Exemption from user fee

[Dougsbpc]

Suppose you have a volume submitter DB that was adopted 1/1/2002. The plan meets all of the requirements in the instructions. If the plan terminates 1/1/2008 and is submitted shortly thereafter, does it still qualify for the user fee exemption?

[John Feldt ERPA CPC QPA]

According to the Form 8717 instructions:

"The exemption from the user fee applies to all eligible employers (defined below) who request a determination letter within the first five plan years or, if later, the end of the remedial amendment period that begins within the first five plan years with respect to a plan. Under section 620 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), an application for a defined contribution plan from an eligible employer for a plan that was first effective on or after January 2, 1997, will automatically meet this requirement.

An application for a defined benefit plan from an eligible employer for a plan that was first effective on or after January 3, 1996, will automatically meet this requirement.

See Notice 2002-1, 2002-1 C.B. 283 as amplified by Notice 2003-49, 2003-2 C.B. 294."