If your plan uses a volume submitter document that has been modified, but not so extensively as to be considered an individually designed plan document, you may apply for an individual determi- nation letter for the plan using Form 5307.The Form 5307 can be submitted at any time from May 1, 2014 through April 30, 2016.
Determination Letter Applications for Pre-Approved Plans In recent years, the IRS limited the categories of pre- approved plan documents that can be submitted for an individual determination letter on Form 5307.If your plan uses a standardized or nonstandardized prototype document, the plan may not apply for an individual deter- mination letter but instead can rely on the prototype docu- ment’s IRS opinion letter.PPA Restatement Changes Since the IRS approved the EGTRRA restatements in 2007, several pieces of legislation and regulations issued by the IRS have required amendments to pre-approved plan documents.These amendments, referred to as “inter- im amendments”, were previously required to be adopted at various deadlines and addressed the following legisla- tion and regulations: The new PPA restatements incorporate those amend- ments into the terms of the pre-approved plan documents.At that time, the IRS established a 6-year cycle for pre-approved plan documents such as prototype and volume submitter doc- uments.
The initial 6-year cycle ended on April 30, 2010, the deadline for plan sponsors using a prototype or vol- ume submitter document to adopt an EGTRRA restate- ment. It be- gan with the provider’s submission of prototype and volume submitter documents to the IRS for new opinion or advisory letters between February 1, 2011 and April 2, 2012.
In order to maintain a qualified plan, the IRS requires that you have a written plan document.
The IRS also requires that the written plan document be amended and restated periodically.
Restatement from 1991-1992 and is known as the TRA 86 Restatement Failure to timely restate and amend your plan document can result in plan disqualification and taxation of plan assets, but more likely will result in IRS imposed penalties.
The best way to avoid problems is to retain a third party administrator, such as ARS, that takes your plan seriously and provides you all the necessary services to maintain your plan’s qualified status.
Please note that volume submitter and individually designed are two other types of plan documents.