The Internal Revenue Service is giving sponsors of some governmental retirement plans more time to adopt remedial amendments.
IRS officials discuss the change in IRS Revenue Procedure 2009-36.
The IRS has set up a system of 5-year “cyclical remedial amendment periods” for individual designed governmental plans with a need to address qualification problems, and it has set up a 6-year remedial periods for “pre-approved” plan templates.
Governmental plans can get 91-day extensions of a remedial amendment period, but, in some cases, laws and procedures may keep the governing body that controls a governmental plan from considering the required amendments until the 91-day extension has expired, officials write in the revenue procedure.