Changes to IRS Determination Letter Program for Retirement Plans (article)
The IRS recently announced changes to its Determination Letter Program. A determination letter provides attestation from the IRS that a particular qualified retirement plan is compliant. This guidance (Announcement 2015-19) provides that in an effort to streamline the process for approval, beginning January 1, 2017, the IRS will only issue determination letters upon plan commencement and plan termination. In addition, the IRS will eliminate the staggered 5-year remedial amendment cycles for individually designed plans. The IRS provides an overview of the changes to the determination letter process for applications submitted on or after February 1, 2015 on its website (see Changes to the EP Determination Process Begin in 2015).
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