SECTION 2. BACKGROUND

.01 Prior to June 26, 2000, plan sponsors could not request determination letters under § 401(a) or § 403(a) that take into account the changes in the qualification requirements made by SBJPA that are first effective in plan years beginning after December 31, 1998, unless the determination related to a terminating plan. Instead, sponsors of individually-designed plans, including volume submitter plans, could request letters that take into

account all the changes in the qualification requirements made by GUST other than those changes made by SBJPA that are first effective in plan years beginning after December 31, 1998. (These letters are referred to in this revenue procedure as “GUST I letters.”) Alternatively, sponsors of individually-designed plans, including volume submitter plans, had the option to request determination letters that do not take into account any of the changes made by GUST, except for changes to § 401(a)(26) and § 414(n). (These letters are referred to as “preGATT letters.”) Determination letters for master or prototype (M&P) or regional prototype plans that have not yet been amended by their sponsors for GUST do not consider the changes made by GUST. See Rev. Proc. 98–14, 1998–1 C.B. 371, as modified by Rev. Proc. 98–53, 1998–2 C.B. 456, and section 3.03 of Rev. Proc. 2000–6, 2000–1 I.R.B. 187. .02 Proposed regulations (REG– 109101–98, 2000–16 I.R.B. 903) under § 411(d)(6), which were published in the Federal Register on March 29, 2000 (65 F.R. 16546), would permit qualified defined contribution plans to be amended to eliminate some alternative forms in which an account balance can be paid under certain circumstances, and would permit certain transfers between defined contribution plans that are not permitted under regulations now in effect. The proposed regulations are proposed to be effective upon publication of final regulations in the Federal Register and cannot be relied upon before finalization.

.03 Under § 401(b), plan sponsors have a remedial amendment period in which to adopt GUST plan amendments. Rev. Proc. 99–23, 1999–16 I.R.B. 5, provides that the GUST remedial amendment period for nongovernmental plans ends on the last day of the first plan year beginning on or after January 1, 2000. For governmental plans, as defined in § 414(d), the GUST remedial amendment period ends on the later of (i) the last day of the last plan year beginning before January 1, 2001, or (ii) the last day of the first plan year beginning on or after the “1999 legislative date” (that is, the 90 ^th day after the opening of the first legislative session beginning after December 31, 1998, of

June 26, 2000 1272 2000–26 I.R.B.

provisions of TRA ‘86 and subsequent legislation through OBRA ‘93 by the end of the generally applicable GUST remedial amendment period, that is, the end of the first plan year beginning on or after January 1, 2000.

.07 Plans that were submitted to the Service within certain deadlines for determination, opinion, or notification letters under TRA ‘86 and received favorable letters were entitled to extended reliance on their letters. However, plans with extended reliance are required to be amended to comply with regulations and administrative guidance of general applicability issued since the date of the plan’s favorable TRA ‘86 letter. Rev. Proc. 99–23 extended the time for adopting such amendments to the end of the GUST remedial amendment period.