SECTION 2. WHAT

CHANGES HAVE BEEN MADE TO REVENUE PROCEDURE 2017–4?

In general .01 This revenue procedure is a general update of Rev. Proc. 2017–4, 2017–1 I.R.B. 146, which sets forth general information about the types of advice provided by Employee Plans Rulings and Agreements; general procedures for letter ruling and determination letter requests; specific

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Changes related to pre- approved plan program

Changes to fees for EP VCP submissions

procedures for determination letter requests; and the user fees associated with advice requested from Employee Plans Rulings and Agreements. Procedures and user fees applicable to advice provided by the Commissioner, Tax Exempt and Government Entities, Exempt Organizations Office, are contained in Rev. Proc. 2018–5, this Bulletin.

.02 The changes to the pre-approved plan program set forth in Rev. Proc. 2017–41 apply solely to applications for opinion letters submitted with respect to a plan’s third (and subsequent) six-year remedial amendment cycles. The on-cycle submission period for pre-approved plan providers to submit applications for opinion letters for defined contribution plans for the third six-year remedial amendment cycle began on October 2, 2017, and will end on October 1, 2018. Thus, the applicable provisions of Rev. Proc. 2017–41 relating to opinion letter applications with respect to a plan’s third and subsequent six-year remedial amendment cycles have been incorporated into this revenue procedure.

Rev. Proc. 2015–36 continues to apply to certain opinion and advisory letter applications for defined contribution and defined benefit M&P and VS plans that may still be submitted with respect to cycles prior to the third six-year remedial amendment cycle. In addition, defined benefit M&P and VS plans will receive opinion or advisory letters relating to the second six-year remedial amendment cycle in 2018. Adopting employers will adopt such plans and request determination letters, if eligible, during an approximate two-year period that will be announced by the IRS at a future date. Thus, provisions relating to the M&P and VS programs described under Rev. Proc. 2015–36 that continue to apply to such pre-approved plans have been retained in this revenue procedure.

In addition to changes made throughout this revenue procedure relating to the restructure of the pre-approved plan program as described above, other changes specifically relating to the preapproved plan program include the following:

(1) Section 8.02 is revised to note that an adopting employer of a pre-approved M&P plan may file a Form 5307 with respect to the second six-year remedial amendment cycle if the employer has modified the plan to add overriding language to reflect §§ 415 and 416.

(2) Section 12.01(3) is modified to provide that a controlling member that makes non-extensive modifications to a VS multiple employer plan may apply for a determination letter on Form 5300 in the two-year window, regardless of whether a prior favorable determination letter has been issued. An adopting employer other than the controlling member may not apply for a determination letter. Related changes are made in section 8.02 and Appendix A, .06(1)(d).

(3) Section 17.05 is clarified to note that an adopting employer of a pre-approved plan must be otherwise eligible to submit a determination letter application in order to request a determination with respect to § 414(n).

(4) Section 30.11 is revised to add the appropriate unit to refer to in a request for reconsideration of a user fee with respect to opinion letter requests submitted under Rev. Proc. 2017–41.

(5) Appendix A, .05 is added to provide user fees for submissions pursuant to Rev. Proc. 2017–41.

.03 The user fee structure for VCP submissions is modified. The changes are as follows:

(1) Appendix A, .09, Schedule of User Fees for VCP submissions, is revised to change the user fees to: $1,500 for plans with assets of $500,000 or less; $3,000 for plans with assets of over $500,000 to $10,000,000; and $3,500 for plans with assets of over $10,000,000.

(2) The user fee for Group Submissions remains unchanged.

(3) The special fee waiver for terminating Orphan Plans remains unchanged.

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(4) All other reduced or alternative fees previously set forth in Appendix A, .09, no longer apply.

Changes to other fees .04 The user fee has also been modified for the following types of submissions:

(1) Appendix A, .02, User fee for opinion letters on prototype individual retirement accounts and/or annuities, SEPs, SIMPLE IRAs, SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs, is changed from $1,000 to $2,500.

(2) Appendix A, .06(1)(c), User fee for Form 5310 ( Application for Determination for Terminating Plan ), is changed from $2,300 to $3,000.

Other changes .05 In addition to minor non-substantive changes, including changes to dates, cross references, and citations to other revenue procedures, the following changes have been made:

(1) Section 5.04 is added to note that a request for a waiver of the minimum funding standard is submitted to the Office of Associate Chief Counsel (TEGE), and a determination letter request is no longer available. Related changes are made in section 31.01(1) and section 32.

(2) Section 6.02(11)(d), describing the practice of an enrolled actuary, is revised to add two additional Code sections listed in Circular No. 230.

(3) Sections 8.04, 11.02, and 11.03(1) are revised to delete provisions related to Cycle A determination letter submissions.

(4) Sections 10.17 and 10.18 are modified to provide that a status conference is requested from, and is held with, the Director, EP Rulings & Agreements.

(5) Section 11.05 is modified to state that individually designed plans submitted for determination letters during 2018 must be restated for compliance with the 2016 Required Amendments List (as well as any applicable prior Cumulative List).

(6) Sections 14.02 and 14.03 are clarified to state that a determination letter applicant for a multiple employer plan must request a letter for the plan in the name of the controlling member.

(7) Sections 22.03 and 23.08 are changed to provide that a petitioner’s request for § 7805(b) relief must be submitted to the agent or specialist assigned to the case, in order to have exhausted administrative remedies. In addition, other procedures formerly contained in Rev. Proc. 2017–4 relating to § 7805(b) requests are deleted.

(8) Section 23.05 is modified to provide that the Director, Employee Plans has the authority to revoke or modify a determination letter.

(9) Sections 24.01(2) and 26.02(2) relating to changes in funding methods, and section 31.01(1), are updated to refer to Rev. Proc. 2017–57, 2017–44 I.R.B. 474.

(10) Section 24.01(9) is modified to clarify the scope of a letter ruling involving requests by the plan sponsor of a multiemployer plan for approval of an extension of an amortization period.

(11) Sections 24.01(11) and 26.02(4) relating to approval of the use of a substitute mortality table, and section 31.01(1), are updated to refer to Rev. Proc. 2017–55, 2017–43 I.R.B. 373.

(12) Section 25.01 is clarified to state that EP may decline to issue a letter ruling due to resource constraints.

(13) Sections 29.04 and 29.10, regarding letter rulings, are modified to provide that a request for § 7805(b) relief to limit the retroactive effect of a revocation or modification should be submitted to the agent or specialist assigned to the case and to cross reference section 23.08.

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(14) Section 29.08 is modified to replace Office of Division Counsel (TEGEDC) with the Service.