In a Revenue Procedure, IRS has extended the deadline, for submitting on-cycle applications for opinion letters for pre-approved defined contribution (DC) plans for the third 6-year remedial amendment cycle, to Dec. 31, 2018. Previously, this submission period was scheduled to expire on Oct. 1, 2018.
Background. Under Rev Proc 2016-37, 2016-29 IRB 136, every pre-approved plan has a regular, 6-year remedial amendment cycle. Under Rev Proc 2016-37, the third 6-year remedial amendment cycle for pre-approved defined contribution plans began on Feb. 1, 2017, and ends on Jan. 31, 2023. That Revenue Procedure also provides that the 12-month on-cycle submission period for pre-approved defined contribution plans was scheduled to begin on Aug. 1, 2017, and end on July 31, 2018.
Rev Proc 2017-41, 2017-29 IRB 92, modified the pre-approved letter program by combining the master & prototype and volume submitter programs into a new Opinion Letter program. (See “Master & prototype and volume submitter programs combined into one program.”) Under this program, providers of pre-approved plans may apply for new opinion letters once every six years.Rev Proc 2017-41 set out the procedures for obtaining opinion letters for qualified pre-approved plans submitted with respect to the third (and subsequent) 6-year remedial amendment cycles. Rev Proc 2017-41 modified the on-cycle submission period for pre-approved defined contribution plan providers to submit applications for opinion letters for the third six-year remedial amendment cycle to begin on Oct. 2, 2017, and end on Oct. 1, 2018.
New guidance. Rev Proc 2018-42 extends the Oct. 1, 2018 submission deadline in Rev Proc 2017-41 to Dec. 31, 2018. Accordingly, Rev Proc 2017-41, Sections 1.02, 3.10, and 9.02, are revised to replace Oct. 1, 2018, with Dec. 31, 2018.
Effective date. Rev Proc 2018-42 is effective as of Aug. 15, 2018.
References: For pre-approval of master and prototype and volume submitter plans in IRS opinion and advisory letters, see FTC 2d/FIN ¶T-10630 et seq. For pre-approval of Code Sec. 403(b) plans in IRS opinion and advisory letters, see FTC 2d/FIN ¶T-10720 et seq. For the remedial amendment cycle, see FTC 2d/FIN ¶H-8761 et seq.; United States Tax Reporter ¶4014.08.