SECTION 9. VOLUME

SUBMITTER PLANS

Scope .01 This section contains procedures for requesting advisory letters and determination letters for volume submitter plans.

Purpose of volume .02 The volume submitter program enables the Service to expedite the issuance of submitter program determination letters in response to applications for approval of individually designed plans.

Description of volume .03 Under the volume submitter program, a practitioner who qualifies may request the submitter program Service to issue an advisory letter regarding a volume submitter specimen plan. A specimen plan is a sample plan of a practitioner (rather than the actual plan of an employer) that contains provisions that are identical or substantially similar to the provisions in plans that such practitioner’s clients have adopted or are expected to adopt. Once the Service has approved the specimen plan, the practitioner will be able to file determination letter requests on behalf of employers adopting substantially similar plans.

Definition of volume .04 A volume submitter plan is a profit-sharing plan (without a § 401(k) arrangement), submitter plan a profit-sharing plan (with a § 401(k) arrangement), a money purchase pension plan, or a defined benefit plan that is submitted under the procedures described in this section 9 for filing requests for volume submitter advisory letters (with respect to the specimen plan) and requests for determination letters (with respect to an employer’s adoption of a plan that is substantially similar to an approved specimen plan). The Service will not accept volume submitter requests with respect to ESOPs or other stock bonus plans.

Other requirements .05 Incorporation by reference in a volume submitter plan is subject to the limits described in section 5.02(16) and (17) of Rev. Proc. 89–13. In addition, because the volume submitter program is intended to speed the processing of determination letter requests for individually designed plans, volume submitter plans may not use an adoption agreement format. Practitioners who wish to use an adoption agreement format may request plan approval under the regional prototype plan program described in Rev. Proc. 89-13.

User fees .06 Rev. Proc. 98–8 provides reduced user fees for requests under the volume submitter program if certain requirements are satisfied. For adopting employers to be entitled to file a request with the lower fees, the volume submitter practitioner must certify at the time of filing the specimen plan that at least 30 employers are expected to adopt plans that are substantially similar in form to the specimen plan. Also, the volume submitter practitioner must be a representative of the employer when the employer’s determination letter application is filed. Although the volume submitter is not required to submit a list of adopting employers, the Service reserves the right to request such a list.

Advisory letter for specimen plan .07 With respect to advisory letters for volume submitter specimen plans:

(1) A request for approval of a volume submitter specimen plan must be sent to the Volume Submitter Coordinator in the Ohio Key District Office at the following address:

1998–1 I.R.B. 199 January 5, 1998

Internal Revenue Service P.O. Box 2508 Cincinnati, OH 45201 Attn: VSC Coordinator Room 4106

(2) The request for approval must include the following:

(a) A copy of the specimen plan and any related specimen trust instrument;

(b) A cover letter requesting approval that includes the certification described in section 9.05 above and indicates the type of plan for which approval is being requested;

(c) The required user fee submitted with Form 8717, User Fee for Employee Plan Determination Letter Request; and

(d) An index/table of contents listing the location of all variable sections.

(3) A practitioner who has received approval of a volume submitter specimen plan from a key district office other than the Ohio Key District Office need not request approval from the Ohio Key District Office merely because of the Service’s consolidation of its determination functions. However, all subsequent requests for advisory letters with respect to the specimen plan are to be sent to the address in this section 9.07.

Determination letter for .08 With respect to determination letters for volume submitter plans: adoption of volume submitter plan

(1) A request for a determination letter for an employer’s adoption of an approved volume submitter plan must be sent to the address provided in section 6.17.

(2) The request for a determination letter, including a request regarding a single-employer collectively bargained plan that benefits only collectively bargained employees described in § 1.410(b)-6(d)(2) and that automatically satisfies the requirements of § 1.410(b)-2(b)(7), must include the following:

(a) Form 5307, Application for Determination for Adopters of Master or Prototype, Regional Prototype, or Volume Submitter Plan;

(b) Schedule Q, (Form 5300) Nondiscrimination Requirements;

(c) Written authorization allowing the volume submitter practitioner to act as a representative of the employer with respect to the request for a determination letter;

(d) A copy of the advisory letter for the practitioner’s volume submitter specimen plan;

(e) A copy of the plan and trust instrument and a written representation made by the volume submitter practitioner which states whether the plan and trust instrument are word-forword identical to the approved specimen plan and, if they are not, explains how the plan and trust instrument differ from the approved specimen plan, describing the location, nature and effect of each deviation from the language of the approved specimen plan;

(f) A copy of the plan’s latest favorable determination letter, if applicable; and

(g) Any other information or material that may be required by the key district office.

(3) Deviations from the language of the approved specimen plan will be evaluated based on the complexities of the changes. If the changes are determined not to be compatible

January 5, 1998 200 1998–1 I.R.B.

with the volume submitter program, the Service may require the adopter to file Form 5300 and pay the higher user fee.