Other IRS Resources
Plans Retroactively Adopted After the End of the Plan Year Have No 2020 Form 5500 Filing Requirement
Section 201 of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) permits an employer to adopt a retirement plan after the close of the employer's taxable year (by the due date, including extensions, for filing its tax return for the taxable year) and elect to treat the plan as having been adopted as of the last day of the taxable year. This provision applies to plans adopted for taxable years beginning after December 31, 2019.
If an employer adopts a plan during the employer's 2021 taxable year (but not later than the due date, including extensions, for filing the employer's 2020 tax return)
Instead, the first Form 5500 required to be filed with respect to the plan will be the 2021 Form 5500. However, the plan sponsor will be required to check a box on the 2021 Form 5500 indicating that the employer elects to treat the plan as retroactively adopted as of the last day of the employer's 2020 taxable year.
Additionally, if the plan is a defined benefit plan, the employer will be required to attach a 2020 Schedule SB to the 2021 Form 5500 or Form 5500-SF, in addition to a 2021 Schedule SB. The instructions for the 2021 Form 5500 will further explain the filing requirements for plans adopted retroactively.
We anticipate that similar rules will apply to the retroactive adoption of a plan pursuant to section 201 of the SECURE Act after an employer's 2021 taxable year.
Requesting Private Letter Ruling on Actuarial Issues
The IRS identified some common errors that have been causing delays in processing requests for actuarial private letter rulings. The list of tips and common errors should help reduce processing delays and improve your experience with the actuarial private letter ruling process.
Changes to IRS Correction Program for Retirement Plans
The IRS released Revenue Procedure 2021-30 that made significant changes to the Employee Plans Compliance Resolution System, including:
Issue Snapshots discuss retirement plan issues and include technical resources along with audit tips and issue indicators. The most recent Issue Snapshots from Employee Plans are:
Find answers to many of your retirement plan or IRA questions at IRS.gov/Retirement.
If you need help with an account-specific question, basic information about retirement plan forms or the status of pending applications, call our Customer Account Services at 877-829-5500.
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