Guest Article

(From the October 3, 2011 issue of Deloitte's Washington Bulletin, a periodic update of legal and regulatory developments relating to Employee Benefits.)

IRS Revises Form 5300 Application for Determination

A revised Form 5300 and related Instructions are now available on the IRS website. Although substantially similar to the previous September 2001 version, the new Form 5300 incorporates questions that reflect the new remedial amendment cycles and other changes made by Revenue Procedure 2007–44.

The new Form 5300 requires the plan sponsor to specify the number of amendments included with the request, the date the amendments were signed and the date they became effective. Consistent with the prior version, if a copy of the latest determination letter is not available (or no determination letter has ever been received) the sponsor is instructed to include "copies of the prior plan or adoption agreement and all subsequent amendments and/or restatements.:

The new Form requires the sponsor to indicate whether the plan is being filed "on-cycle" and, if not, the reason the plan is being submitted off-cycle (i.e., new plan exception, urgent business need, or a cycle-changing event) and whether priority consideration is being requested. Further, the Form asks whether the controlled group has made a "Cycle A" election and, if so, the Instructions require a copy of the election to be included. The sponsor is asked whether the plan was involved in a merger that was not considered in a prior favorable determination letter, and the Instructions require inclusion of additional information in that case (e.g., name of plans, type of plans, dates of mergers, and verification that each plan was qualified). Expanded questions are now included on multi-employer plans, foreign plans and foreign trusts, and whether any issue related to the plan is pending before the IRS, DOL, PBGC, voluntary compliance resolution program of the EPCRS or EBSA, or any court.

While Form 5307 is still to be used in applications for determination for adopters of master or prototype or volume submitter plans, the Instructions indicate that Form 5300 is to be used if those adopters are requesting a determination on affiliated service groups, leased employees, or a partial termination.

The information in this Washington Bulletin is general in nature only and not intended to provide advice or guidance for specific situations. If you have any questions or need additional information about articles appearing in this or previous versions of Washington Bulletin, please contact: Robert Davis 202.879.3094, Elizabeth Drigotas 202.879.4985, Mary Jones 202.378.5067, Stephen LaGarde 202.879.5608, Erinn Madden 202.220.2692, Bart Massey 202.220.2104, Tom Pevarnik 202.879.5314, Sandra Rolitsky 202.220.2025, Deborah Walker 202.879.4955. Copyright 2011, Deloitte.