The IRS today released an advance version of Notice 2018-24 concerning possible expansion of the scope of the determination letter program for individually designed plans during the 2019 calendar year (i.e., beyond the determination letters provided for initial qualification and qualification upon plan termination).
Notice 2018-24 [PDF 14 KB] requests comments on the potential expansion of the scope of the determination letter program for individually designed plans during the 2019 calendar year. Comments are due by June 4, 2018.
The IRS notice states that the IRS and Treasury Department, in reviewing the comments that are received, will consider the factors regarding the scope of the determination letter program as set forth in Rev. Proc. 2016-37.
Today’s notice states that the IRS and Treasury will issue guidance if any additional types of plans for which plan sponsors may request determination letters during the 2019 calendar year are identified.
Rev. Proc. 2016-37 modified the IRS determination letter program for qualified plans to eliminate—as of January 1, 2017—the five-year remedial amendment cycle system for individually designed plans. Under the revenue procedure, effective January 1, 2017, a sponsor of an individually designed plan was permitted to submit a determination letter application only for initial plan qualification, for qualification upon plan termination, and in certain other circumstances. The IRS described clarifying changes to the six-year remedial amendment cycle system for pre-approved qualified plans and modifies the six-year remedial amendment cycle system to reflect changes that have been made to the determination letter program for individually designed plans. Read TaxNewsFlash
Rev. Proc. 2016-37 also stated that the U.S. Treasury Department and the IRS will consider each year whether to accept determination letter applications for individually designed plans in specified circumstances other than for initial qualification and qualification upon plan termination.
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.