Determ Letters

[Guest Ashley]

If an individually designed plan was adopted by 2-28-02, is the plan still required to submit for a determ letter by the 9-30-03 deadline? Thanks

[goldtpa]

Rev. Proc. 2002-73 extends the GUST remedial amendment period only for pre-approved plans until the later of September 30, 2003, or the end of the 12th month beginning after the date on which IRS issues a GUST opinion or advisory letter for the pre-approved plan.

This does not apply to indivdually design plans.

[david rigby]

No plan is required to file for a determination letter.

[Lynn Campbell]

I always thought, like PAX, that no Plan is required to apply for a determination letter. But based on the ASPA ASAP #03-18 in certain circumstances, the plan must be submitted by 9/30/2003. I would appreciate all comment on this matter. Thanks!

[KJohnson]

I didn't read the attachment but it is my understanding that you would not be a timely amender if you

1) Did not restate by 2/28/02 but are entitled to the extended 9/30/03 RAP because of prototype or volume submitter status/certification.

3) You "deviate" from your volume submitter or protoype plan.

4) You do not go in for a determ letter by 9/30/03.

While PAX is right that nobody has to go in for a letter, you do have to timely amend. If you deviate from the V.S. or prototype, did not amend by 2/28/02, and do not go in for a letter by 9/30/03 you will not be a timely amender.

[Lynn Campbell]

What about a situation where you amend for GUST after 2/28/02 and there is a modification to the Volume Submitter Language. However, before 9/30/03, you revise the GUST document so that there is no modification to the Volume Submitter Language. Are you required to submit the earlier document, regardless? The language which deviated from Volume Submitter Language in the 2002 Calendar Year was the benefit formula. For Calendar year 2003 we would remove the deviation by revising the benefit formula. Thanks for all input.

[E as in ERISA]

My understanding is that this is the first time that d-letters are actually required for a plan to be considered a timely amender -- but I'm interpreting it the same way as KJohnson -- that the rule applies only to modified prototype or volume submitter documents.

Question to Lynn Campbell: Was the modification operational for any period of time? If that is the case, then I think that you might want to consider filing (although I don't think the rules are clear). Or was it removed because it was an incorrect modification? In that case you might argue that you never had a modified volume submitter?

[Lynn Campbell]

Katherine - yes, the language was operational. For calendar 2002 year, we had a benefit formula (Defined Benefit Plan) which required deviation from volume submitter language. For calendar year 2003, we will use a benefit formula which fits within the volume language. Do I need to submit? Thanks.

[Guest cease]

Is there a deadline for individually designed plans?

[E as in ERISA]

February 28, 2002 for individually designed plans.

[Blinky the 3-eyed Fish]

Lynn, I don't believe you would have to submit. (I am going on logic here, so beware.) You have a restated GUST II word-for-word plan document that is adopted within the extended RAP. In my book that qualifies as meeting the requirements for not needing to submit to be granted the extended RAP.