IRS GUST SUBMISSION EXTENSION PROVIDES REDUCED COMPLIANCE $250 FEE FOR PLANS THAT SUBMIT BY JANUARY 31, 2004
Rev. Proc. 2003-72 Aug. 28, 2003
Rev. 09/11/03, E-mail Alert 2003-17

NEWSFLASH: The IRS issued Rev. Proc. 2003-72 regarding the GUST deadline today. The GUST deadline remains September 30, 2003. However, there is an extension for the submission of a determination letter application for certain plans until January 31, 2004. Streamlined compliance procedures have been created for the situations below:

1. Plans amended within the GUST Remedial Amendment Period (RAP).
   A plan satisfies the timely amendment requirements if amended to comply with GUST within the plan's GUST remedial amendment period. This is considered to have occurred if "bona fide" amendments are adopted by the end of the GUST RAP that are made contingent on the receipt of a favorable determination letter provided such amendments become effective upon receipt of the favorable determination letter without further action by the plan sponsor. "The fact that, in connection with the determination letter process, the employer adopts or submits in proposed form, or the Service requests, such changes or such additional amendments will not mean that the amendments the employer adopts by the end of the GUST RAP did not represent a bona fide effort to comply with the requirements of GUST."
   
   Thus, under this option, an eligible plan may be amended for GUST by the September 30, 2003 deadline and submit a determination letter application by January 31, 2004.
   

Eligible plans not restated for GUST by September 30, 2003.

2. For master, prototype and volume submitter plans that are being submitted to the IRS, but that have not been restated for GUST by September 30, 2003, the submission may be done up until January 31, 2004. The submission must be accompanied by a check for $250 compliance fee in addition to the submission fee. The application should have the words "Rev. Proc. 2003-72" written on the top of the determination letter application. The filing of a determination letter application by January 31, 2004 for an eligible plan will extend the plan's GUST remedial amendment period through the 91st day following the issuance of the favorable determination letter.
   
   
3. Plans that are not required to submit for a determination letter, but that miss the September 30, 2003 deadline, may also submit a determination letter application with a check for $250 for the compliance fee by January 31, 2004.
   

For more details regarding 2 and 3 above see section 6 of Rev. Proc. 2003-72

NOTE: Plans that submit under any of the above options are considered to have a GUST extension until 91 days after the favorable determination letter is received.

4. Extension of time for plan to be amended for 401(a)(9).
   The time by which a defined contribution plan must be amended to comply with the final and temporary regulations under Section 401(a)(9) is extended to the later of the last day of the first plan year beginning on or after January 1, 2003, or the end of the GUST remedial amendment period. This effects pre-approved plans submitting for determination letters by January 31, 2004. The deadline for the adoption of the Section 401(a)(9) amendments would correspond to the deadline for the GUST amendment which would be 91 days after the issuance of the favorable determination letter.
   
   

IRS Issues EP Plan News Special Edition To Announce GUST Submission Extension 08-29-03