Posts Categorized: IRS Examinations

A Roadmap for the Post-Determination Letter Era

in IRS Examinations, Qualified Plans, Retirement Plans

In July of 2015, the IRS announced that it would end its regular determination letter program for individually designed plans effective January 1, 2017.  At the time of this announcement, many plan sponsors and other interested stakeholders expressed concern about how this seismic change would impact the retirement plan landscape. In several pieces of guidance issued in 2016, the IRS has answered many of the questions as to how the end of the determination letter program will impact qualified retirement plans.  Click here for more information.

End of Determination Letter Program: Nearly a Year Later, the Future is Still Uncertain

in IRS Examinations, Qualified Plans, Retirement Plans

It has been nearly a year since the IRS generated shockwaves in the retirement plan community by announcing its intention to end its regular, periodic determination letter program for qualified retirement plans due to budget constraints. (See our previous posts on the end of the regular determination letter process here and here.) The Advisory Committee on Tax Exempt and Government Entities’ 2016 Report of Recommendations (“Advisory Committee Report”), released on June 8, 2016, shows that the uncertainties caused by the IRS’s announcement have largely been left unresolved. Under the determination letter process, employers can periodically apply for an IRS determination… Continue Reading

IRS Announces Future Determination Letter Guidance in Notice 2016-03

in IRS Examinations, Qualified Plans, Retirement Plans, Tax Issues

In Notice 2016-03, the IRS provides an overview of guidance it intends to release to implement certain aspects of its decision to end the regular determination program, effective January 1, 2017, which it previously announced in Announcement 2015-19. (See this entry). Notably, employers may rely on the guidance issued in Notice 2016-03 until further guidance is issued. Notice 2016-03 provides that: • Controlled group members, including affiliated service group members, that maintain more than one plan may file for determination letters during the Cycle A submission period beginning February 1, 2016 and ending January 31, 2017, provided a Cycle A… Continue Reading

Final Annual Funding Notice Requirements for Defined Benefit Plans

in IRS Examinations, Retirement Plans

On January 30, 2015, the DOL issued final regulations implementing the annual funding notice requirements for defined benefit pension plans under ERISA Section 101(f). The final rule is applicable to notices for plan years beginning on or after January 1, 2015 (that is, for calendar year plans, the annual funding notice provided in 2016). However, plan administrators may elect to comply with the final requirements prior to this date. Overall, the final regulations are substantially similar to the proposed regulations (issued in November 2010), but there are some changes and modifications. Some of the highlights of the final regulations are… Continue Reading