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:

January 4, 1999 192 1999–1 I.R.B.

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 plans if no noncollectively Schedule Q bargained employees are in the plan) e. Adoptions of Volume Submitter Plans (including a collectively bargained 5307, 9 plan if no noncollectively bargained employees are in the plan) Schedule Q f. Multiple Employer Plans 5300, 10 Schedule Q g. Group Trusts Cover letter 13 h. Section 420 determination letters Cover letter, 16

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 Quali fied 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)), Leased 5300, 14 Employees (§ 414(n)) Schedule Q b. Minimum Funding Waiver 5300, 15 Schedule Q

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

(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. 99–4, page 115 of this Bulletin.

(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;

1999–1 I.R.B. 193 January 4, 1999

(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 As provided in Rev. Proc. 98–14, determination letter applications that are filed on or after April 27, 1998, will generally be reviewed by the Service taking into account changes in the plan qualification requirements made by GATT, TRA ’97, and those provisions of SBJPA that are effective before 1999. These changes in the qualification requirements will also be considered by the Service in its review of applications for opinion letters, notification letters, and advisory letters for master or prototype (M&P) plans, regional prototype plans, and volume submitter specimen plans, respectively, that are filed on or after April 27, 1998. Pursuant to Rev. Proc. 98–53, which modified Rev. Proc. 9814, however, sponsors of individually-designed plans, including volume submitter plans, may instead request that an application for a determination of a plan’s qualified status (other than a determination on plan termination) be reviewed without taking into account the requirements of GATT, TRA ’97, and SBJPA. In addition, determination letter applications for M&P and regional prototype plans (other than terminating plans) that have not

January 4, 1999 194 1999–1 I.R.B.

yet been amended to comply with the changes in the qualification requirements made by GATT, TRA ’97, and SBJPA will be reviewed without taking these changes into account. Until further notice, the Service will not take into account those changes in the qualification requirements made by SBJPA that are first effective after 1998 in issuing determination and other letters, except for determination letters for terminating plans. Until such notice is given, plans that include provisions that reflect the SBJPA qualification changes that are effective after 1998 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 SBJPA qualification changes that are effective after 1998. Also see Rev. Proc. 97–41, 1997–33 I.R.B. 51, and Rev. Proc. 98–14 regarding the remedial amendment period for GATT, SBJPA, and TRA ’97 plan amendments.