Cycle E

[30Rock]

What is the deadline for a Cycle E filer to adopt a pre approved plan if they are currently on an individually designed plan? If they sign an 8905 do they have until Jan 31, 2011 the cycle E deadline or do they have to adopt the plan by April 31, 2010?

Thanks!!

[traveler]

Did you ever get an answer to this question? I was just wondering the same thing.

[John Feldt ERPA CPC QPA]

You have entered a maze of twisty passages. The Form 8905 does not apply to plans in cycle E - see Rev. Proc. 2005-66, Section 17.04 which states

"If the employer’s five-year remedial amendment cycle ends with or after the applicable six-year remedial amendment cycle, the employer must adopt the current pre-approved plan rather than execute Form 8905."

Now look at the improved version of 2005-66, which is 2007-44, section 17.04:

However, if the employer’s five-year remedial amendment cycle ends during or after the announced adoption period described in section 16.03 and 16.04 associated with the applicable six-year cycle, rather than execute Form 8905, the employer should instead adopt the

newly approved version of a pre-approved plan

(and will be treated as a new adopter under section 17.03).

Section 17.03(3) confuses me:

An employer may only adopt an interim or an existing pre-approved plan that is

not the newly approved version of the plan

if the employer adopts such plan

before the beginning of the adoption period described in section 16.03 and 16.04 during the applicable six-year cycle

. Such an employer must re-adopt either the

newly approved version of the same plan or a newly approved version of a different pre-approved plan

during the adoption period. Any employer whose five-year cycle has not ended may adopt a plan during or after the adoption period, but such employer must adopt the

newly approved version of a preapproved plan

.

And sections 16.03 and 16.04:

.03 When the review of a cycle for pre-approved plans has neared completion (after approximately a two-year review process),

the Service will publish an announcement providing the date by which adopting employers must adopt the newly approved plans

. This will be a uniform date that will apply to all adopting employers. Depending upon the length of the review process, it is expected that this date will give virtually all employers approximately a two-year window to adopt their updated plans.

For purposes of this revenue procedure, an adopting employer means an employer who satisfies the requirements described under section 17 of this revenue procedure

.

.04 An adopting employer that adopts the approved M&P or VS plan by the announced deadline will have adopted the plan within the employer’s six-year remedial amendment cycle.

The announced deadline will be the end of the plan’s remedial amendment cycle

with respect to all disqualifying provisions for which the remedial amendment period would otherwise end during the cycle.

I think April 30, 2010 is your deadline because that's when the RAP ends for these pre-approved plans. I could be wrong, in haste we might have entered a twisty maze of passages instead of a maze of twisty passages, reaching a twisted conclusion.