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September 20, 2007 at 02:33 PM
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.
