Is a new 1024 required?

[Scott]

A company recently amended its VEBA to add an offshore captive insurance arrangement as a new investment vehicle. In trying to determine whether a new Form 1024 must be filed, I came across this thread:

Thread

In the discussion, vebaguru and Kirk Maldonado believe that a new 1024 is required when a VEBA is amended, but I'm wondering what the authority for that position is. When I read Treas. Reg. section 1.505©-1T, Q&A-12, it doesn't appear that a VEBA that has received a determination ever has to file again.

Any thoughts?

[Kirk Maldonado]

I agree that you are not absolutely required to ever get a new determination letter.

However, I think that if there is a fundamental change to the plan, such as a complete restatement of the plan document by a new service provider, the prudent thing to do is to get a new determination letter. The cost isn't that much and the protection is worth it.

On the other hand, if the change is inconsequential, you need not get one.

For the cases that fall in between, it is a judgment call.

[Guest jfp]

Also, your determination letter probably says that you must/should come in again and apply for a new letter if the terms of the VEBA are amended.

[E as in ERISA]

Regardless of what you do with the 1014, disclosure of changes in the trust and its operations are required on the 990 that you file for the VEBA.

[Ron Snyder]

My suggestion that obtaining a new D-letter was necessary was based upon an oral representation to me by a senior person at National Office of IRS. He stated to me his view that IRS doesn't consider a D-letter valid if it is over 10 years old, or if there has been a significant amendment to the plan since the letter was issued.