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Showing results for tags 'internal revenue code § 401(a)'.
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A retirement plan, to tax-qualify under Internal Revenue Code § 401(a), must meet all conditions not only in the written plan but also in actual administration according to that written plan. The Internal Revenue Service’s Employee Plans Compliance Resolution System presumes the point; the Revenue Procedure defines an Operational Failure as one “that arises solely from the failure to follow plan provisions.” Rev. Proc. 2019-19, 2019-19 I.R.B. 1086, 1099 § 5.01(2)(b) (May 6, 2019). (Thank you, C.B. Zeller.) Unlike some other points made in the Revenue Procedure, this one cites no Treasury regulation as support for the point. Writers often say a plan must tax-qualify not only “in form” but also “in operation”. There are Treasury regulations and court decisions that support the in-form point. But I’m not (yet) seeing a regulation, court decision, or other law source that clearly states or supports the in-operation point. I’m hoping BenefitsLink mavens will teach me. Will you please help me?
