cross-tested volume submitter plans

[eilano]

We are currently using the Corbel cross-tested volume submitter plans. It is our understanding that as long as we do not significantly change the language in the plan, we do not have to submit the document to the IRS for a determination letter. Is this correct?

[chris]

My understanding is that "any" change to the plan language will necessitate submission of the document to the IRS for review. For example, I amended and restated a PSP which added cross-testing where the number of classes was in excess of those allowed for in Corbel's checklist. Thus, I'll need to submit the document for approval as to the form in order to be able to rely on Corbel's volume submitter letter.

[g8r]

As Chris stated, ANY change destroys reliance. Once you no longer have reliance, you must submit the plan for a determination letter if you are using the GUST extension to update. Also, while I would take the position that Chris has taken regarding the addition of different classes, I could certainly make an argument that merely adding additional classes because the approved plan didn't include enough isn't really a modification. Again, it's an argument and to be safe, I'd submit.

Where a minor change will make a difference is that if you must submit, if the change is minor then you can still qualify for the lower user fee (generally $125). If the change is major (in the eyes of the IRS), then you have to submit the plan as an individually designed plan. Also, keep in mind that under GUST, there may not even be any user fees for certain small employer plans.