IRS Intends to Issue Opinion and Advisory Letters for Pre-Approved Defined Benefit Plans for the Second Six-Year Remedial Amendment Cycle | Practical Law
On March 9, 2018, in Announcement 2018-05, the Internal Revenue Service (IRS) announced that it intends to issue opinion and advisory letters for pre-approved defined benefit plans for the second six-year remedial amendment cycle. The Announcement also discusses an extension of the deadline to adopt certain pre-approved defined benefit plans. The IRS announced the opening of the determination letter program for certain pre-approved defined benefit plans.
An extension of the deadline to adopt certain pre-approved defined benefit plans. The Announcement extends the end of the pre-approved defined benefit plan's remedial amendment cycle with respect to changes included in the 2012 Cumulative List from January 31, 2019 (as provided in Rev. Proc. 2016-37) to April 30, 2020. An employer with a defined benefit plan that is eligible for the six-year remedial amendment cycle under Rev. Proc. 2016-37 that adopts an approved M&P or VS plan by April 30, 2020 will be considered to have adopted the plan within the second six-year remedial amendment cycle. Under Section 14.03 of Rev. Proc. 2016-37, the IRS publishes an announcement providing the date by which adopting employers must adopt newly approved plans. This deadline:
is announced when the review process for a cycle of pre-approved plans has neared completion; and
provides adopting employers approximately two years to adopt plans and, if eligible, to apply for an individual determination letter (see Retirement Plan Determination Letters Toolkit).
The opening of the determination letter program for certain pre-approved defined benefit plans. An adopting employer of an M&P or VS plan may apply for an individual determination letter (if eligible) during the period beginning May 1, 2018, and ending April 30, 2020.
That it intends to announce in future guidance a delayed beginning date for the third six-year remedial amendment cycle. Under Section 16.01 of Rev. Proc. 2016-37, the third remedial cycle is supposed to begin on February 1, 2019.