SECTION 2. BACKGROUND

.01 Plans intended to satisfy § 401(a) or § 403(a) (“Qualified Plans”) are required to be amended for GUST within the GUST remedial amendment period. A plan’s GUST remedial amendment period generally ends on the later of February 28, 2002, or the last day of the first plan year beginning on or after January 1, 2001. See Rev. Proc. 2001–55, 2001–49 I.R.B. 552. Special rules apply to governmental plans, plans directly affected by the terrorist attack of September 11, 2001, and plans that are eligible for the extended GUST remedial amendment period that applies to master and prototype and volume submitter plans under section 19 of Rev. Proc. 2000–20, 2000–1 C.B. 553, as modified by Rev. Proc. 2000–27, 2000–1 C.B. 1272, Notice 2001–42, 2001–30 I.R.B. 70, and Rev. Proc. 2001–55.

.02 Rev. Proc. 2001–17, 2001–1 C.B. 589, describes the Employee Plans Compliance Resolution System (“EPCRS”), a comprehensive system of correction programs that, with respect to Qualified Plans, permits plan sponsors to correct qualification failures and thereby preserve the plans’ tax-favored status.