SECTION 8. EXTENSION OF THE

REMEDIAL AMENDMENT PERIOD UNDER § 401(b) TO THE END OF THE REMEDIAL AMENDMENT CYCLE

.01 This section extends the remedial amendment periods for disqualifying provisions that would otherwise apply under § 1.401(b)–1 to the end of the remedial amendment cycle. It also extends the time for adopting certain plan amendments for changes in guidance pertaining to plan qualification requirements to the end of the remedial amendment cycle. The effect of these extensions is that plan sponsors of individually designed plans generally will not need to adopt remedial amendments of disqualifying provisions, and will not need to apply for new determination letters, more than once every five years. Plan sponsors may, however, be required to adopt good faith plan amendments for legislative or guidance changes before the end of their five-year remedial amendment cycles, with the result that plan amendments may in some cases be required more frequently than every five years.

2004–40 I.R.B. 575 October 4, 2004

guidance changes relating to the plan qualification requirements is extended to the end of the plan’s first five-year remedial amendment cycle ending at least twelve months after the applicable change in guidance is first listed in the Service’s Cumulative List of Changes in Plan Qualification Requirements.

Example 3: The remedial amendment cycle for Plan Y is based on the last digit of Employer B’s TIN, which is 4. Plan Y’s cycle is Cycle D. The EGTRRA RAP for Plan Y ends January 31, 2010,

and the subsequent 5-year RAP cycle ends January 31, 2015. In December 2009, guidance is published requiring plans to be amended and effective for the plan year beginning in 2010. The guidance will appear on the November 2010 Cumulative List. While Employer B updates Plan Y for the RAP that ends January 31, 2010, any remedial plan amendments that may be required because of the guidance effective in 2010 would not have to be adopted until Employer B updates Plan Y for the RAP that ends January 31, 2015. Employer B would then adopt plan provisions reflecting guidance effective in 2010 retroactive to the first day of the 2010 plan year.