Determination Letter Needed or Word For word adoption?

[PMC]

Debate re- whether a plan needs to file for a determination letter -

Ann. 2001-77 indicates an employer can rely on the

opinion letter only if it has not added any terms to the approved Prototype and has not modified any of the terms of the document other than "choosing options permitted under the document..."

As with most, the Adoption Agreement we use has an "Other" box which can be selected and the option written in. For example, if a plan wants quarterly or monthly entry dates the "other" box is selected and the entry dates written in.

Would you consider this adding to or modifying the terms of the plan and thus file for a LoD, or would you view this as still choosing an option under the plan, albeit the "other" box that needs specifics written in, and not file and can the plan rely on the opinion letter?

[jaemmons]

I don't believe you need to file for a DL. If the prototype allows for this selection and the IRS has issued a qualified opinion letter to the sponsor regarding the plan language, you aren't modifying anything contained within the AA or base document.

If you had added the "Other" selection, then you have modified the prototype and lose the automatic reliance on the sponsor's form letter.