Favorable Letter Requirement

[Guest CMC]

Does a plan have a "Favorable Letter" within the meaning of Rev. Proc. 2001-17 if it has a favorable letter that considers TRA '86 but, after receipt of that letter, was amended and restated on a new document?

Although the new document began as a prototype, because of certain changes made to it, it is now an individually designed plan, so we can't rely on the prototype's letter.

The plan was initially adopted after December 7, 1994, so if we haven't already got a "Favorable Letter," I guess the way to satisfy the requirement is to submit a determination letter request on the amended and restated plan, including GUST amendments, before 12/31/01.

Any thoughts though on whether the letter we've already got is adequate?

[k man]

My opinion is yes the plan has a "favorable letter." The basis for my opinion is Rev. Proc 2001-17, Section 5 (Definitions), .01(4)(a). "....a plan has a favorable letter if either (a) the Plan has a favorable determination letter....that considers TRA 1986."

[chris]

CMC:

Did you ever resolve this issue? I've got a plan in need of correction, but the most recent document provider used by the plan went out of business and I don't think the volume submitter document was ever submitted to the IRS. Just curious if you submitted the plan and what response the IRS gave you.