8717 - small plan fee waiver

[Gilmore]

If an "eligible plan" was effective January 1, 2001, submitted for GUST and received a waiver of the User Fee, is that plan eligible for another waiver if submitting again for the EGTRRA restatement. Plan is on a prototype document.

I thought the waiver was a one time waiver for the first letter submitted for. But now we are getting responses back from reviewing agents suggesting that the plan might be eligible for the waiver and do we want the $300 back.

Thanks!

[J Simmons]

I think the reviewing agents are correct on this one.

[Bird]

Yes. We submitted a plan for a termination DL that had received a waiver of the 5307 fee on adoption and they pointed out that it was (still) eligible for the waiver.

[Gilmore]

Thanks very much for your replies.

[John Feldt ERPA CPC QPA]

DC plans: 1/2/1997

DB plans: 1/3/1996

From the 8717 instructions:

Exemption from User Fee

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. Undersection 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.