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.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

About Author: Yael Kalman

Yael Kalman focuses her practice on a range of employee benefits matters, including qualified retirement plans and health and welfare plans, and assists in the employee benefits and executive compensation aspects of corporate transactions. She has experience counseling clients on benefit plan issues and ensuring that benefit plans are designed and administered in compliance with ERISA, the Internal Revenue Code, and the Affordable Care Act. View all posts by and

About Author: Joshua Waldbeser

Joshua Waldbeser counsels retirement plan sponsors, asset managers and funds, and financial services providers on their fiduciary responsibilities under ERISA, and keeps them on course with regulatory compliance matters. Formerly with the Department of Labor (DOL) Employee Benefits Security Administration, Joshua has an insider’s view of the regulatory challenges faced by employers with respect to their own plans, and by insurance companies, investment advisers, broker-dealers, recordkeepers, banks and trust companies with respect to their services to plans and IRAs. He provides practical, business-oriented advice that reflects the interplay between ERISA, securities and other sources of law, and focuses on compliance and risk mitigation. View all posts by and

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