Notice to Interested Parties - one notice for two plans sponsored by the same employer, permissible?

[Guest Bud]

Does anyone know whether it's ok to post one notice to interested parties that covers two different plans by the same employer. Our 401k plan and profit sharing plan are separate plans, with the same eligible employee classifications. Everything in the notice is the same except the names of the plans and the plan number. As long as right plan name clearly correspond to the right plan number, I don't see a problem. Does any see a problem with this? Has anyone done this?

Thanks

[JanetM]

I don't see a problem with it. Since they cover the same group with same eligibiltiy. Just make is clear the notice covers both plans.

[Kirk Maldonado]

Do the regulations shed any light on this issue?

[JanetM]

If you read 2001-1 IRB page 194 they say the notice must contain

.03 notice must contain

1 description identifying interested parties

2 name of plan, plan # and name of PA

3 name and EIN of applicant

4 that app for det letter will be filed

5 description of eligible participants

6 is IRS has issued determination

7 that addressee can comment and how to do so

8 due date for item 7

9 number of item 7 needed for DOL comment

10 where and how interested parties can find more information

No where in the reg does it say you can't combine the notice with other notice.

We did it after and acquisition few years back. One company - two DB plans and one DC. Salaried folks received on DB/DC letter and hourly got another DB/DC letter distinguishing the two DB plan. Saved some pennies on the mailing.

Come to think of it, I can't think of any mandated communication that the regs specifically cover the combination of plans issue.

Bud, you can get to IRB by going to IRS site at http://www.irs.gov/businesses/lists/0,,id=98230,00.html

[Kirk Maldonado]

JanetM:

I hate to be hyper-technical, but:

That is a Revenue Procedure, not a Treasry Regulation;

That is an out of date version of that Revenue Procedure. The IRS updates it every year, and you are looking at the 2001 version instead of the 2005 version; and

There is a Revenue Procedure that is more specifically aimed at determination letter applications for retirement plans, which is Revenue Procedure 2005-4.

However, I didn't read 2005-4 to make sure that it covered the points about the content of the notice. But a more authoritative source would be the regulations under section 7476.

[JanetM]

Thanks Kirk, will hunt them down. Didn't realize they changed this every year like clockwork.

[Guest HKZ]

In regard to a DC Plan - Does anyone know if the Notice to Interested Parties is required even if the Plan is not filing with the IRS for a favorable determinaton letter?

If yes, can you spare a sample copy? Thanks!

[No Name]

Thought that the purpose of the Notice was to inform interested parties of a pending filing. To my mind, no filing, no notice.