Terminating Plans

  1. Generally, the Service does not caveat for amendments adopted prior to the LFDL. There is an exception to the rule when the sponsor adopts amendments prior to the IRS issuing the LFDL, and the LFDL does not cover the amendments.

  2. For the first (five-year or six-year) RAC, Letter 1132 should include caveats 11 or 7027 for all amendments adopted to comply with EGTRRA and/or the final 401(a)(9) Regulations, even if they were adopted before the date of the LFDL.

  3. If the sponsor received a DL for the first five-year or six-year RAC, the sponsor should submit all amendments for subsequent CLs. The Letter 1132 should include caveats for all amendments adopted to comply with the subsequent CLs, even if they were adopted before the date of the LFDL.

  4. If the sponsor did not receive a DL for the first five-year or six-year RAC, the sponsor must submit amendments adopted to comply with both the first and second RAC. Letter 1132 issued for applications submitted during the second cycle should not include caveats for amendments that apply to the first RAC.

  5. The amendments adopted on behalf of the employer by the pre-approved plan sponsor/practitioner should also be included.

Exhibit 7.11.5-1 
DL for GUST (Letter 835)

EDS Paragraph Number When to use Explanation Variable
6 To condition the determination letter on adoption of proposed amendments to the plan This is 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)
7 Additional caveat for proposed amendments when needed See the explanation above for paragraph #6. Date (xx/xx/xx or month xx, xxxx)
16 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
21 Used with Form 5300 applications that include information outlined in section 14 of Rev. Proc. 2013-6, 2013-1 I.R.B. 198 (revised annually). Meets the Affiliated Service Group (ASG) status requirements of IRC 414(m). N/A
22 Used with Form 5300 applications that include information outlined in section 14 of Rev. Proc. 2013-6 (revised annually). Meets the Leased Employee Status requirements of IRC 414(n). N/A
23 Used with Form 5300 applications that include information outlined in section 14 of Rev. Proc. 2013-6 (revised annually). Does not meet the ASG status requirements of IRC 414(m). N/A
24 Used with Form 5300 applications that include information outlined in section 14 of Rev. Proc. 2013-6 (revised annually). Does not meet the Leased Employee status requirements of IRC 414(n). N/A
26 Considers executed amendments for the plan. Used to indicate the execution date of each amendment after the initial adoption that has NOT been included on a prior determination letter. Date (xx/xx/xx or month xx, xxxx)
27 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)
28 Used only for the initial adoption of the plan. Indicate the date the employer executed the initial plan document. Date (xx/xx/xx or month xx, xxxx)
39 For plans involved in termination spin-offs or re-establishments 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
51 Form 5300 submitted with Form 5309 ESOP plan meets the requirements of IRC 4975(e)(7). N/A
85 Used with Form 5300 applications that include information outlined in section 16 of Rev. Proc. 2013-6 (revised annually). Plan meets the requirements of IRC 401(h) and IRC 420. N/A
97 Required for all 835 letters for GUST 3 applications. Used to show compliance with full GUST. N/A
98 Used with Form 5300 applications that include information outlined in section 10 of Rev. Proc. 2013-6 (revised annually). Multiple employer plans meet IRC 413(c). N/A
100 Use for Governmental Plans. Indicates that the DL is based on the plan sponsor’s assertion that plan is government plan under IRC 414(d). N/A
5998 When a Form 2848 Power of Attorney and Declaration of Representative or a Form 8821, Tax Information Authorization is included with the application. Used to indicate a copy of the DL provided to the Power of Attorney(s) (POA) or other authorized individual. Copy of DL provided to second POA listed on the Form 2848 only if authorized per item #7(b). 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 Collectively-Bargained Agreement (CBA) or auxiliary agreements incorporated by reference and not part of plan. N/A
7054 Correction of a prior determination Letter 2002 This letter supersedes our letter dated on or about xxxxxx. Date (xx/xx/xx or month xx, xxxx)
7056 5300 Partial termination request Based on the information you have supplied, we have determined that a partial termination occurred on xxxxxx. Date (xx/xx/xx or month xx, xxxx)
7058 5300 Partial termination request Based on the information you have supplied, we have determined that a partial termination did not occur. N/A
7063 Proposed amendments or proposed restated plan in application but a cover letter is not included in the package. Caveat is similar to caveats 6 and 7 but no variable is required since there is no cover letter date. N/A

Exhibit 7.11.5-2 
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
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. Rev. Proc. 2013-6 (revised annually). Meets the ASG status requirements of IRC 414(m). N/A
33 Used with Form 5300 application that include information outlined in section 14 of Rev. Rev. Proc. 2013-6 (revised annually). Does not meet the ASG status requirements of IRC 414(m). N/A
34 Used with Form 5300 application that include information outlined in section 14 of Rev. Rev. Proc. 2013-6 (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. 2013-6 (revised annually). Does not meet the Leased Employee status requirements of IRC 414(n). N/A
40 Used only for the initial adoption of the plan. Indicate the date the employer executed the initial plan document. Date (xx/xx/xx or month xx, xxxx)
41 Considers executed amendments for the 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.
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 Form 5300 applications that include information outlined in section 16 of Rev. Proc. 2013-6 (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. 2013-6 (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
66 Form 5300 Governmental Applications submitted with material that is not adopted, i.e., statute based. C=2009 E=2011
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 a Form 8821, Tax Information Authorization is included with the application Used to indicate a copy of the DL provided to the Power of Attorney(s) (POA) or other authorized individual. Copy of DL provided to second POA listed on the Form 2848 only if authorized per item #7(b). 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. N/A
8502 Addendum Must be selected with caveat 5997. N/A

Exhibit 7.11.5-3 
DL 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 enter 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. Include each executed amendment that has not been previously included on a prior determination letter. Date (xx/xx/xx or month xx, xxxx)
36, 37 Foreign trusts Include on any letter for a terminating plan which has 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
5998 When a Form 2848 Power of Attorney and Declaration of Representative or a Form 8821, Tax Information Authorization is included with the application. Used to indicate a copy of the DL provided to the Power of Attorney(s) (POA) or other authorized individual. Copy of DL provided to second POA listed on the Form 2848 only if authorized per item #7(b). 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. 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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