Sponsors of retirement plans that use a prototype document must adopt EGTRRA amendments by April 30, 2010. These plans have been able to comply in good faith with compliance of EGTRRA up to this point. A prototype document is a plan design pursuant to which a plan sponsor completes an adoption agreement that is supported by a plan document.
Generally, prototype plans do not have to seek an individual determination letter; however, any plan sponsor that wishes to obtain an individual determination letter must do so, also by April 30, 2010. An individual determination letter provides some additional protection, and may well be advisable if the prototype document has been modified in any way.
IRS Informational Resources:
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As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.