SECTION 10. EXCEPTIONS TO THE

GENERAL RULE FOR DETERMINING A PLAN’S FIVE-YEAR REMEDIAL AMENDMENT CYCLE

.01 The following rules apply to determine the five-year remedial amendment cycle of a plan maintained by more than one employer and a plan maintained by multiple members of a controlled group under § 414(b) or (c) or employers that are members of an affiliated service group under § 414(m).

.02 For a plan that is a multiemployer plan under § 414(f), the plan’s five-year remedial amendment cycle is Cycle D.

.03 For a plan that is a multiple employer plan, the plan’s five-year remedial amendment cycle is Cycle B.

.04 For a plan that is a governmental plan under § 414(d), including a governmental plan that is a multiple employer plan, the plan’s five-year remedial amendment cycle is Cycle C.

.05 For a plan maintained by multiple members of a controlled group under § 414(b) or (c) or an affiliated service group under § 414(m), the plan’s five year remedial amendment cycle is determined with reference to the last digit of the EIN that is or will be used to report the plan on

Form 5500, Annual Return/Report of Em- ployee Benefit Plan .

.06 Notwithstanding the rules set forth in sections 9 and 10.05 for determining a plan’s five-year remedial amendment cycle, if more than one plan is maintained by members of a controlled group under § 414(b) or (c) or an affiliated service group under § 414(m), the employers may elect that the five-year remedial amendment cycle for all plans maintained by any members of the group (other than multiemployer plans or multiple employer plans) will be Cycle A. The election must be made jointly by all members of the controlled or affiliated service group.

.07 If more than one plan is maintained by a controlled group under § 414(b) or (c) that falls under section 10.06 and that is a parent-subsidiary controlled group organization, an election may be made that the remedial amendment cycle be determined by reference to the last digit of the parent’s EIN. This election is to be made by the parent, in the case of a parent-subsidiary controlled group.

.08 The election described in section 10.06 or 10.07 must be made by the end of the earliest cycle (determined as of the date of the election) for which a determination letter application would have been required to be submitted. For example, if one

September 12, 2005 515 2005–37 I.R.B.

.02 If, as a result of one of the transactions described in this section, a plan’s current five-year remedial amendment cycle is shortened such that the period remaining in the cycle following the transaction is less than twelve calendar months, the plan’s current cycle is extended for twelve months and the next five-year cycle will be shortened accordingly. This extension does not apply to other plans of the employer that are not similarly affected. Thereafter, the plan’s five-year remedial amendment cycles will be determined as provided in section 9 or 10.