Defined Benefit Plan Adoption Agreement

As a general rule, an employer that does not modify or slightly modify the plan document may rely on the notice or letter of advice for the plan approved in advance. Minor changes include: changing the effective date of a provision, adopting the IRS model or changing the sample or accepting the necessary changes (Rule 2015-36, Section 19 and Revenue Procedure 2016-37, Section 20.03) and Revenue Procedure 2017-41, Section 7). VS – Employers who have not changed the terms of the pre-approved VS plan (with the exception of the selection of options under the plan) and M-P companies that accept employers are not entitled to submit Form 5307. You can change the terms of your pension plan from time to time (for example. B to change the formula of employer contributions). In addition, all plans must be amended on a regular basis to reflect changes to the legislation. Yes, yes. You should attach copies of the discretionary amendments you have accepted, in addition to the revised plan or acceptance agreement and the basic document. See section 10 of the 2020-4 revenue process (annual update). Yes, yes. The application must contain copies of all interim changes adopted since the last letter of destination of the plan, including the interim changes necessary to bring the plan in line with changes to the qualification requirements applicable to the proposed termination date. See end of a pension plan.

First, look for a plan approved in advance and contact the supplier. An employer may, at any time, adopt a plan approved in advance during the six-year modification cycle (Defined Contribution (DC) or Defined Benefit (DB)) (Revenue Procedure 2016-37, Section 19). If you change the pre-approved plan document or acceptance agreement, With the exception of certain changes authorized by the IRS (see 2015-36 revenue procedure, Sections 5 and 14 and the 2017-41 Revenue Procedure 2017-41, Section 8), the IRS may view the plan as a new personalized plan. In other words, the plan document is so different from the plan approved in advance that the IRS has verified and approved that it is being treated as a brand new plan. If your plan is customized, you can no longer rely on the notice or advice letter from the previously approved document provider. If you want to get an IRS backup on your modified plan document, you can request your own survey letter (on Form 5300) if you wish. See What is a favorable destination letter? April 30, 2020 is the deadline for a pre-approved defined benefit plan for positions on the 2012 cumulative list. (Announcement 2018-05) On April 30, 2016, an employer that maintained a defined contribution plan before January 1, 2016 had to adopt a new version of the plan (revised to reflect the 2010 Cumulative List Points) (communication 2014-16). You can accept a new pension plan approved in advance at any time to launch a plan. In certain circumstances, an employer who adopts a pre-approved M-P or VS plan may submit its own application for a letter of decision on Form 5300 during the two-year period.

This is appropriate if: Form 5307 is only accepted by users of Volume Submitter (VS) model models who change the terms of the pre-approved VS model (and only if the changes are not extensive enough for the plan to be treated as a custom plan for notification. The application must be submitted within the announced acceptance period (revenue procedure 2016-37, section 14.03).