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GUST Determination Letter Deadline - Individually Designed Plans


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For non-governmental plans, it's the last day of the first plan year that begins in 2001. Unless you have a short plan year in 2001, the deadline will be 12/31/01 for a calendar year plan and will be in 2002 for non-calendar year plans.

But .... watch the news for an extension of this general deadline. It's expected that the IRS will issue an extension due to the Sept. 11 events. That extension might only be for another month or so for entities that aren't in Manhattan.

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Did the extension for submitting individually designed plans go through yesterday? If so, where do I find confirmation of same. Is this a done deal, or just an informed rumor? An extension would definitely make the holidays more enjoyable!

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TA-DA!

It's too long to paste into one message so it all is not here.

Rev. Proc 2001-55 - GUST DEADLINE EXTENDED

Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.201: Rulings and determination letters

(Also, Part I, §§ 401; 1.401(B)-1.)

Rev. Proc. 2001-55

SECTION 1. PURPOSE

This revenue procedure extends the GUST "GUST" refers to the

following:

· the Uruguay Round Agreements Act, Pub. L. 103-465;

· the Uniformed Services Employment and Reemployment Rights Act of

1994,

Pub. L. 103-353;

· the Small Business Job Protection Act of 1996, Pub. L. 104-188;

· the Taxpayer Relief Act of 1997, Pub. L. 105-34;

· the Internal Revenue Service Restructuring and Reform Act of 1998,

Pub. L. 105-206; and

· the Community Renewal Tax Relief Act of 2000, Pub. L. 106-554.

remedial amendment period under § 401(B) of the Code for qualified

retirement plans. First, the revenue procedure extends the GUST

remedial

amendment period for all plans to February 28, 2002, if the period would

otherwise end before then. Second, the revenue procedure provides an

additional extension to June 30, 2002, for plans that were directly

affected by the September 11, 2001, terrorist attack on the United

States

(the "Terrorist Attack"). Finally, the revenue procedure provides that

in

cases of substantial hardship resulting from the Terrorist Attack the

Service may, in its discretion, grant additional extensions of the GUST

remedial amendment period to particular plans up to December 31, 2002.

SECTION 2. BACKGROUND

.01 Under § 401(B), plan sponsors have a remedial amendment period

in

which to adopt plan amendments for GUST. The end of the GUST remedial

amendment period is the deadline for making all GUST plan amendments and

other plan amendments specifically enumerated in Rev. Proc. 99-23,

1999-1

C.B. 920. The GUST remedial amendment period also applies with respect

to

all disqualifying provisions of new plans adopted or effective after

December 7, 1994, and with respect to all plan amendments adopted after

December 7, 1994, that would cause an existing plan to fail to be

qualified.

.02 Rev. Proc. 2000-27, 2000-26 I.R.B. 1272, provides that the

GUST

remedial amendment period for nongovernmental plans ends on the last day

of

the first plan year beginning on or after January 1, 2001. This is also

the end of the remedial amendment period for the Tax Reform Act of 1986

(TRA '86) for nonelecting church plans. The GUST remedial amendment

period

for governmental plans, as defined in § 414(d), ends on the later of (i)

the last day of the first plan year beginning on or after January 1,

2001,

or (ii) the last day of the first plan year beginning on or after the

"2000

legislative date" (that is, the 90th day after the opening of the first

legislative session beginning after December 31, 1999, of the governing

body with authority to amend the plan, if that body does not meet

continuously). This is also the end of the TRA '86 remedial amendment

period for governmental plans.

.03 Rev. Proc. 2000-20, 2000-6 I.R.B. 553, as modified by Rev.

Proc.

2000-27 and Notice 2001-42, 2001-30 I.R.B. 70, provides an extension of

the

GUST remedial amendment period for employers who, by the end of the GUST

remedial amendment period (determined without regard to the extension),

have adopted a pre-approved plan (that is, a master or prototype or

volume

submitter plan) or certified their intent to adopt such a plan. If the

requirements for the extension are satisfied, the GUST remedial

amendment

period for the employer's plan will not end before the later of December

31, 2002, or the end of the 12th month beginning after the date on which

the Service issues a GUST opinion or advisory letter for the

pre-approved

plan.

.04 Rev. Proc. 2001-6, 2001-1 I.R.B. 194, contains the Service's

procedures for issuing determination letters on the qualified status of

employee plans under §§ 401(a), 403(a), 409 and 4975(e)(7) of the Code

and

the exempt status of related trusts or custodial accounts under §

501(a).

.05 Section 1.401(B)-1(f) of the Income Tax Regulations provides

that, at his discretion, the Commissioner may extend the remedial

amendment

period or may allow a particular plan to be amended after the expiration

of

its remedial amendment period and any applicable extension of such

period.

In determining whether such an extension will be granted, the

Commissioner

shall consider, among other factors, whether substantial hardship to the

employer would result if such an extension were not granted, whether

such

an extension is in the best interest of plan participants, and whether

the

granting of the extension is adverse to the interests of the government.

SECTION 3. GENERAL EXTENSION OF REMEDIAL AMENDMENT PERIOD TO FEBRUARY

28,

2002

.01 The GUST remedial amendment period is extended to February 28,

2002, if the period would otherwise end before then. This extension

applies to all GUST plan amendments, including all those plan amendments

specifically enumerated in Rev. Proc. 99-23. In addition, this

extension

applies with respect to all disqualifying provisions of new plans

adopted

or effective after December 7, 1994, and with respect to all plan

amendments adopted after December 7, 1994, that would cause an existing

plan to fail to be qualified.

.02 The TRA =86 remedial amendment period for governmental plans

and

nonelecting church plans is also extended to February 28, 2002, if the

period would otherwise end before then.

.03 This extension also applies to the time by which an employer

must

either adopt a pre-approved plan or certify its intent to adopt such a

plan

in order to be eligible for the extension of the GUST remedial amendment

period under Rev. Proc. 2000-20, as modified.

SECTION 4. EXTENSION OF REMEDIAL AMENDMENT PERIOD TO JUNE 30, 2002, FOR

PLANS DIRECTLY AFFECTED BY THE TERRORIST ATTACK

.01 The extension of the remedial amendment period provided by

this

section applies only to plans directly affected by the Terrorist Attack,

as

defined in sections 4.02 and 4.03 of this revenue procedure.

.02 For purposes of the revenue procedure, a plan will be

considered

to be directly affected by the Terrorist Attack if any of the following

were located at the time of the attack in the area of the New York City

borough of Manhattan bounded on the north by 14th Street: the principal

place of business of any employer that maintains the plan; the office of

the plan or the plan administrator; the office of the primary

recordkeeper

serving the plan; or the office of an attorney, enrolled actuary,

certified

public accountant or other advisor retained by the plan (or by the

employer

with respect to issues involving the plan). A plan will also be

considered

to be directly affected by the Terrorist Attack if any individual

required

under the terms of the plan or corporate rules to approve plan

amendments,

the plan administrator, or an attorney, enrolled actuary, certified

public

accountant or other advisor retained by the plan (or by the employer

with

respect to issues involving the plan) was injured or killed or is

missing

as a result of the Terrorist Attack.

.03 A plan sponsor of a plan that is not described in section 4.02

may ask the Service to designate the plan as directly affected by the

Terrorist Attack if the plan sponsor's ability to amend the plan and

file a

determination letter application has been severely impaired as a direct

result of the Terrorist Attack. Upon a showing of such directly

related,

severe impairment, as determined by the Service in its discretion, the

Service will designate the plan as directly affected by the Terrorist

Attack. The plan sponsor's request should be sent to the following

address:

Manager, EP Determinations

Attention: RAP Extension Coordinator

550 Main Street

Room 5106

Cincinnati, Ohio 45202

The request must be made by the later of December 31, 2001, or the 60th

day

preceding the end of the plan's GUST remedial amendment period

(determined

without regard to the extensions under this revenue procedure). The

request must explain how the Terrorist Attack has directly and severely

impaired the ability to amend the plan and file a determination letter

.

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Good news sure travels fast! Thank you MGB for giving us the advance notice and thank you KJohnson for posting the rev proc for us. I'm going home at a decent hour tonight!

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I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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MarZ,

Your question is backwards; rather than "does not need to be signed until", you mean "needs to be signed before" (instead of being signed before 12/31).

Yes, the deadline is for signing the letter of intent is also extended.

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