Restatement Deadlines for Defined Benefit Plan Sponsors
The IRS has provided guidance on restatement deadlines for plan sponsors of defined benefit plans that utilize an IRS pre-approved document. The adoption period for plan sponsors to restate their plans using a 3rd cycle document began on April 1, 2023 and ends on March 31, 2025.
Individual Determination Letter Application Period
Plan sponsors who require an individual determination letter due to minor modifications to a pre-approved defined benefit plan can submit their applications to the IRS using Form 5307 from April 1, 2023, through March 31, 2025. This application window is specifically for sponsors of defined benefit plans using a 3rd cycle pre-approved document.
Submission Period for 4th Cycle Defined Contribution (DC) Opinion Letters
For pre-approved plan providers and mass submitters seeking a 4th remedial amendment cycle (RAC) DC Opinion Letter, it is advised to wait until the IRS announces the opening of the one-year on-cycle submission window. The 3rd pre-approved DC RAC concluded on January 31, 2023, marking the beginning of the 4th RAC on February 1, 2023. However, the submission window for the 4th RAC has not yet been opened. We anticipate an announcement later this year, setting the on-cycle submission window for plan providers from February 1, 2024, through January 31, 2025.
Deadline for Second Cycle 403(b) Pre-Approved Plan Providers
The submission period for 403(b) pre-approved plan providers to apply for a Cycle 2 Opinion Letter ends on May 1, 2023. The period for employer adoption of Cycle 2 403(b) plans will be announced at a later date.
Operational Compliance List
The IRS has updated the Operational Compliance List to reflect recent guidance and legislation. This list serves as a valuable resource for plan sponsors and practitioners, helping them identify any changes in plan qualification requirements that may affect their plans.
Compliance Programs and Priorities
The Tax Exempt and Government Entities have issued their 2023 Program Letter, outlining the compliance programs and priorities for the year. You can refer to the IRS’ Compliance Program and Priorities webpage for the latest initiatives and the approach used for compliance. These initiatives may involve an examination, a compliance check, or an educational contact.
Please reach out to your Boutwell Fay attorney for any assistance or email us with any questions at attorneys@boutwellfay.com.