SECTION 4. OPTION TO ELECT

CYCLE E AS INDIVIDUALLY DESIGNED GOVERNMENTAL PLAN’S INITIAL REMEDIAL AMENDMENT CYCLE

.01 The sponsor of an individually designed governmental plan may elect Cycle E (instead of Cycle C) as the plan’s initial (EGTRRA) remedial amendment cycle. The election is made by filing a determination letter application for the plan during the one-year submission period for the initial Cycle E (February 1, 2010 through January 31, 2011). No election form or notice to the Service is required. A sponsor of an individually designed governmental plan that submitted a determination letter application for the plan during the submission period for the initial Cycle C (February 1, 2008 through January 31, 2009) may withdraw the application. If the application was filed on or before November 7, 2008, the user fee paid with the application will be returned to the applicant, provided a written request to withdraw the application was submitted to the Service (postmarked) on or before January 31, 2009. Otherwise, as provided in section 19 of Rev. Proc. 2009–9, the user fee generally will not be returned.

.02 If the sponsor of an individually designed governmental plan elects to file a determination letter application for the

plan during the Cycle E submission period, all requirements for an individually designed plan submitted for a determination letter during the Cycle E submission period are applicable to the sponsor’s plan, including the requirement to amend the plan for all applicable items on the Cycle E Cumulative List and the requirement to timely adopt any interim amendments that are required for a governmental plan during Cycle C and Cycle D.

.03 A sponsor’s election of Cycle E, instead of Cycle C, as the initial (EGTRRA) remedial amendment cycle for an individually designed governmental plan applies only to that plan and only to that cycle. For any subsequent remedial amendment cycle, the plan’s cycle will revert to Cycle C. Therefore, if a sponsor of a governmental plan files a determination letter application for the plan during the initial Cycle E submission period ending on January 31, 2011, the determination letter that is issued will expire at the end of the Cycle C that next follows the initial Cycle C (January 31, 2014).