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IRS Revises Determination Letter Dates, Deadline Extensions for Some Pre-Approved Plans

The IRS on Jan. 4 said it will issue guidance on revisions to the employee plans determination letter program regarding Cycle A elections, determination letter expiration dates, and extension of deadlines for certain defined contribution pre-approved plans.

The IRS made the announcement in in Notice 2016-03. It did so in anticipation of the elimination, effective Jan. 1, 2017, of the five-year remedial amendment cycle system for individually designed plans under the employee plans determination letter program.

The notice provides that the Department of the Treasury and the IRS will issue guidance providing that:

  • controlled groups and affiliated service groups that have previously made a Cycle A election are permitted to submit determination letter applications during the Cycle A submission period beginning Feb. 1, 2016, and ending Jan. 31, 2017;
  • expiration dates on determination letters issued before Jan. 4, 2016, are no longer operative; and
  • the period during which certain employers may, on or after Jan. 1, 2016, establish or adopt a DC pre-approved plan and, if permissible, apply for a determination letter, is extended from April 30, 2016, to April 30, 2017.
Notice 2016-03 will be published in Internal Revenue Bulletin 2016-03 on Jan. 19, 2016.