Minor deviations from master volume submitter

[Gudgergirl]

I have been told that minor deviations from a master volume submitter do not prevent an adopting employer from relying on the volume submitter advisory letter. (I disagree) This was told to me by someone who ususally knows what she is talking about so I am curious as to other's views.

Also, if there are minor deviations from a master volume submitter, does one use a 5307 or a 5300 in requesting an individual determination letter? I suspect 5307 but would like to know if anyoneknows for sure.

Thanks for any assistance.

[Blinky the 3-eyed Fish]

Minor changes that are typographical or reference errors keep the reliance. Beyond that any changes are modifications that lose the reliance on the VS determination letter. I believe Rev. Proc. 2007-44 goes into this.

Modifications to the language, depending how many and how much is changed, may or may not take it out of VS status and make it an individually designed plan. You might as well submit under a 5307 and make the IRS tell you that you need to submit under a 5300. Minor changes clearly do not take you out of 5307 status though.

[Guest Sieve]

Language which specifically protects specific benefits-rights-features (listed, e.g., on an Appendix) also would not take a plan out of prototype or reliance (it is my understanding).

Remember, though, that the only reliance you have in a prototype is language--not operational. So, not all language added to a prototype--especially a volume submitter or a non-standardized--will actually have an adverse impact on the ultimate qualified status of the plan.

[Kevin C]

We have submitted modified VS documents with what I consider to be fairly significant changes using Form 5307 and still received determination letters. One example is a money purchase plan VS document with language added to provide a match based on 403(b) deferrals. The agent on that one told me she wasn't sure it would be considered a minor modification. When I reminded her the prior restatement of the plan received a determination letter using Form 5307, she dropped the issue.

[Gudgergirl]

Thanks everyone.