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IRS extends deadline for opinion letter applications for pre-approved defined contribution plans

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Tax Hot Topics newsletterThe IRS issued Rev. Proc. 2018-42 to extend until Dec. 31, 2018, the deadline for pre-approved plan providers to submit on-cycle applications for opinion letters for the third six-year remedial amendment cycle. The submission period was previously scheduled to expire on Oct. 1, 2018. The revenue procedure is effective as of Aug. 15, 2018.

Under Rev. Proc. 2016-37, every pre-approved retirement plan has a regular, six-year remedial amendment cycle, with the third six-year remedial amendment cycle for pre-approved defined contribution plans beginning on Feb. 1, 2017, and ending on Jan. 31, 2023. The 12-month on-cycle submission period for pre-approved defined contribution plans was scheduled to begin on Aug. 1, 2017, and end on July 31, 2018.

Rev. Proc. 2017-41 modified the pre-approved letter program, in relevant part, by setting forth procedures for obtaining opinion letters for qualified pre-approved plans submitted with respect to the third (and subsequent) six-year remedial amendment cycles. Specifically, Rev. Proc. 2017-41 modified the on-cycle submission period for pre-approved defined contribution plan providers to submit opinion letter applications for the third six-year remedial amendment cycle to begin on Oct. 2, 2017, and end on Oct. 1, 2018.

After the pre-approved plan providers obtain updated opinion letters, employers who have adopted those plans will have a designated period within which they must adopt the updated plan in order to retain reliance on the providers’ opinion letter.

Contact
Jeff Martin
Partner
Washington National Tax Office
T +1 202 521 1526

Keith Mong
Managing Director
Washington National Tax Office
T +1 202 521 1554

James Sanchez
Senior Associate
Washington National Tax Office
T +1 202 861 4107

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