IRS Rev. Proc. 2024-4 Updates the Determination Letter Program | Practical Law

IRS Rev. Proc. 2024-4 Updates the Determination Letter Program | Practical Law

The Internal Revenue Service (IRS) issued Revenue Procedure 2024-4 (Rev. Proc. 2024-4), which makes changes to the determination letter program and user fees.

IRS Rev. Proc. 2024-4 Updates the Determination Letter Program

Practical Law Legal Update w-041-8578 (Approx. 3 pages)

IRS Rev. Proc. 2024-4 Updates the Determination Letter Program

by Practical Law Employee Benefits & Executive Compensation
Published on 04 Jan 2024 • USA (National/Federal)
The Internal Revenue Service (IRS) issued Revenue Procedure 2024-4 (Rev. Proc. 2024-4), which makes changes to the determination letter program and user fees.
On January 2, 2023, the IRS published Revenue Procedure 2024-4 (Rev. Proc. 2024-4), which updates Rev. Proc. 2023-4 (see Legal Update, IRS Rev. Proc. 2023-4 Updates the Determination Letter Program) and makes changes to:

Changes to Rev. Proc. 2023-4

Rev. Proc. 2024-4 includes changes to Rev. Proc. 2023-4 and provides:
  • General information about the types of advice provided by the IRS Tax Exempt and Government Entities Division, Employee Plans Rulings and Agreements Office (Employee Plans Rulings and Agreements).
  • General procedures for letter ruling and determination letter requests.
  • Specific procedures for determination letter requests.
  • The user fees for advice requested from Employee Plans Rulings and Agreements.

Requesting Determination Letters

Rev. Proc. 2024-4 modifies the determination letter program to:
  • Reflect Rev. Proc. 2023-37, which combined and updated the rules for qualified pre-approved plans and Code Section 403(b) pre-approved plans (Sections 1, 4, 5, 8, and 31; see Legal Update, IRS Updates Rules for Qualified and 403(b) Pre-Approved Plans in Rev. Proc. 2023-37).
  • Provide that Form 5300, Application for Determination for Employee Benefit Plan, Form 5307, Application for Determination for Adopters of Modified Nonstandardized Pre-Approved Plan, Form 5310, Application for Determination for Terminating Plan, and Form 5316, Application for Group or Pooled Trust Ruling must be submitted electronically via www.pay.gov (Section 6).

Updated User Fees

Regarding user fees, Rev. Proc. 2024-4 revises Appendix A, which provides a schedule of user fees, to update the user fees relating to:

Practical Implications

Retirement plan sponsors and practitioners should be aware of the changes to the determination letter procedures and IRS fees instituted by Rev. Proc. 2024-4. Rev. Proc. 2024-4 generally took effect on January 2, 2024. Certain user fee changes are effective on July 1, 2024.