Rev. Proc. 2016-37 (June 29, 2016)
Available at https://www.irs.gov/pub/irs-drop/rp-16-37.pdf
The IRS has released a revenue procedure detailing anticipated changes to its determination letter program for individually designed plans. Previously, the IRS had announced that, beginning January 1, 2017, the remedial amendment and submission cycles for individually designed plans would be eliminated, and the scope of the determination letter program for individually designed plans would be restricted to initial plan qualification, qualification upon plan termination, and other limited circumstances (see our Checkpoint article). In addition to these anticipated changes, the revenue procedure provides for an extended remedial amendment period under Code § 401(b) for individually designed plans and modifies certain provisions of the six-year remedial amendment cycle for pre-approved plans to coordinate with the changes to the individually designed plan program.
We will cover this development in next week’s EBIA Weekly. Meanwhile, for background information, see EBIA’s 401(k) Plans manual at Sections XXVII.F (“Plan Qualification and Remedial Amendments”), XXVII.G (“Remedial Amendment Cycles”), XXVII.I (“Determination Letter: Individually Designed Plan”), and XXVII.L (“Advisory or Opinion Letter: Pre-Approved Plan”).
Contributing Editors: EBIA Staff.