SECTION 1. PURPOSE

This revenue procedure amplifies Rev. Proc. 2002–21, 2002–1 C.B. 911, relating

to relief provided to certain defined contribution plans maintained by professional employer organizations (PEOs) that benefit Worksite Employees who perform services for a client organization (CO). These plans are referred to below as PEO Retirement Plans. The questions and answers contained in this revenue procedure provide guidance on certain transitional issues that were raised by practitioners after the publication of Rev. Proc. 2002–21.