7.11.5 Proper Use of Determination Letter Caveats

Manual Transmittal

August 20, 2018

Purpose

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

Material Changes

(1) Updated various sections to reference the newest annual revenue procedures.

(2) Updated IRM 7.11.5.2, Letter 5274 for Individually Designed Plans, to require the use of caveats 2 and 25 for Cumulative List (CL) cases and caveats 3 and 22 for Required Amendment List (RA List) cases.

(3) Updated IRM 7.11.5.3, Letter 5274 for Pre-Approved Plans, to require the use of caveat 2 when creating a Determination Letter (DL) for a pre-approved plan.

(4) Updated IRM 7.11.5.6, Additional Guidance / Common Errors, to

  • Delete the reference to the streamlined IRC 7805(b) procedures. Specialists should use the procedures in Interim Guidance Memorandum #TEGE 04-0118-0001 dated January 5, 2018.

  • Emphasize that if a plan sponsor is requesting only a partial termination ruling, prepare Letter 5889, Partial Termination Determination, and not a Letter 5274.

Effect on Other Documents

This supersedes IRM 7.11.5, dated December 06, 2017.

Audience

Tax Exempt and Government Entities
Employee Plans

Effective Date

(08-20-2018)

Catherine L. Jones
Acting Director, Employee Plans
Tax Exempt and Government Entities

Program Scope and Objectives

  1. Purpose: This IRM gives guidance for using caveats (selective paragraphs) on favorable Determination Letters (DL):

    • Letter 1132 - issued for terminating plans submitted on a Form 5310.

    • Letter 5274 - issued for on-going plans submitted on a Form 5300 or 5307.

  2. Audience: Employee Plans (EP) Determinations and Quality Assurance (QA) staff

  3. Policy Owner: Director, EP

  4. Program Owner: EP

  5. Program Goals: The goal of EP Determinations is to ensure that plans comply with the tax laws. We do this by reviewing applications for determination and opinion letters and to protect the public interest by applying the tax law with integrity and fairness to all.

  6. Related Resources: This IRM supplements IRM 7.13.5, Employee Plans Automated Processing Procedures, Letter Generation, which:

    1. Lists procedures for the Employee Plans/Exempt Organizations Determination System (EDS) Letter Generation Subsystem (LGS).

    2. Contains a copy of each letter.

Background

  1. A plan is qualified if it meets the requirements of IRC 401(a) in form and operation. A qualified plan is entitled to favorable tax treatment.

  2. To help taxpayers ensure their plans comply with the tax law, EP reviews applications and issues for DLs and opinion letters on whether the form of the plan meets the qualification requirements. See IRM 7.11.1.

  3. The DL is the end product after a specialist reviews the application package and concludes the plan is qualified. Add caveats to the DLs for:

    • Plan, trust and amendments execution date(s)

    • Cover letter dates for proposed amendments

    • Other applicable explanations for the request type

  4. It is critical that the DL is accurate because it gives a historical record and may be relied upon for future DL applications or plan examinations.

  5. Use EDS to generate Letters 1132 and 5274; even for cases worked on the Tax Exempt Determination System (TEDS).

  6. We no longer send Publication 794, Favorable Determination Letter, with the DL. However, Letters 5274 and 1132 refer to the publication and list instructions to obtain a copy of it at: IRS Forms & Publications or by calling 1-800-TAX-FORM (1-800-829-3676). This publication:

    1. Explains the significance of a favorable DL.

    2. Points out some features that may affect the qualified status of an employee retirement plan and nullify the DL without specific notice from us.

    3. Provides general information on the plan’s reporting requirements.

    4. States that the DL applies only to the plan sponsor who submitted the application. Therefore, for controlled groups or Affiliated Service Groups (ASG) who adopt the same plan, we issue the letter only to the employer who sent the application.

Authority

  1. Delegation Order 7-1a states that the authority to issue favorable DLs on the qualified status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans under IRC 401, IRC 403(a), IRC 409 and IRC 4975(e)(7) and the status for exemption of any related trusts or custodial accounts under IRC 501(a) is delegated to the Director, Employee Plans, and has been redelegated to the Director, EP Rulings and Agreements. IRM 1.2.46.2.1

  2. Delegation Order 7-1d, delegates the authority to allow a plan to be amended after the expiration of its IRC 401(b) remedial amendment period to the Director, EP Rulings and Agreements. IRM 1.2.46.2.4.

  3. See Delegation Orders by Process for a complete list of delegation orders governing EP Rulings and Agreements.

  4. See IRM 7.1.1, Exhibit 7.1.1-1 for a list of the major EP revenue procedures currently in effect.

Acronyms

  1. These acronyms are used in this IRM:

    Acronym Term
    ASG Affiliated Service Groups
    CAP Audit Closing Agreement Program
    CL Cumulative List
    DL Determination Letter
    DB Defined Benefit
    DC Defined Contribution
    EDS Employee Plans/Exempt Organizations Determination System
    EP Employee Plans
    EIN Employer Identification Number
    LFDL Last Favorable Determination Letter
    LGS Letter Generation Subsystem
    POA Power of Attorney
    QA Quality Assurance
    RAC Remedial Amendment Cycle
    RA List Required Amendment List
    SSN Social Security Number
    TEDS Tax Exempt Determination System
    VC Voluntary Compliance

Letter 5274 for Individually Designed Plans

  1. Use the chart in Exhibit 7.11.5-1, DL for On-Going Plans (Letter 5274), for help selecting the appropriate caveat(s).

  2. For applications submitted during one of the five-year RACs, include caveats:

    • 2 to show that the DL doesn’t apply to qualification items that become effective after the dates specified on the applicable Cumulative List (CL).

    • 25 with a variable for the applicable CL year we ruled on.

  3. For applications submitted after the elimination of the RAC system in Rev. Proc. 2016-37, include caveats:

    • 3 to show that the DL doesn’t apply to qualification items that become effective after the dates specified on the applicable Required Amendment List (RA List).

    • 22 with a variable for the RA List year we ruled on.

  4. If you receive an application with a Social Security Number (SSN) (because the plan sponsor didn’t have an Employer Identification Number (EIN)) and the plan sponsor is later assigned an EIN, replace the SSN with the EIN.

  5. For applications submitted during the first five-year cycle, include on the Letter 5274, the date(s) of a), b), and/or c) below if adopted after the Last Favorable Determination Letter (LFDL) even if no reliance is provided:

    1. Plan restatements.

    2. Discretionary/interim amendments.

    3. Amendments that a pre-approved plan sponsor/practitioner adopted on the plan sponsors behalf.

    Note:

    Don’t caveat for amendments the plan sponsor adopted before 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 plan sponsor adopted the amendments required to comply with the first five-year RAC. Use the date of the restated document and all discretionary and interim amendments the plan sponsor adopted to comply with the applicable CL regardless of the Letter 835 date.

  6. For applications submitted during the second or final A3 five-year cycles, include on the Letter 5274, the date(s) of a), b), and/or c) below regardless of the date of the LFDL:

    1. The restated document and interim amendments adopted to comply with the applicable CL for the cycle that the application was submitted.

    2. All discretionary amendments that became effective during the applicable five-year cycle including any effective on or after the January 1 immediately before the beginning of the cycle.

      Example:

      A plan sponsor submits a cycle A3 application (cycle begins February 1, 2012 and ends January 31, 2017) with a discretionary amendment effective January 1, 2012, adopted December 31, 2011. Include the amendment dated December 31, 2011 on the DL since it’s effective January 1, 2012.

    3. Corrective amendments submitted or secured with a Voluntary Compliance (VC) application or the Audit Closing Agreement Program (CAP) in the applicable cycle.

  7. For applications submitted on or after January 1, 2017 (other than the cases submitted for the final A3 cycle), include on the Letter 5274, the date(s) of a), b), c), d), and/or (e):

    1. The initial plan document if effective on or after January 1, 2010 and not previously ruled on.

    2. The current restatement if subsequent to the initial plan document.

    3. All amendments effective for the CL and/or RA List for which the application was submitted.

    4. All discretionary amendments effective on or after the later of January 1, 2010 and the date of the LFDL.

    5. Corrective amendments submitted or secured with a VC application or Audit CAP on or after the later of January 1, 2010 or the date of the LFDL.

    Example:

    A plan sponsor submits an initial application on June 15, 2018, for a plan that has existed since 2004 and never received a DL. Include on the DL: all amendments listed on the 2016 RA List, interim amendments for the 2015 CL items, and any discretionary amendments effective on or after January 1, 2010.

  8. For "new plans" (plans that have never been issued a favorable DL per Rev. Proc. 2016-37, section 4.03), include caveat 40 for the initial plan adoption date if the document was effective on or after January 1, 2010.

Letter 5274 for Pre-Approved Plans

  1. Use the chart in Exhibit 7.11.5-1, DL for On-Going Plans (Letter 5274), for help selecting the appropriate caveat(s).

  2. If a plan sponsor submits a pre-approved plan during an IRS-announced two-year window, include caveats:

    1. 2 to show that the DL doesn’t apply to qualification items that become effective after the dates specified on the applicable CL.

    2. 25 with a variable for the applicable CL year we ruled on.

    3. 26 with variable "contribution" for DC plans or "benefit" for DB plans to indicate the letter's expiration date.

    Exception:

    Don’t use caveat 26 for applications that are only temporarily eligible for the six-year cycle. For these applications, use caveat 25 with a variable for the applicable CL.

  3. For applications submitted during the first six-year cycle, include on the Letter 5274, the date(s) of a), b), and/or c) below if adopted after the LFDL, even if no reliance is provided:

    1. Plan restatements.

    2. Discretionary/interim amendments.

    3. Amendments that a pre-approved plan sponsor/practitioner adopted on the plan sponsor’s behalf.

    Note:

    Don’t caveat for amendments the plan sponsor adopted before the plan's original effective date.

  4. For applications submitted during the second or subsequent six-year cycles, include on the Letter 5274, the date(s) of a), b), and/or c) below regardless of the date of the LFDL:

    1. The restated document and interim amendments adopted (including amendments adopted on behalf of a plan sponsor) to comply with the applicable CL for the cycle that the application was submitted.

    2. All discretionary amendments that became effective during the applicable six-year cycle including any effective on or after the January 1 immediately before the beginning of the cycle.

    3. Corrective amendments submitted or secured with a VC application or Audit CAP in the applicable cycle.

Letter 1132 for Individually Designed Plans

  1. Use the chart in Exhibit 7.11.5-2, Letter 1132 for Terminating Plans, for help selecting the appropriate caveat(s).

  2. For applications submitted during the first five-year cycle, include on the Letter 1132, the date(s) of a), b), and/or c) below if adopted after the LFDL, even if no reliance is provided:

    1. Plan restatements.

    2. Discretionary/interim amendments.

    3. Amendments that a pre-approved plan sponsor/practitioner adopted on the plan sponsor’s behalf.

    Note:

    Include on the Letter 1132 the date(s) the plan sponsor adopted amendments to comply with EGTRRA and/or the IRC 401(a)(9) Treasury regulations, even if they adopted them before the date of the LFDL.

  3. For applications submitted during the second or final A3 five-year cycles, include on the Letter 1132, the date(s) of a), b), c), and/or d) below regardless of the date of the LFDL:

    1. The restated document and interim amendments adopted to comply with the applicable CL for the cycle that the application was submitted.

    2. All discretionary amendments that became effective during the applicable five-year cycle including any effective on or after the January 1 immediately before the beginning of the cycle.

    3. All interim amendments adopted to comply with laws that are effective on the plan termination date even if the RAP for that law hasn’t otherwise ended.

    4. Corrective amendments submitted or secured with a VC application or Audit CAP in the applicable cycle.

  4. For applications submitted after January 31, 2017 (after the end of the A3 cycle), include on the Letter 1132, the date(s) of a), b), c), and/or d):

    1. The initial plan document or the restated plan document effective on or after January 1, 2010 or adopted after the LFDL, if later.

    2. All amendments listed on the RA List including amendments adopted to comply with laws that are effective on the plan termination date even if the RAP for that law hasn’t otherwise ended.

    3. Any interim amendments adopted to comply with a CL issued after the applicable 2nd cycle.

    4. All discretionary amendments effective on or after the later of January 1, 2010 or the date of the LFDL.

    5. Corrective amendments submitted or secured with a VC application or Audit CAP on or after the later of January 1, 2010 or the date of the LFDL.

      Example:

      Employer X terminates an individually designed plan and submits a Form 5310 application on August 17, 2017. Employer X has an EIN that ends in 2 which is cycle B. The CL applicable for cycle B2 is 2011. Therefore, include on the Letter 1132, amendments for items on the 2016 RA List and interim amendments that appeared on the 2012-2015 CL.

Letter 1132 for Pre-Approved Plans

  1. Use the chart in Exhibit 7.11.5-2, Letter 1132 for Terminating Plans, for help selecting the appropriate caveat(s).

  2. For applications submitted during the first six-year cycle, include on the Letter 1132, the date(s) of a), b), and/or c) below if adopted after the LFDL, even if no reliance is provided:

    1. Plan restatements.

    2. Discretionary/interim amendments.

    3. Amendments that a pre-approved plan sponsor/practitioner adopted on the plan sponsor’s behalf.

    Note:

    Include on the Letter 1132 the date(s) the plan sponsor adopted amendments to comply with EGTRRA and/or the IRC 401(a)(9) Treasury regulations, even if they adopted them before the LFDL’s date.

  3. For applications submitted during the second or subsequent six-year cycles, include on the Letter 1132, the date(s) of a), b), c), and/or d) below regardless of the date of the LFDL:

    1. The restated document and interim amendments adopted to comply with the applicable CL for the cycle that the application was submitted.

    2. All discretionary amendments that became effective during the applicable six-year cycle including any effective on or after the January 1 immediately before the beginning of the cycle.

    3. All interim amendments adopted to comply with laws that are effective on the plan termination date even if the RAP for that law hasn’t otherwise ended.

    4. Corrective amendments submitted or secured with a VC application or Audit CAP in the applicable cycle.

    Example:

    A DC plan terminates in the second six-year RAC. Include on the Letter 1132, interim amendments that apply to the 2005 CL through the 2010 CL plus any additional interim amendments required through the date of termination, and discretionary amendments that became effective on or after January 1, 2010.

Additional Guidance / Common Errors

  1. Use the 9000 series caveats to create customized paragraphs when the current EDS caveats aren’t sufficient. Consult your manager or EP Determinations QA before you add a 9000 series caveat unless the situation is described in this IRM. The 7000 and 9000 caveats are printed as an addendum to the letter, so you must include caveats 5996 and 8502 on the Letter 5274 (not necessary for the Letter 1132) to indicate that the letter has a third page Addendum. Skip the first line on the EDS screen when you add a customized paragraph, but don’t indent the paragraph.

    Caution:

    Never attach any other document or information to a letter as an addendum.

  2. If the plan sponsor adopts a trust:

    1. Before the initial plan document, use caveat 51 on Letter 5274, or caveat 17 on Letter 1132.

    2. On the same date as the initial plan document, use caveat 40 on Letter 5274, or caveat 13 on Letter 1132 which covers both the plan and trust adoption.

    3. After the initial plan document, use caveats 41, 42, or 43 on Letter 5274, or caveats 12 or 7027 on Letter 1132. Also, treat trust amendments like any other plan amendment.

  3. Governmental Plans - For governmental entities that apply for a DL, add caveat 60 to Letter 5274 and caveat 58 to Letter 1132 to show that the DL is based on the plan sponsor’s assertion that the plan is a government plan under IRC 414(d).

    Note:

    If the governmental plan is submitted with material that isn’t adopted, in other words, statute based, also add caveat 66 to Letters 1132 and 5274.

  4. Proposed Amendments: Include the LFDL’s proposed amendment adoption dates on your current DL, if:

    1. For the first five-year cycle: they were adopted after the LFDL date.

    2. For the second or final A3 five-year cycles: they contain provisions which apply to the applicable CL for the current cycle or a discretionary provision that is effective for the current RAC.

  5. Mergers: If the application is submitted with plan merger documentation, include only the amendments for the surviving plan on the DL. The plan sponsor can still rely on this DL for the merged plan(s) even though their amendment dates aren’t included on the DL.

  6. International: Dual qualified plans have trusts in the U.S. but intend to have dual qualification under both the Puerto Rico Code and Internal Revenue Code. If the plan includes an addendum for dual qualification, include caveat 19 on Letter 5274 or caveat 18 on Letter 1132.

  7. Non-electing church: If the plan indicates that it is a non-electing church plan, include caveat 7199 on both Letter 5274 and Letter 1132.

  8. Retiree medical benefit: If the application includes the information in Rev. Proc. 2018-4 (revised annually) section 18 for IRC 401(h) retiree medical benefits and the plan meets the requirements of IRC 401(h) and IRC 420, include caveat 62 on Letter 5274 and caveat 16 on Letter 1132 for the second and subsequent cycles. If the application requests a ruling under IRC 401(h) only, include caveat 7198 on Letter 5274.

  9. Accident and health plans: If the plan has provisions for health and disability benefits, include on the DL the following 9000 series caveat: "This determination is not an opinion on whether disability benefits or medical care benefits are accident and health plan benefits under IRC section 105 or whether contributions are contributions by an employer to accident and health plans under IRC section 106."

  10. Windsor caveat: include caveat 75 on the Letter 5274 for all applications submitted during cycle C2 and earlier to show that the IRS did not rule on section 3 of the Defense of Marriage Act, Pub. L. 104-199, 110 Stat. 2419 (DOMA) or U.S. v. Windsor, 133 S. Ct. 2675 (2013). For Letter 1132, include caveat 75 for plans terminating before June 26, 2013.

  11. Power of Attorney (POA) copies: Only send copies of the DL to a POA if the Form 2848 box is checked to send the POA notices and communications.

  12. Partial Terminations Ruling Request Only: If the plan sponsor is requesting only a partial termination ruling, prepare Letter 5889, Partial Termination Determination, in EDS and select either caveat 9 if you determine a partial termination did occur or caveat 11 if one didn’t occur.

DL for On-Going Plans (Letter 5274)

EDS Paragraph Number Use for Explanation Variable
2 All pre-approved plans and individually designed plans that apply for a DL in the RAC system Use to show that the DL doesn’t apply to qualification items that become effective after the dates specified on the applicable CL. N/A
3 Individually designed plans that apply for a DL after the end of the RAC system Use to show that the DL doesn’t apply to qualification items that become effective after the dates specified on the applicable RA List. N/A
19 Plans with an addendum for dual qualification under both the Puerto Rico Code and Internal Revenue Code. The DL only applies to IRC 401(a) and not with respect to the qualification requirements under the Puerto Rico Internal Revenue Code. N/A
22 Applications submitted under a RA List Include the year of the RA List that the application has reliance RA List (20XX) format
25 Applications submitted under a CL Include the year of the CL that the application has reliance CL (20XX) format
26 Plans that remain on the six-year cycle Include applicable variable depending on whether the plan is a DC or DB plan "contribution" or "benefit"
29 Foreign trusts Use when a plan is using a foreign trust N/A
31 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 Applications that request an ASG status ruling. See Rev. Proc. 2016-6, section 14 (revised annually)

Note:

Plan sponsors may not request ASG rulings on or after January 3, 2017 per Rev. Proc. 2017-4

Include applicable variable depending on whether the plan does or doesn’t meet the ASG requirements of IRC 414(m) "are" or "are not"
34 Applications that request a leased employee status ruling. See Rev. Proc. 2018-4, section 17 (revised annually) Include applicable variable depending on whether the plan does or doesn’t meet the leased employee requirements of IRC 414(n) "satisfies" or "is not subject to"
40 Initial plan adoption and separate initial trust document when adopted on same date. Indicate the date the initial plan was adopted (and trust when adopted on same date); caveat is intended to cover both documents Date (xx/xx/xx or month xx, xxxx)
41 Executed plan and trust amendments
Initial trust document adoption if adopted after the initial plan adoption date
Refer to IRM 7.11.5.2, Letter 5274 for Individually Designed Plans, and IRM 7.11.5.3, Letter 5274 for Pre-Approved Plans, for the rules of which amendments to caveat.

Note:

If a separate trust document is adopted after the date of the initial plan document, use caveat 41; don’t create a caveat

Date
  • month xx, xxxx, if only one date

  • xx/xx/xx for multiple dates

42 Additional Amendments Used with caveat 41 Date (xx/xx/xx)
43 Additional Amendments Used with caveats 41 and 42. Use a 9000 series caveat if you need more space Date (xx/xx/xx)
44 Conditioning the DL on adoption of proposed amendments Enter the date of the letter used to submit the proposed amendment. If the letter or fax is undated, use the received date Date (xx/xx/xx or month xx, xxxx)
45 Additional Proposed Amendments Enter the date of the letter used to submit the proposed amendment. If the letter or fax is undated, use the received date Date (xx/xx/xx or month xx, xxxx)
46 Conditioning the DL on adoption of a proposed restated plan Enter the date of the letter used to submit the proposed restated document. If the letter or fax is undated, use the received date 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 Initial trust document when adopted before the initial plan Indicate the date the initial trust was adopted if before the initial plan Date (xx/xx/xx or month xx, xxxx)
53, 62, or 63 Plans that meet the requirements of IRC 401(a)(2) for plan asset transfers in a DB plan to an IRC 401(h) health account Use caveat:
  • 53 for applicable transfers that occurred before January 1, 2006.

  • 63 for transfers after that date and before January 1, 2014.

  • 62 for transfers after that date and before January 1, 2026.

N/A
55 Multiple employer plans. See Rev. Proc. 2018-4, section 14 (revised annually) Multiple employer plans meet IRC 413(c) N/A
57 Partial termination with a determination request on a Form 5300 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 Partial termination with a determination request on a Form 5300 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 5274 Include the date of the letter being superseded 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 N/A
75 Form 5300 applications submitted for cycle C2 and earlier. Cycle C2 ended on February 1, 2014 Indicates that DL doesn’t provide reliance on U.S. v. Windsor, 570 U.S. 12 (2013) N/A
76 DB plan applications submitted on or before January 3, 2017 where the plan sponsor fails to address risk-transferring or states that there is no risk-transferring language as defined in Notice 2015-49 Indicates that the DL provides no reliance regarding risk-transferring language N/A
77 DB plans that contain risk-transferring language that complies with Notice 2015-49 Indicates that the risk-transferring language complies with Notice 2015-49 N/A
5996, 8502 Alerting recipient of attached addendum because you used a 7000 or 9000 series caveat. Indicates that an addendum is attached to the letter as a third page N/A
7033 Collectively bargained plans DL doesn’t provide reliance on CBA or auxiliary agreements that are incorporated by reference N/A
7198 IRC 401(h) retiree medical benefit account features Used when a plan requests a ruling on IRC 401(h) retiree medical benefit account features N/A
7199 Non-electing church Used when plan indicates it’s a non-electing church plan N/A

Letter 1132 for Terminating Plans

EDS Paragraph Number Use for Explanation Variable
4 Proposed date of plan termination Enter the termination date of the plan from the terminating board resolution or amendment Date (xx/xx/xx or month xx, xxxx)
6, 10, 8503 A terminating plan that has a reversion Generates the Benefit Assurance Form Alert and alerts the plan sponsor of certain filing requirements. May not apply to certain tax-exempt entities or governmental plans N/A
9 Plans involved in termination spin-offs or re-establishments conditioning the letter on receiving approval of changes in funding amortization Use is mandated per IRS DOL Implementation Guidelines dated May 24, 1984 N/A
11 Conditioning the DL on adoption of a proposed amendments Enter the date of the letter used to submit the proposed amendment. If the letter or fax is undated, use the received date Date (xx/xx/xx or month xx, xxxx)
12 Executed plan and trust amendments
Initial trust document adoption if adopted after the initial plan adoption date
Refer to IRM 7.11.5.4, Letter 1132 for Individually Designed Plans, and IRM 7.11.5.5, Letter 1132 for Pre-Approved Plans, for the rules of which amendments to caveat. Date (xx/xx/xx or month xx, xxxx)
13 Initial plan adoption and separate initial trust document adoption when adopted on same date. Indicate the date the initial plan was adopted (and trust when adopted on same date); caveat is intended to cover both documents. See caveat 17 if adopted on different days Date (xx/xx/xx or month xx, xxxx)
14, 15, 16, or 43 Plans that meet the requirements of IRC 401(a)(2) for plan asset transfers in a DB plan to an IRC 401(h) health account Use caveat:
  • 43 for applicable transfers that occurred before January 1, 2001.

  • 14 for transfers after that date and before January 1, 2006.

  • 15 for transfers after that date and before January 1, 2014.

  • 16 for transfers after that date and before January 1, 2022.

N/A
17 Initial trust document when adopted before the initial plan. Indicate the date the initial trust was adopted if before the initial plan Date (xx/xx/xx or month xx, xxxx)
18 Plan with an addendum for dual qualification under both the Puerto Rico Code and Internal Revenue Code. The DL only applies to IRC 401(a) and not with respect to the qualification requirements under the Puerto Rico Internal Revenue Code. N/A
36, 37 Foreign trusts Use when a plan is using a foreign trust N/A
44 ESOP plans that meet 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
72 Plans with rollover accounts that may be invested in employer securities. Indicates that we are not ruling on the requirements of IRC 4975(d) or the tax attributable to rollover funds N/A
75 Plans with termination dates before June 26, 2013 Indicates that DL does not provide reliance on U.S. v. Windsor, 570 U.S. 12 (2013) N/A
76 DB plan applications submitted on or before January 3, 2017 where the plan sponsor fails to address risk-transferring or states that there is no risk-transferring language as defined in Notice 2015-49 Indicates that the DL provides no reliance regarding risk-transferring language N/A
77 DB plans that contain risk-transferring language that complies with Notice 2015-49 Indicates that the risk-transferring language complies with Notice 2015-49 N/A
7002 Conditioning the DL on adoption of a proposed restated plan Enter the date of the letter used to submit the proposed restated document. If the letter or fax is undated, use the received date Date (xx/xx/xx or month xx, xxxx)
7027 Executed amendments. Used in addition to caveat 12 Used with caveat 12; Use a 9000 series caveat if more space is needed Date (xx/xx/xx)
7033 Collectively bargained plans DL does not provide reliance on CBA or auxiliary agreements that are incorporated by reference N/A
7054 Correction of a prior Letter 1132 Include the date of the letter being superseded Date (xx/xx/xx or month xx, xxxx)
7060 Conditioning the letter on the full vesting of affected participants Used when a sponsor agrees to fully vest affected participants under IRC 411(d)(3). Enter the date of the sponsor/POA's letter providing for the full vesting 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
7199 Non-electing church Used when plan indicates that it’s a non-electing church plan N/A