Pension Protection Act Blog

Today, the IRS issued Announcement 2007-90. It states that on December 18, 2007, the IRS will temporarily stop accepting applications for determination letters for defined contribution plans that are filed on Form 5307. The Service states that this temporary hiatus is to allow them to prepare to receive EGTRRA applications.

The IRS will process any determination letter applications for defined contribution plans using Form 5307 filed before December 18, 2007, provided the plan has a favorable GUST opinion or advisory letter.

In early 2008, the IRS will issue the EGTRRA opinion/approval letters for defined contribution prototype and volume submitter plans and will open the approximately two-year period for adopting EGTRRA-restated pre-approved defined contribution plans. The IRS states that it will return to the applicant any determination letter application for a defined contribution plan filed on Form 5307 on or after December 18, 2007, and before the opening of the approximately two-year period for adopting EGTRRA-restated pre-approved defined contribution plans.

The moratorium on determination letter applications filed on Form 5307 after December 18, 2007, applies only to defined contribution plans.

Not affected by the temporary moratorium are defined benefit plans. The IRS will continue to accept applications for determination letter applications for defined benefit plans filed on Form 5307. The moratorium on determination letter applications also does not affect the ability to apply for a determination letter for plan amendments related to a voluntary correction program (VCP) submission or as required under the correction on audit program (Audit CAP).

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