Qualified Plans — IRS Determination Letter Procedures focuses on the procedures for applying to the IRS for a letter determining that a pension plan is qualified under §401(a) of the Internal Revenue Code. Factors considered by the IRS are discussed and the necessary forms for most types of qualified pension plans are reviewed. Procedures for obtaining other types of IRS rulings and rulings from other federal agencies in relation to qualified pension plans are addressed.  

Written by Kathy Davidson Ireland, Esq., this Portfolio details the process by which the IRS issues a favorable determination letter with respect to a pension or profit-sharing plan and potential issues that may arise in the process.

It also addresses selected specialized situations and highlights potential qualification issues. The Portfolio assumes the reader is generally familiar with the Employee Retirement Income Security Act of 1974 (ERISA), as amended, and the IRS's qualification rules for defined contribution and defined benefit pension plans.

Specific subjects covered include Form 5300, Application for Determination for Employee Benefit Plan, and Schedule Q (elective determination requests); Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans; Form 5309, Application for Determination of Employee Stock Ownership Plan;  remedial amendment periods; U.S. Tax Court review of an adverse determination;  notice to interested parties; and more. 

Worksheets contain sample practitioner aids and certain applicable IRS. 

Qualified Plans — IRS Determination Letter Procedures allows you to benefit from:

• Hundreds of hours of original research on specific tax planning topics from leading practitioners in this area
• Invaluable practice documents including tables, charts and lists
• Plain-English guidance from world-class experts
• Real-world and in-depth analysis that lets you explore various options
• Time-saving access to relevant sections of tax laws, regulations, court cases, IRS documents and more
• Alternative approaches to both common and unique tax scenarios

This Portfolio is part of the U.S. Income Portfolios Library, a comprehensive series that includes more than 200 Portfolios, which covers every federal tax topic with expert, in-depth analysis, and offer commentary on a wide range of federal taxation topics, including Compensation Planning, Deductions and Credits, Partnerships and Corporations, Special Pass-Through Entities, Corporate Reorganizations, Real Estate, Procedure and Administration, and more.

Detailed Analysis

I. Introduction

Introductory Material

A. Overview

1. Plan Selection

a. Defined Benefit Plans

b. Defined Contribution Plans

c. Permitted Disparity (Social Security Integration)

2. Plan Document

3. Plan Adoption

4. Plan Qualification

a. Benefits of Tax-Exempt Status

b. Advantages of Determination Letters

c. Employee Plans Compliance Resolution System Issues

d. Plan Termination

B. Scope and Purpose of Portfolio

II. Determination Letter Applications

A. Scope

B. What to File

1. Form 5300, Application for Determination for Employee Benefit Plan

2. Schedule Q, (Form 5300), Elective Determination Requests

3. Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans

4. Form 5309, Application for Determination of Employee Stock Ownership Plan

5. Form 5310, Application for Determination for Terminating Plan

6. Supporting Documents

a. User Fees

b. Power of Attorney

c. Other Attachments

d. Cover Letter

7. Compiling the Package

C. Where to File

1. Determination Letter Applications

2. Related Procedures

a. IRS EP Technical

b. Tax Court Review

(1) Petitioner

(2) Notice

(3) Exhaustion of Administrative Remedies

(4) Plan in Effect

(5) Time for Action

D. When to File

1. General Remedial Amendment Period

a. Cyclical Remedial Amendment Periods

(1) In General

(2) General Remedial Amendment Period Extension

(3) Interim Amendments

(4) Pre-Approved Plans

b. EGTRRA Remedial Amendment Period

2. Extensions of the Remedial Amendment Period

3. Relief After the Remedial Amendment Period

E. Notice to Interested Parties

1. Who Are Interested Parties?

2. Type of Notice

III. Other Procedures for Obtaining Written Guidance

A. Other IRS Rulings and Written Guidance

1. Closing Agreements

2. Information Letters

3. Private Rulings

4. Rulings Areas

5. Rulings - Procedures

B. Department of Labor Rulings

1. Advisory Opinions

2. Information Letters

3. Prohibited Transaction Exemptions

C. Jurisdiction of Other Courts

D. Freedom of Information Act

Working Papers

Table of Worksheets

Worksheet 1 Cover Letter to Application for Determination Letter

Worksheet 2 Notice to Interested Parties of Plan's Application for a Determination Letter from the IRS

Worksheet 3 Selected IRS Alert Guidelines - Vesting and Minimum Participation

Worksheet 4 Selected IRS Alert Guidelines - Defined Benefit Plans: Coverage and Nondiscrimination; Permitted Disparity

Worksheet 5 Selected IRS Alert Guidelines - Distributions and Contributions

Worksheet 6 Plan Amendment Deadlines for Qualified Plans

Worksheet 7 Cumulative List of Changes in Pension Plan Qualification Requirements

Worksheet 8 Schedule of User Fees

Bibliography

OFFICIAL

Statutes:

Internal Revenue Code:

Treasury Rulings:

Cases:

UNOFFICIAL

Texts and Treatises:

Periodicals:

1983

1989

1992

1994

1997

2001

2002

2003

2006