SECTION 2. WHAT

CHANGES HAVE BEEN MADE TO THIS PROCEDURE?

.01 This revenue procedure sets forth the procedures of the Internal Revenue Service for issuing determination letters on the qualified status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans (ESOPs) under §§ 401, 403(a), 409 and 4975(e)(7) of the Internal Revenue Code of 1986, and the status for exemption of any related trusts or custodial accounts under § 501(a). Also see Rev. Proc. 2007–44, 2007–2 C.B. 54, as modified by Rev. Proc. 2008–56, 2008–2 C.B. 826, Rev. Proc. 2009–36, 2009–2 C.B. 304, Notice 2009–97, 2009–2 C.B. 972, Notice 2010–77, 2010–51 I.R.B. 851 and Rev. Proc. 2012–50, 2012–50 I.R.B. 708, which contains a description of the determination letter program, including when to submit a request for a determination letter within the 5-year and 6-year staggered remedial amendment cycles, that apply to individually designed and pre-approved (Master & Prototype and Volume Submitter (VS)) plans. Also see Rev. Proc. 2015–36, 2015–27 I.R.B. 20, for procedures for pre-approved plans.

.02 Part I of this revenue procedure contains instructions for requesting determination letters for various types of plans and transactions. Part II contains procedures for providing notice to interested parties and for interested parties to comment on determination letter requests. Part III contains procedures concerning the processing of determination letter requests and describes the effect of a determination letter.

In general .01 This revenue procedure is a general update of Rev. Proc. 2015–6, 2015–1 I.R.B 194, which contains the Service’s general procedures for employee plans determination letter requests.

Changes relating to Ann. .02 Announcement 2015–19, 2015–32 I.R.B. 157, describes changes to the Employee Plans 2015–19 determination letter program for qualified plans. Effective January 1, 2017, the staggered 5-year determination letter remedial amendment cycles for individually designed plans, as described in Rev. Proc. 2007–44, will be eliminated (except that sponsors of Cycle A plans will be permitted to submit applications during the period beginning February 1, 2016, and ending January 31, 2017). The scope of the determination letter program for individually designed plans will be limited to initial plan qualification, qualification upon plan termination, and certain other limited circumstances. As of July 21, 2015, the Service ceased accepting off-cycle determination letter applications (as defined in section 14 of Rev. Proc. 2007–44), except with respect to new and terminating plans.

In anticipation of future changes to the Employee Plans determination letter program eliminating the 5-year remedial amendment cycles, this revenue procedure provides that, effective as of January 4, 2016, determination letters issued to individually designed plans will no longer contain an expiration date (currently required under section 13.02 of Rev. Proc.

Sec. 2.02 Bulletin No. 2016–1 203 January 4, 2016

2007–44). In response to comments submitted with respect to Ann. 2015–19, the Department of the Treasury and the Service intend to issue guidance with respect to the status of existing expiration dates on determination letters issued prior to January 4, 2016.

The following changes relating to Announcement 2015–19 have been made:

(1) Section 7.03 has been modified to reflect the restrictions on off-cycle determination letter

applications. (2) Section 10.05 has been modified to reflect the restrictions on off-cycle determination

letter applications. (3) Section 21.01 has been modified to provide that determination letters issued to sponsors of

individually designed plans on or after January 4, 2016, will not contain an expiration date. (4) Section 23 has been modified to state that this revenue procedure is effective February 1, 2016

except that the elimination of expiration dates on determination letters under section 21.01 is effective on January 4, 2016.

Other Changes .03 The following additional changes have been made. These changes are in addition to minor revisions, such as updating references, and the changes relating to Ann. 2015–19 set forth in section 2.02 above.

(1) Section 1.01 has been modified to delete language relating to the effective date of this

revenue procedure, because the effective date is described in section 23. (2) Section 3.03 has been modified to provide that the Service will accept determination letter

applications for the third Cycle A from 2/1/16 to 1/31/17. (3) The heading of section 5.03 has been clarified to reflect that a plan may be reviewed for

a design-based safe harbor rather than a nondiscrimination in amount requirement. (4) Section 6.04 regarding EPCRS documentation to include for any closing agreement or

compliance statement has been clarified. (5) Sections 6.09, 7.02(5), 9.02(2)(a), 12.02(6) and 13.03(1) have been modified to note that

until a revised Form 8717, User Fee for Employee Plan Determination Letter Request, is published taxpayers should use the existing form but refer to applicable user fees in Rev. Proc. 2016–8, section 6. (6) Section 6.11 has been modified to provide that a determination may be made that an

application is not complete and cannot be processed due to a failure to disclose or distinguish contrary authorities. (7) Section 6.13 regarding processing of incomplete applications has been clarified to note

that the application will not be returned. (8) Section 12.02 has been modified to add Schedule SB for defined benefit plans as one of

the forms required when requesting a determination letter in specified circumstances. (9) Section 16.03(5) regarding required information for a § 420 determination has been

revised to state that the plan must provide that no transfer will be made after 12/31/2025. (10) Section 18.06 has been modified to delete (6) regarding documents on coverage schedules

or other demonstrations. (11) Question 5 Part II of the checklist to the Appendix relating to § 420 applications has been

revised to change the date from 12/31/2021 to 12/31/2025.

Other guidance .04 Other guidance affecting this revenue procedure:

(1) Rev. Proc. 2015–36, 2015–27 I.R.B. 20 describes the procedures for the “pre-approval” of plans under the master and prototype (M&P) program and the VS program. Rev. Proc. 2007–44 describes a system of remedial amendment cycles that applies to pre-approved plans and individually designed plans, and the deadlines to submit applications for opinion, advisory and determination letters. The Service issues a Cumulative List every year identifying changes affecting plan qualification requirements.

(2) The 2015 Cumulative List is contained in [Notice 2015–84].

Sec. 2.04 January 4, 2016 204 Bulletin No. 2016–1