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May multiple-employer plan go volume submitter


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Client maintains a fairly simple plan that will be restated and submitted under the volume submitter program once the program is open. In the meantime, another employer has adopted the plan. There is a relationship between the two employers but not enough to be a controlled or affiliated service group.

But for the multiple-employer situation, the plan would be restated in due course under the volume submitter program with a $300 user fee.

Since multiple-employer plans are in Cycle B, must it be restated this year and submitted on a 5300, with a $1000 filing fee?

I have 8905 forms signed by each of the two employers and had planned to submit with the volume submitter adopters. But I just remembered that multiple employer plans may not use Form 5307.

I think I have come to the unfortunate conclusion that this little plan must go under 5300 in Cycle B.

Can anyone convince me otherwise?

Thank you.

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Not sure I can convince you, but....

The rules on multiple employer plan documents are somewhat confusing. The reason is because you can have a multiple employer plan under a volume submitter plan. If you look at Rev. Proc. 2005-16 and the rules for prototypes (where you are prohibited from having multiple employer plans), you won't see the same prohibition in the rules for volume submitter plans.

So, if you happen to use a volume submitter that includes the multiple employer plan provisions that you want, then you have reliance on the plan and don't need to submit for a determination letter. But, unlike the normal volume submitter rules, if you need to deviate from the volume submitter language in any way, should you decide to submit for a determination letter, you must use 5300 with the higher user fee. Normally with a volume submitter you can submit using Form 5307 if the changes you make are minor. It appears that with a multiple employer plan, even a minor change means you have to use 5300 (if you decide to submit).

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  • 3 weeks later...
  • 2 weeks later...
Guest amycavanaugh
Thanks, Bob. We will submit with a 5300 this year. When it comes to submissions, it's better to be safe than late!

Interestingly, while multiple employer language is allowed in a volume submitter plan, the 5300 and 5307 seem to be clear that the submission is on a 5300. I have yet to get a solid answer on this disconnect, but have a call into the Document people at the IRS and will update you once I have some clarity on this matter.

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