Close
Close

IRS issues guidance regarding qualified retirement plan documents

RFP
IRS issues guidance regarding qualified retirement plan documentsMany employers that sponsor a retirement plan, such as a Section 401(k) plan, rely on a bank, broker, insurance company or similar party to provide them with the legal document that sets forth the terms of the plan, known as the plan document. These parties are referred to as “providers” in the document.

In Rev. Proc. 2017-41, the IRS sets forth detailed procedures on how providers may obtain an opinion letter from the IRS on the plan documents they provide to employers. An opinion letter is viewed as very valuable because it states that the plan complies in written form with all of the necessary requirements for the plan under the Internal Revenue Code. In addition to addressing the procedures for obtaining opinion letters, the revenue procedure addresses certain other related matters, such as the degree to which employers may rely on an opinion letter and procedures and standards regarding amendments to the plans.

In addition, in Notice 2017-37, the IRS issued the 2017 Cumulative List of Changes in Plan Qualification Requirements for Pre-Approved Defined Contribution Plans. This list identifies recent changes in requirements for plans that will be considered by the IRS in its review of plan documents for the purpose of issuing opinion letters.

Contact:
Eddie Adkins
Partner, Washington National Tax Office
T +1 202 521 1565

Jeffrey Martin
Senior Manager, Washington National Tax Office
T +1 202 521 1526

Tax professional standards statement

This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.