IRS Limits Scope of Qualified Retirement Plan Determination Letter Program: Employment Law Manual Updated, Legal Timetable Entry Added

Author: Tracy Morley, XpertHR Legal Editor

The IRS has modified the program under which sponsors of individually designed qualified retirement plans may apply for a determination letter confirming that the plan meets Internal Revenue Code requirements. The staggered five-year remedial amendment cycle has been eliminated, effective January 1, 2017. Determination letters will be issued only for new and terminating plans and under other limited circumstances to be determined by the IRS and the Treasury Department. The IRS stopped accepting off-cycle determination letter applications as of July 21, 2015.

In light of this development, the following federal sections of the Employment Law Manual have been updated:

A Legal Timetable entry has also been added.