SECTION 2. BACKGROUND

.01 Rev. Proc. 98–14 provides that determination letter applications that are filed on or after April 27, 1998, will be reviewed taking into account GATT, TRA ’97, and those provisions of SBJPA that are effective before 1999 (“new law”). The only exception is for determination letter applications for adopters of master or prototype (M&P) and regional prototype plans (other than terminating plans) that have not yet been amended for the new law; these will continue to be reviewed and approved on the basis of “pre-GATT” law. In addition, under Rev. Proc. 98–14, applications for opinion letters for M&P plans, notification letters for regional prototype plans, and advisory letters for volume submitter specimen plans that are filed on or after April 27, 1998, will be reviewed on the basis of the new law.

.02 Rev. Proc. 97–41, 1997–33 I.R.B.

51, as modified by Rev. Proc. 98–14, provides that the remedial amendment period under § 401(b) for amending plans for the new law generally does not expire until the end of the first plan year beginning on or after January 1, 1999. Rev. Proc. 97– 41 also provides that this remedial amendment period applies with respect to all disqualifying provisions of new plans adopted or effective after December 7, 1994, and all disqualifying provisions of existing plans arising from a plan amendment adopted after December 7, 1994. Nevertheless, employers and practitioners have asked that plan sponsors be allowed to request determination letters without being required to amend their plans for the new law at this time.