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Posted

Employee was allowed to participate from day 1, when plan has a 1 YOS requirement. Only one ee (a Non-Highly) was affected.

ECPRS Appendix B, Section 2.07 contains the rules for retroactively amending the plan to conform to the operations. In the examples, they indicate that the amendment was submitted for a determination letter.

I don't think today I am even permitted to submit my pre-approved document (or an amendment thereto) for a determination letter.

So can I do the amendment without submitting for a DL?

Austin Powers, CPA, QPA, ERPA

Posted

No, you don't submit to a DL.

However, you include as a reason for why you are not submitting for a DL :"PLAN USES A PREAPPROVED DOCUMENT". It is then, treated the same as if you submitted. I do it is all the time as I once faced this question and it is what the IRS agent instructed me to do.

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

Posted

If you are looking for a cite, Rev. Proc. 2013-12, Section 6.05(1)(b) refers you to 6.05(1) when determining if you need to file for a determination letter on an SCP corrective amendment. 6.05(1) says if you correct using a pre-approved document don't submit for a letter.

Posted

I thought it was a nice apology and I had accepted it but now I am not so sure...

I didn't think the apology confirmed the question I had though.

Austin Powers, CPA, QPA, ERPA

Posted

Thought brevity was called for (and I was typing on a tablet).

I'm sorry you don't want to submit. There are no amendments I'm aware of that are meant to fix things that can be handled under SCP. [And before someone shouts -11g at me, keep in mind that isn't a SCP issue; it is specifically authorized by the reg.]

So, sorry, but if you are doing a retroactive amendment you have to submit under EPCRS.

Am I wrong on this? Did the latest (2015) changes to EPCRS authorize certain retroactive amendments to conform the plan document to actual plan operation in certain circumstances without a required VCP filing? Nothing would surprise me.

Posted

It is indeed! I had forgotten there were limited exceptions to the general rule. Thanks!

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