SECTION 17. ADVISORY LETTER

APPLICATIONS - INSTRUCTIONS TO VS PRACTITIONERS

.01 The IRS Issues Advisory Letters The IRS will, upon the request of a VS practitioner, issue an advisory letter as to the acceptability of the form of the VS practitioner’s specimen plan under § 401(a), 403(a), or 4975(e)(7).

.02 Procedure for Requesting Advisory Letters - A request for an advisory letter relating to a specimen plan must be submitted on the current version of Form 4461, Application for Approval of Master or Prototype or Volume Submitter Defined Contribution Plans, Form 4461–A, Appli- cation for Approval of Master or Proto- type or Volume Submitter Defined Benefit Plan, or Form 4461–B, Application for Approval of Master or Prototype or Vol- ume Submitter Plans Mass Submitter Adopting Sponsor or Practitioner, as appropriate. Additionally, the request must be accompanied by the required user fee submitted with Form 8717–A , User Fee for Employee Plan Opinion and Advisory Letter Request, a signed certification that all necessary amendments required by the IRS to retain the qualified status of the VS practitioner’s specimen plan have been made and communicated to all adopting employers, and Attachment I to Form 4461 or Attachment I-A to Form 4461-A, as applicable. These forms and attachments may be downloaded from the Internet at the following address: http://www.irs. gov/Retirement-Plans/Preapproved-Plan- Submission-Procedures. All information on the first page of the application must be typed. The request must be sent to the address in section 20.

.03 Separate Specimen Plans and Applications Required for Different Categories of Plans (1) Specimen plans that consist of a basic plan document and adoption agreement. Except as provided in this section 17.03(1), the rules in section 7.04 (disregarding references therein to standardized and nonstandardized plans) apply

to a specimen plan that consists of a basic plan document and adoption agreement as if the specimen plan were a M&P plan.

In addition, the same basic plan document may not be used for both nongovernmental specimen plans (i.e., specimen plans that are not described in § 414(d)) and governmental specimen plans. However, separate governmental defined contribution specimen plans may have the same basic plan document and separate governmental defined benefit specimen plans may have the same basic plan document.

A separate application form is required to be submitted for each specimen plan, that is, for each basic plan document/ adoption agreement combination (if the specimen plan consists of a basic plan document and adoption agreement). In the case of a simultaneous submission of plans using the same basic plan document, only one copy of the basic plan document should be provided. If the requests are not simultaneous, the sponsor must submit a copy of the basic plan document with each submission and include a cover letter identifying the original submission. The plan number of such basic plan document must remain the same as in the prior submission.

(2) Specimen plans that consist of a single document without an adoption agreement. A separate specimen plan and application is required for each of the following categories of specimen plans that consist of a single document without an adoption agreement: a profit-sharing plan (with or without a § 401(k) arrangement), a money purchase pension plan that is not a target benefit plan, a target benefit plan, an ESOP, and a defined benefit plan. In addition, a separate specimen plan and application is required for each of the categories of plans in the preceding sentence if the specimen plan is a governmental plan. Different categories may not be combined in a single specimen plan or application. Thus, for example, separate specimen plans and application forms must be submitted for a governmental defined benefit specimen plan that consists of a single document without an adoption agreement and a nongovernmental defined benefit specimen plan that consists of a

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single document without an adoption agreement.

.04 Sample Language - A Listing of Required Modifications (LRM) containing sample plan language is available from the IRS. Although the sample language is designed for use in M&P plans, which use an adoption agreement format, VS practitioners should refer to the sample language as a guide in drafting VS plans. To expedite the review of their plans, VS practitioners are encouraged to use LRM language if appropriate and to identify the location of such language in their plan documents. LRMs may be downloaded from the Internet at http:// www.irs.gov/Retirement-Plans/Listing-of- Required-Modifications-LRMs .

.05 Timing of Issuance of Advisory Letters - The IRS intends to issue advisory letters to VS practitioners and VS mass submitters (as well as opinion letters to M&P mass submitters and sponsors) at approximately the same time within the applicable six-year cycle. In the interim, the IRS will send a notification to the applicable M&P or VS mass submitter, sponsor, or VS practitioner if the IRS determines that the plan appears to be in full compliance with the applicable qualification requirements, based on the submissions and the completed review. Notwithstanding the preceding sentence, this notification only provides assurance that the IRS believes the plan appears to meet the applicable qualification requirements under review as of the date of the notification. This notification is for the convenience of the applicable sponsor, VS practitioner, or mass submitter, but does not constitute an official opinion or advisory letter. Until issuance of the official opinion or advisory letter no reliance exists. The IRS reserves the right to require changes after the notification is sent, in its sole discretion.