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Remedial Amendment Cycles
Rev. 05/14/08, 11/17/05, E-mail Alert 2005-23

Six-Year Cycle for Pre-Approved Plans

(Master and Prototype Plans and Volume Submitter Plans)
Year
Defined Contribution (DC) Plan
Year
Defined Benefit (DB) Plan

One 2005

 All pre-approved DC plans must be updated and submitted to the IRS by January 31, 2006. List of plans submitted by 01/31/06.
--
--
Two 2006
 IRS processes the applications for DC plans.
--
--
Three 2007
 IRS process the applications for DC plans.
One 2007
All pre-approved DB plans must be rewritten and submitted to IRS by 01/31/08.
Four 2008

IRS issues opinion letters and announces the deadline for employer to restate. Employers restate DC plans.

415 Amendment.
Two 2008
 IRS processes the applications for DB plans.
Five 2009
 Employers restatement continues for DC plans. PPA Amendment due.
Three 2009
 IRS processes the applications for DB plans and announces restatement deadline.
Six 2010
Employer's complete DC restatement. (Exact date to complete the amendment process to be announced.)
Four 2010
 Employers restate DB plans.

New Cycle

Year One 2011

Remedial Amendment Cycle ends 01/31/11.

Next round submitted from 02/01/011 to 10/31/11, 01/31/12.
Five 2011

Employers must complete restatement of DB plans by the IRS announced deadline.

Two 2012
 IRS processes the applications for DC plans.
Six 2012

Remedial Amendment Deadline for all DB Pre-approved plans is 01/31/13.

Next round to be submitted from 02/01/03 to 10/31/13, 01/31/14.

A new single date deadline, applicable to all adopting employers of all M&P and volume submitter plans, will be announced by the IRS – for DC plans -- in early 2008 (and replaces the old 12th-month rule). Good faith interim amendments needed based on on-going IRS guidance or new laws, for example, the Pension Protection Act amendment.

Employers who are not currently using a pre-approved plan but who wish to adopt one before the end of their plan’s RAP may do so by certifying their intent to so adopt such a plan on a Form 8905. For example, if an individually designed plan has a RAP ending January 31, 2009, the employer may certify its intent to adopt a pre-approved plan by that date. The effect of the certification is that the employer will have until the end of the pre-approved plan’s RAP (sometime in 2010, exact date not yet announced) to adopt that plan

FIVE-YEAR CYCLE FOR INDIVIDUALLY DESIGNED PLANS
Cycle
Last Digit of EIN Number,
and Other Plans
Year to be Restated,
By Deadline Date
A
1 or 6

2006,
By January 31, 2007
B
2 or 7,
and Multiple Employer Employer Plans

2007,
By January 31, 2008
C
3 or 8
and Governmental Plans

2008,
By January 31, 2009
D
4 or 9,
and Multiemployer Plans

2009,
By January 31, 2010
E
5 or 0
2010,
By January 31, 2011

The cycle provides that the plan with employer identification numbers (EINs) ending 1 or 6 must be restated in the first year (2006) and restated again 2011. EINS ending in 2 or 7 would be restated in the second year (2007), and again in 2012, and so forth. Note that one of the two ending numbers will always coincinde with the last digit of the calendar year. Also, each year's deadline is actually January 31 of the following year. Thus, plans that must be submitted in 2006 actually have a deadline fo January 31, 2007.

Although plans will not need to be amended in interim years, depending on the circumstances and to assure interim compliance, the IRS intends to issue model amendments imilar to htose issued for EGTRRA and the 401(a)(9) Required Minimum Distribution that may be adopted by individually designed plans.

Form 8905 was created for individually designed plans to certify their intent to change to a prototype.

Rev. Proc. 2007-44

IRS Staggered RAP Webpage

 

 

To learn more, call 973-492-1880 or e-mail info@mhco.com.

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