SECTION 3. ON WHAT

ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER THIS PROCEDURE?

Types of requests .01 Determination letters may be requested on completed and proposed transactions as set forth in the table below:

1998–1 I.R.B. 189 January 5, 1998

REV. PROC. TYPE OF REQUEST FORMS SECTION

1. Initial Qualification, etc.

a. Individually Designed Plans (other than collectively 5300, 7 bargained plans) Schedule Q

b. ESOPs 5300, 5309, 7 Schedule Q

c. Collectively Bargained Plans 5303, 7 Schedule Q,

d. Adoptions of Master & Prototype or Regional Prototype Plans 5307, 8 (including a collectively bargained plan if no noncollectively Schedule Q bargained employees are in the plan

e. Adoptions of Volume Submitter Plans (including a collectively 5307, 9 bargained plan if no noncollectively bargained employees Schedule Q are in the plan)

f. Multiple Employer Plans 5300, 10 Schedule Q

g. Group Trusts Cover letter 13

h. Section 420 determination letters Cover letter, 16 Checklist, Appendix

2. Minor Amendments 6406 11

3. Termination

a. In general 5310, 6088, 12 Schedule Q

b. Multiemployer plan covered by PBGC insurance 5303, 6088, 12 Schedule Q

Note: Form 5310-A, Notice of Plan Merger, Consolidation, Spinoff or Transfer of Plan Assets or Liabilities—Notice of

Qualified Separate Lines of Business, generally must be filed not less than 30 days before the merger, consolidation or transfer of assets and liabilities. The filing of Form 5310-A will not result in the issuance of a determination letter.

4. Special Procedures

a. Affiliated Service Group Status (§ 414(m)), 5300, 14 Leased Employees (§ 414(n)) Schedule Q

b. Minimum Funding Waiver 5300, 15 Schedule Q

Areas in which .02 Determination letters issued in accordance with this revenue procedure do not determination include determinations on the following issues within the jurisdiction of the Assistant letters will not Commissioner (Employee Plans and Exempt Organizations): be issued

(1) Issues involving §§ 72, 79, 105, 125, 127, 129, 402, 403 (other than 403(a)), 404, 409(l), 409(m), 412, 457, 511 through 515, and 4975 (other than 4975(e)(7)), unless these determination letters are authorized under section 7 of Rev. Proc. 98-4, page 113, this Bulletin.

January 5, 1998 190 1998–1 I.R.B.

(2) Plans or plan amendments for which automatic approval is granted pursuant to section 8.05 below.

(3) Plan amendments described below (these amendments will, to the extent provided, be deemed not to alter the qualified status of a plan under § 401(a)).

(a) An amendment solely to permit a trust forming part of a plan to participate in a pooled fund arrangement described in Rev. Rul. 81–100, 1981–1 C.B. 326;

(b) An amendment that merely adjusts the maximum limitations under § 415 to reflect annual cost-of-living increases, other than an amendment that adds an automatic cost-ofliving adjustment provision to the plan; and

(c) An amendment solely to include language pursuant to § 403(c)(2) of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) concerning the reversion of employer contributions made as a result of mistake of fact.

(4) This section applies to determination letter requests with respect to plans that combine an ESOP (as defined in § 4975(e)(7) of the Code) with retiree medical benefit features described in § 401(h) (HSOPs).

(a) In general, determination letters will not be issued with respect to plans that combine an ESOP with an HSOP with respect to:

(i) whether the requirements of § 4975(e)(7) are satisfied;

(ii) whether the requirements of § 401(h) are satisfied; or

(iii) whether the combination of an ESOP with an HSOP in a plan adversely affects its qualification under § 401(a).

(b) A plan is considered to combine an ESOP with an HSOP if it contains ESOP provisions and § 401(h) provisions.

(c) However, an arrangement will not be considered covered by section 3.02(4) of this revenue procedure if, under the provisions of the plan, the following conditions are satisfied:

(i) No individual accounts are maintained in the § 401(h) account (except as required by § 401(h)(6));

(ii) No employer securities are held in the § 401(h) account;

(iii) The § 401(h) account does not contain the proceeds (directly or otherwise) of an exempt loan as defined in § 54.4975-7(b)(1)(iii) of the Pension Excise Tax Regulations; and

(iv) The amount of actual contributions to provide § 401(h) benefits (when added to actual contributions for life insurance protection under the plan) does not exceed 25 percent of the sum of: ( 1 ) the amount of cash contributions actually allocated to participants’ accounts in the plan and ( 2 ) the amount of cash contributions used to repay principal with respect to the exempt loan, both determined on an aggregate basis since the inception of the § 401(h) arrangement.

GATT, SBJPA, and TRA ’97 .03 Until further notice is given, determination letters, other than those issued for terminating plans, will not include consideration by the Service of any amendments to the qualification requirements made by TRA ‘97, or by GATT or SBJPA, except for § 1432 and § 1454 of SBJPA, which amended § 401(a)(26) and § 414(n) of the Code,

1998–1 I.R.B. 191 January 5, 1998

respectively. Until such notice is given, plans, other than terminating plans, that include provisions that reflect the GATT, SBJPA, or TRA ’97 amendments to the qualification requirements will not be subject to adverse determination letters by reason of the inclusion of such provisions. However, favorable letters issued for plans, other than terminating plans, may not be relied upon with respect to whether such provisions satisfy the qualification requirements as amended by GATT, SBJPA, or TRA ’97. Also see Rev. Proc. 97–41, 1997–33 I.R.B. 51, regarding the remedial amendment period for GATT and SBJPA plan amendments.