IRS Limited Expansion of Determination Letter Program

On September 1, 2019, the IRS reopened its determination letter program for two types of individually designed retirement plans: statutory hybrid plans and merged plans. For a detailed review of this limited expansion of the determination letter program, see our client alert, “IRS Announces Limited Expansion of the Determination Letter Program for Individually Designed Plans.”

The IRS will accept determination letter applications for statutory hybrid plans through August 31, 2020. For merged plans, the application deadline is the last day of the merged plan’s first year that begins after the effective date of the plan merger (e.g., if a plan merger was effective July 1, 2018, then the submission deadline is December 31, 2019).

In addition, the IRS may waive or reduce sanctions for plan document failures discovered during the determination letter review process.

Consult with your benefits counsel to discuss whether your plan meets the requirements to submit a determination letter application and to review the advantages and disadvantages of submitting your plan for a favorable determination letter.

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