More retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS updates posting on preapproved and individually designed plan program FAQs (including Form 8905)
The Internal Revenue Service (IRS) has provided frequently asked questions (FAQs) related to the use of Form 8905, Certification of Intent to Adopt a Pre-approved Plan.
An employer’s plan is treated as a preapproved plan and is eligible for the six-year remedial amendment cycle if the employer (maintaining an individually designed plan), along with a master and prototype (M&P) sponsor or a volume submitter (VS) practitioner who maintains the preapproved plan, execute Form 8905 as an “intended adopter” before the end of the employer’s five-year remedial amendment cycle (Section 17.04 of Revenue Procedure 2007-44). Thus, Form 8905 is used to shift from the five-year remedial amendment cycle used for individually designed plans to the six-year remedial amendment cycle applicable to preapproved plans.
To visit the FAQs web page, click here.
IRS issues newsletter indicating prior Forms 5300 and 5310 are usable
The IRS has issued a new edition of Employee Plan News indicating the prior versions of the Forms 5300 and 5310 are fine to use through June 30, 2014. It also discusses new user fees that apply to certain applications starting February 1, 2014—including the new fee even though the user fee form hasn’t been updated yet to reflect it.
To read the entire newsletter, click here.