SECTION 22. EFFECT ON

OTHER REVENUE PROCEDURES

.04 The prior qualification of a plan as adopted by an employer will not be considered to be adversely affected by the publication of a revenue ruling, a revenue procedure, or an administrative pronouncement within the meaning of § 1.6661–3(b)(2) of the regulations where:

(1) The plan was the subject of a favorable determination letter and the request for that letter contained no misstatement or omission of material facts;

(2) The facts subsequently developed are not materially different from the facts on which the determination letter was based;

(3) There has been no change in the applicable law; and

(4) The employer that established the plan acted in good faith in reliance on the determination letter.

However, all such plans must be amended to comply with the published revenue ruling for subsequent years. Unless specifically stated otherwise in the revenue ruling or in other published guidance of general applicability, the conforming amendment to an individually-designed plan must be adopted before the end of the first plan year that begins after the revenue ruling, revenue procedure, or administrative pronouncement is published in the Internal Revenue Bulletin and must be effective, for all purposes, not later than the first day of the first plan year beginning after the revenue ruling is published. For the rule as to the conforming amendment to an M&P plan, see section 12 of Rev. Proc. 2000–20.

.05 While a favorable determination letter may serve as a basis for determining deductions for employer contributions thereunder, it is not to be taken as an indication that contributions are necessarily deductible as made. This latter determination can be made only upon an examination of the employer’s tax return, in accordance with the limitations, and subject to the conditions of § 404.

Rev. Proc. 2001–6 is superseded. Rev. Proc. 2000–20 is modified to provide that an employer that adopts a nonstandardized M&P plan may rely on a favorable opinion letter for the plan without having to request a determination letter, to the extent provided in section 8 of this revenue procedure.

2002–1 I.R.B 243 January 7, 2002

SECTION 23. EFFECTIVE DATE This revenue procedure is effective January 7, 2002. However, with regard to determination letter application filing requirements, plan sponsors may follow the transitional rules in section I.G of Announcement 2001–77, as provided, and for the period specified, in Announcement 2001–122, 2001–51 I.R.B. 604.