GUST Restatement Deadline

[Guest pension222]

Consider a defined benefit plan, for which the end of the GUST remedial amendment period is December 31, 2001.

Does the amended document need to be adopted by 12/31/2001 or does the IRS require that the GUST amended document be filed for a determination letter by 12/31/2001?

I have been told that in order to take advantage of the GUST remedial amendment the IRS requires that the amended document be submitted for a determination letter no later than 12/31/2001. Is this true? I always thought that determination letters were not required.

Is there a Rev. Proc. or Rev. Ruling that addresses this?

Thanks.

[jpod]

The amendment deadline for a calendar year plan is 12/31/01. There is no requirement to request a determination letter. However, if you request a determination leter by 12/31/01, you will be able to make corrective amendments thereafter if the IRS says they are necessary.

[Guest pension222]

Thanks. I did not think there was a requirement for a determination letter, even with the GUST restatement.

Can you give me a site, perhaps a Revenue Ruling or a Revenue Procedure to back up your response.

[jpod]

I don't have handy a cite for the Rev. Proc. or other IRS notice that extended the GUST remedial amendment period to the end of the 2001 plan year, but it's obvious from your query that you agree that there is an extension to that date. The further extension attributable to filing a determination letter application by the end of the remedial amendment period is derived from the IRS' regulations at Section 1.401(B)-1(e)(3).

[Guest sdolce]

If you're using some from of pre-approved plan such as a prototype or volume submitter you actually have until the later of 12/31/02 or 12 months after the plan sponsor receives its approval from IRS.All your client has to do is sign a certification that he intends to use the plan. This must be done by12/31/01.The certification requirement is found insection 19.03 of Rev. Proc. 2000-20. The "12- month rule" is found in Notice 2001-42. There is probably something earlier, but that notice also talks about the effect of EGTRRA on GUST restatements.

[David]

Regarding pre-approved plans, I understand that if you sponsor a DB and a DC plan, you have 12 months from the latest IRS approval. In other words, if your DB plan is approved later than your DC, you have 12 months from that date for both the DB and DC plans.