IRS Releases 2013 Cumulative List of Changes in Plan Qualification Requirements

The Internal Revenue Service (IRS) recently issued Notice 2013-84, which provides the 2013 Cumulative List of Changes in Plan Qualification Requirements. The Cumulative List sets out the changes to employee benefit plan requirements that the IRS will review when it determines if a plan has been properly updated. The 2013 Cumulative List applies to plans that are submitted for a determination letter during Cycle D (from February 1, 2014 to January 31, 2015).

Practical Law Employee Benefits & Executive Compensation

IRS Notice 2013-84

The IRS recently issued Notice 2013-84, which provides the 2013 Cumulative List of Changes in Plan Qualification Requirements (Cumulative List) (IRS Notice 2013-84, 2013 WL 6500066 (Dec. 12, 2013)). The Cumulative List contains a compilation of changes to employee benefit plan requirements that are embodied in statutes and IRS guidance. The IRS publishes a Cumulative List annually according to Section 4 of IRS Revenue Procedure 2007-44. The 2013 Cumulative List contains the plan qualification requirements from the 2009, 2010, 2011 and 2012 Cumulative Lists, as well as new requirements made in 2013 (the changes that were not in previous Cumulative Lists are labeled as "New" in the 2013 Cumulative List).

Employee benefit plan sponsors, administrators and attorneys should rely on the Cumulative List when they submit determination letter applications to the IRS during Cycle D, the submission period that begins February 1, 2014 and ends January 31, 2015 (see Practice Note, Applying for an IRS Determination Letter (www.practicallaw.com/9-501-4610)).

The changes contained in the Cumulative List are specifically identified for review by the IRS regarding whether a plan filing in Cycle D has been properly updated. The IRS will not consider in its review of determination letter applications:

  • The 2010 final hybrid plan regulations (other than provisions related to IRC Section 411(a)(13)(A) and provisions of the regulations effective for plan years beginning on or after January 1, 2011), unless the plan has already been amended to satisfy those regulations.

  • Qualification requirements first effective in 2015 or later.

  • Statutory provisions that are first effective in 2014 that are not identified in the Notice.

  • Guidance issued and statutes enacted after October 1, 2013, except:

The Cumulative List applies mainly to:

  • Single employer individually designed defined contribution plans that are in Cycle D.

  • Single employer individually designed defined benefit plans that are in Cycle D.

  • Multiemployer plans described in IRC Section 414(f).

The changes in the Cumulative List do not extend the deadline by which a plan must be amended to comply with statutory, regulatory or guidance changes. For a plan to be qualified, it must comply with all qualification requirements, not just those in the Cumulative List.

The 2013 Cumulative List includes relevant legal changes as set out in:

  • The Pension Protection Act of 2006 (www.practicallaw.com/6-503-2333).

  • The U.S. Troop Readiness, Veterans’ Care, Katrina Recovery and Iraq Accountability Appropriations Act.

  • The Heroes Earnings Assistance and Relief Tax Act of 2008.

  • The Worker, Retiree, and Employer Recovery Act of 2008.

  • The Small Business Jobs Act of 2010.

  • The Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (PPA 2010).

  • The Moving Ahead for Progress in the 21st Century (MAP-21) Act.

  • The American Taxpayer Relief Act of 2012.

The 2013 Cumulative List provides changes in 27 different sections of the Internal Revenue Code (IRC). The new additions to the Cumulative List include the recent changes required by:

 

Practical Implications

Employee benefit plan sponsors, administrators and attorneys should rely on the 2013 Cumulative List when they submit determination letter applications during Cycle D, the submission period that begins February 1, 2014 and ends January 31, 2015 (see Practice Note, Applying for an IRS Determination Letter: Timeframe for Filing for an IRS Determination Letter). However, the Cumulative List does not extend the deadline by which a plan must be amended to comply with statutory, regulatory or guidance changes. Except as provided in Notice 2013-84, guidance issued or statutes enacted after October 1, 2013 will not be reviewed by the IRS in determination letter applications. For a collection of resources relating to filing IRS determination letters, see Retirement Plan Determination Letters Toolkit (www.practicallaw.com/7-501-3923).

 
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