The Internal Revenue Service will suspend one type of determination letter program while it prepares to receive a wave of defined contribution plan restatements.

The IRS will be closing the Form 5307 determination letter program for adopters of master and prototype plans and for volume submitter plans for about 2 years starting Dec. 18, IRS officials write in IRS Announcement 2007-90.

IRS is suspending the Form 5307 determination letter program for master and prototype plans and volume submitter plans, which helps employers make minor changes to 401(k) plans and other defined contribution plans, because the Economic Growth and Tax Relief Reconciliation Act of 2001 will require employers to restate all pre-approved defined contribution plans during a 2-year period that will start in early 2008.

“The temporary hiatus in accepting Form 5307 applications will allow the service to prepare to receive the EGTRRA applications,” officials say.

When the IRS is close to finishing its review of preapproved defined contribution plans, then it will publish an announcement providing the date by which adopting employers must adopt the newly approved plans, officials say.

That date also will be the deadline for adopting employers to file Form 5307 determination letter applications for EGTRRA-restated, pre-approved defined contribution plans.

The change does not affect employers that are seeking determination letters because they have discovered and are trying to correct problems with their plans, officials say.

A copy of the IRS determination letter announcement is available