automatic rollover nonamender

[Guest Philip2]

Client failed to adopt automatic rollover amendments. Rev. Proc. 2006-27 says that the nonamender fee is $375 for each year of the failure for "interim amendments" as provided in section 5 of Rev. Proc. 2005-66. I've read 2005-66 and I can't figure out whether the automatic rollover amendments qualify as "interim amendments." Anyone have an opinion on this? (Client has multiple plans, so real money is involved here).

Second question--what is each year of the failure? Do I include 2005, the year it should have been adopted, or does the failure start 1/1/06?

[John Feldt ERPA CPC QPA]

The plan pays a flat $375 fee in their submission under EPCRS.

In the original version of Revenue Procedure 2006-27 it stated "for each year of the failure", but in the final published (and official) version, that clause was removed.

Go to page 51 of the pdf file: http://www.irs.gov/pub/irs-drop/rp-06-27.pdf

You'll see that the last sentence of 12.03 no longer has the clause "for each year of the failure".

Hope that helps!