User fee exemption for DB Plans on 5300 filing?

[Dennis Povloski]

The 8717 instructions describe an exemption from the User fee "...that applies to all eligible employers 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...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..."

I'm submitting the 5300 for a cash balance plan that was originally effectiving 1/1/2000, and is on Cycle D. The plan received a determination letter on 2/13/2003.

Does this exemption apply to my plan?

Thanks!

[Trekker]

We have submitted several EGTRRA restatements for Cash Balance Plans. Most have an initial effective date in 2002 and have GUST letters. If they meet the other criteria (less than 100 employees and at least one NHCE benefits), we have not sent in a user fee and have had none of the apps returned.

We submitted a Cycle D today and, but for the fact that there were more than 100 employees, the plan would be exempt from the fee. Original effective date was 2002.

[Dennis Povloski]

Awesome! Thanks for verifying that.