PART II. PROCEDURES FOR DETERMINATION LETTER REQUESTS›Rev. Rul. 2004-67 extends the ability to participate in group trusts to eligible governmental plans
SECTION 18. WHAT
Internal Revenue Bulletin 2023-1 · 2026-10-03 edition · updated 2026-10-04 · United States
ARE THE PROCEDURES FOR REQUESTING § 401(h) AND § 420 DETERMINATION LETTERS?
.06 A determination letter will be issued with respect to § 414(n) only if the employer requests and is otherwise eligible to receive such a determination, and the application includes:
(1) A description of the nature of the business of the recipient organization;
(2) A copy of the relevant leasing agreement(s);
(3) A description of the function of all leased employees within the trade or business of the recipient organization (including data as to whether all leased employees are performing services on a substantially full-time basis);
(4) A description of facts and circumstances relevant to a determination of whether such leased employees’ services are performed under primary direction or control by the recipient organization (including whether the leased employees are required to comply with instructions of the recipient about when, where, and how to perform the services, whether the services must be performed by particular persons, whether the leased employees are subject to the supervision of the recipient, and whether the leased employees must perform services in the order or sequence set by the recipient); and
(5) If the recipient organization is relying on any qualified plan(s) maintained by the employee leasing organization for purposes of qualification of the recipient organization’s plan, a description of such plan(s) (including a description of the contributions or benefits provided for all leased employees that are attributable to services performed for the recipient organization, plan eligibility, and vesting).
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Scope .01 This section provides procedures for requesting determination letters (i) with respect to whether the requirements of § 401(h) are satisfied in a plan with retiree medical benefit features, and (ii) on plan language that permits, pursuant to § 420, the transfer of assets in a defined benefit plan to a health benefit account described in § 401(h) or to an applicable life insurance account in the plan.
Required information for § 401(h) determination
Required information for § 420 determination
.02 EP Determinations will issue a determination letter that considers whether the requirements of § 401(h) are satisfied in a plan with retiree medical benefit features only if the plan sponsor requests such a determination, the plan sponsor is otherwise eligible to apply for a determination letter, and the plan sponsor’s application includes (in addition to the application forms and any other material required by this revenue procedure) a cover letter that requests consideration of § 401(h). The cover letter must specifically state that consideration is being requested with regard to § 401(h) in addition to other matters under § 401(a) and must specifically state the location of plan provisions that satisfy the requirements of § 401(h) (Part I of the checklist in Appendix C of this revenue procedure must be used to identify the location of relevant plan provisions).
.03 EP Determinations will consider the qualified status of certain plan language designed to comply with § 420 only if the plan sponsor requests such consideration with Form 5300, Application for Determination of Employee Benefit Plan. The cover letter must specifically state (i) whether consideration is being requested only with regard to § 420, or (ii) whether consideration is being requested with regard to § 420 in addition to other matters under § 401(a) (if consideration of other matters under § 401(a) is being requested, the application forms and other materials required by this revenue procedure must also be submitted). The cover letter must specifically state the location of plan provisions that satisfy each of the following requirements (Parts I and II of the checklist in Appendix C of this revenue procedure must be used to identify the location of relevant plan provisions).
(1) The plan must include a health benefits account as described in § 401(h).
(2) The plan must provide that transfers shall be limited to transfers of “excess assets” as defined in § 420(e)(2).
(3) The plan must provide that only one transfer may be made in a taxable year. However, if there is a transfer from a defined benefit plan to both a health benefits account and to an applicable life insurance account in the same taxable year, both transfers are treated as one transfer.
(4) The plan must provide that the amount transferred will not exceed the amount that is reasonably estimated to be the amount the employer will pay out (whether directly or through reimbursement) of the health benefit account and applicable life insurance account during the taxable year of the transfer for “qualified current retiree liabilities,” as defined in § 420(e)(1).
(5) The plan must provide that no transfer will be made after December 31, 2025.
(6) The plan must provide that any assets transferred, and any income allocable to such assets, will be used only to pay qualified current retiree health liabilities for the taxable year of transfer.
(7) The plan must provide that any amounts transferred to a health benefits account (and income attributable to such amounts) or an applicable life insurance account that are not used to pay qualified current retiree health liabilities will be transferred back to the defined benefit portion of the plan.
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SECTION 19A. WHAT RIGHTS TO NOTICE AND COMMENT DO INTERESTED PARTIES HAVE (QUALIFIED PLANS ONLY)?
Rights of interested parties
Comments by interested parties
(8) The plan must provide that the amounts paid out of a health benefits account will be treated as paid first out of transferred assets and income attributable to those assets.
(9) The plan must provide that the accrued pension benefits for participants and beneficiaries must become nonforfeitable as if the plan had terminated immediately prior to the transfer (or in the case of a participant who separated during the 1-year period ending on the date of transfer immediately before such separation). In the case of a transfer described in § 420(b)(4) that relates to a prior year, the plan must provide that the accrued benefit of a participant who separated from service during the taxable year to which such transfer relates will be recomputed and treated as nonforfeitable immediately before such separation.
(10) The plan must provide that a transfer will be permitted only if each group health plan or arrangement under which health benefits are provided contains provisions satisfying § 420(c) (3). The plan must define “applicable employer cost,” “cost maintenance period,” and “benefit maintenance period,” as applicable, consistent with § 420(c)(3), as amended. The plan may provide that § 420(c)(3) is satisfied separately with respect to individuals eligible for benefits under Title XVIII of the Social Security Act at any time during the taxable year and with respect to individuals not so eligible, and separately for applicable life insurance benefits with respect to individuals 65 or older at any time during the taxable year and with respect to individuals under age 65 during the taxable year.
(11) The plan must provide that transferred assets will not be used for key employees (as defined in § 416(i)(1)).
PART IIB. INTERESTED PARTY AND INTERESTED PERSON
NOTICE AND COMMENT
.01 Persons who qualify as interested parties under § 1.7476–1(b) with respect to a qualified plan have the following rights:
(1) To receive notice, in accordance with section 20A of this revenue procedure, that an application for an advance determination will be filed regarding the qualification of plans described in §§ 401, 403(a), 409, and/or 4975(e)(7);
(2) To submit written comments with respect to the qualification for such plans to the Service;
(3) To request the DOL to submit a comment to the Service on behalf of the interested parties; and
(4) To submit written comments to the Service on matters with respect to which the DOL was requested to comment but declined.
.02 Comments submitted by interested parties must be received by EP Determinations by the 45th day after the day on which the application for determination is received by EP Determinations
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(however, see sections 19A.03 and 19A.04 of this revenue procedure for filing deadlines in cases in which the DOL has been requested to comment). Such comments must be in writing and signed by the interested parties or by an authorized representative of such parties (as provided in section 6.02(11) of this revenue procedure), and addressed to:
Internal Revenue Service
EP Determinations
Attn: Customer Service Manager
P.O. Box 2508
Cincinnati, OH 45202
Comments must contain the following information:
(1) The names of the interested parties making the comments;
(2) The name and taxpayer identification number of the applicant for a determination;
(3) The name of the plan, the plan identification number, and the name of the plan administrator;
(4) Whether the parties submitting the comment are:
(a) Employees eligible to participate under the plan;
(b) Employees with accrued benefits under the plan, or former employees with vested benefits under the plan;
(c) Beneficiaries of deceased former employees who are eligible to receive or are currently receiving benefits under the plan; or
(d) Employees not eligible to participate under the plan;
(5) The specific matters raised by the interested parties on the question of whether the plan meets the requirements for qualification involving §§ 401 and 403(a), and how such matters relate to the interests of the parties making the comment; and
(6) The address of the interested party submitting the comment (or if a comment is submitted jointly by more than one party, the name and address of a designated representative) to which all correspondence, including a notice of the Service’s final determination with respect to plan’s qualification should be sent. (The address designated for notice by the Service will also be used by the DOL in communicating with the parties submitting a request for comment). The designated representative may be one of the interested parties submitting the comment or an authorized representative. If two or more interested parties submit a single comment and one person is not designated in the comment as the representative for receipt of correspondence, a notice of determination mailed to any interested party who submitted the comment shall be notice to all the interested parties who submitted the comment for purposes of § 7476(b)(5).
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Requests for DOL to submit comments
Right to comment if DOL declines to comment
.03 A request to the DOL to submit to EP Determinations a comment pursuant to section 3001(b)(2) of ERISA must be made in accordance with the following procedures.
(1) The request must be received by the DOL by the 25th day after the day the application for determination is received by EP Determinations. However, if the parties requesting the DOL to submit a comment wish to preserve the right to comment to EP Determinations in the event the DOL declines to comment, the request must be received by the DOL by the 15th day after the day the application for determination is received by EP Determinations.
(2) The request to the DOL to submit a comment to EP Determinations must:
(a) Be in writing;
(b) Be signed as provided in section 19A.02 of this revenue procedure;
(c) Contain the names of the interested parties requesting the DOL to comment and the address of the interested party or designated representative to whom all correspondence with respect to the request should be sent (see also section 19A.02(6) of this revenue procedure);
(d) Contain the information prescribed in section 19A.02(2), (3), (4), (5), and (6) of this revenue procedure;
(e) Indicate that the application was or will be submitted to EP Determinations at the address provided in section 31 of this revenue procedure;
(f) Contain a statement of the specific matters upon which the DOL’s comment is sought, as well as how such matters relate to the interested parties making the request; and
(g) Be addressed as follows:
Deputy Assistant Secretary
Employee Benefits Security Administration
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, D.C. 20210
Attention: 3001 Comment Request
.04 If a request described in section 19A.03 of this revenue procedure is made and the DOL notifies the interested parties making the request that it declines to comment on a matter concerning qualification of the plan which was raised in the request, the parties submitting the request may still submit a comment to EP Determinations on such matter. The comment must be received by the later of the 45th day after the day the application for determination is received by EP Determinations or the 15th day after the day on which notification is given by the DOL that it declines to submit a comment on such matter (see section 19A.07 of this revenue procedure for the date of notification). In no event may the comment be received later than the 60th day after the day the application for determination was received. Such a comment must comply with
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Confidentiality of comments
the requirements of section 19A.02 of this revenue procedure and include a statement that the comment is being submitted on matters raised in a request to the DOL upon which the DOL declined to comment.
.05 For rules regarding the confidentiality of contents of written comments submitted by interested parties to the Service pursuant to section 19A.02 or 19A.04 of this revenue procedure, see § 601.201(o)(5) of the Statement of Procedural Rules.
Availability of comments .06 For rules regarding the availability to the applicant of copies of all comments on the application submitted pursuant to section 19A.01(1), (2), (3), and (4) of this revenue procedure, see § 601.201(o)(5) of the Statement of Procedural Rules.
When comments are deemed made
SECTION 19B. WHAT NOTICE REQUIREMENTS APPLY TO INTERESTED PERSONS (§ 403(b) PLANS ONLY)?
Requirement to notify interested persons
Comments by interested persons
.07 An application for an advance determination, a comment to EP Determinations, or, in the case of a request to the DOL, shall be deemed made when it is received by EP Determinations or the DOL, as applicable. Notification by the DOL that it declines to comment shall be deemed given when it is received by the interested party or designated representative. The notice described in section 20A.01 of this revenue procedure shall be deemed given when it is posted or sent to the person in the manner described in § 1.7476–2. In the case of an application, comment, request, notification, or notice that is sent by mail or a private delivery service that has been designated under § 7502(f), the date as of which it shall be deemed received will be determined under § 7502. However, if such an application, comment, request, notification, or notice is not received within a reasonable period from the date determined under § 7502, the immediately preceding sentence will not apply.
.01 Interested persons must receive notice, in accordance with section 20B of this revenue procedure, that an application for an advance determination will be filed regarding whether a § 403(b) plan meets the requirements of § 403(b). An interested person with respect to a determination letter application of an ongoing § 403(b) plan is any employee participating in the plan or eligible to participate in the plan. An interested person with respect to a determination letter application of a terminating § 403(b) plan is any participant in the plan or any beneficiary eligible to receive or receiving benefits from the plan.
.02 Interested persons may submit written comments to the Service with respect to whether a § 403(b) plan meets the requirements of § 403(b). Comments submitted by interested persons must be received by EP Determinations by the 45th day after the day on which the application for determination is received by EP Determinations. Such comments must be in writing and signed by the interested persons or by an authorized representative of such persons (as provided in section 6.02(11) of this revenue procedure), and addressed to:
Internal Revenue Service
EP Determinations
Attn: Customer Service Manager
P.O. Box 2508
Cincinnati, OH 45202
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When comments are deemed made
Section 19B is not applicable to plan sponsors of governmental plans
SECTION 20A. WHAT ARE THE GENERAL RULES FOR NOTICE TO INTERESTED PARTIES (QUALIFIED PLANS ONLY)?
Comments must contain the following information:
(1) The names of the interested persons making the comments;
(2) The name and taxpayer identification number of the applicant for a determination;
(3) The name of the plan, the plan identification number, and the name of the plan administrator;
(4) Whether the persons submitting the comment are:
(a) Employees eligible to participate under the plan;
(b) Former employees with an account balance under the plan;
(c) Beneficiaries of deceased former employees who are eligible to receive or are currently receiving benefits under the plan; or
(d) Employees not eligible to participate under the plan;
(5) The specific matters raised by the interested persons on the question of whether the plan meets the requirements of § 403(b), and how such matters relate to the interests of the persons making the comment; and
(6) The address of the interested person submitting the comment (or if a comment is submitted jointly by more than one party, the name and address of a designated representative) to which all correspondence, including a notice of the Service’s final determination with respect to the plan meeting the requirements of § 403(b) should be sent. The designated representative may be one of the interested persons submitting the comment or an authorized representative. If two or more interested persons submit a single comment and one person is not designated in the comment as the representative for receipt of correspondence, a notice of determination mailed to any interested person who submitted the comment shall be notice to all the interested persons who submitted the comment.
.03 An application for an advance determination or a comment to EP Determinations shall be deemed made when it is received by EP Determinations.
.04 A plan sponsor of a governmental plan within the meaning of § 414(d) is not required to comply with this section 19B.
.01
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Notice to interested parties (1) Notice that an application for an advance determination regarding the qualification of a plan that is described in § 401, 403(a), 409, or 4975(e)(7) and that is subject to § 410 is to be made must be given to all interested parties in the manner prescribed in § 1.7476-2(c) and in accordance with the requirements of this section. A notice to interested parties is deemed to be provided in a manner that satisfies § 1.7476-2(c) if the notice is delivered using an electronic medium under a system that satisfies the requirements of § 1.401(a)-21.
Time when notice must be given
.02 Notice must be given not less than 10 days nor more than 24 days prior to the day the application for a determination is submitted. If an applicant fails to provide the notice in a timely manner, the application will be returned to the applicant. If, however, an application is returned to the applicant for failure to adequately satisfy the notification requirements with respect to a particular group or class of interested parties, the applicant need not cause notice to be given to those groups or classes of interested parties with respect to which the notice requirement was already satisfied merely because, as a result of the resubmission of the application, the time limitations for providing the notice in this subsection would not be met.
Content of notice .03 The notice referred to in section 20A.01 of this revenue procedure must contain the following information:
(1) A brief description identifying the class or classes of interested parties to whom the notice is addressed (e.g., all present employees of the employer, or all present employees eligible to participate);
(2) The name of the plan, the plan identification number, and the name of the plan administrator;
(3) The name and taxpayer identification number of the applicant for a determination;
(4) A statement that an application for a determination as to the qualified status of the plan must be made to EP Determinations at the address provided in section 31 of this revenue procedure, and whether the application relates to an initial determination, determination upon plan termination, or determination upon partial termination;
(5) A description of the class of employees eligible to participate under the plan;
(6) A statement of whether or not EP Determinations has issued a previous determination as to the qualified status of the plan;
(7) A statement that any person to whom the notice is addressed is entitled to submit, or request the DOL to submit, to EP Determinations a comment on the question of whether the plan meets the requirements of § 401 or 403(a); that two or more such persons may join in a single comment or request; and that if such persons, with respect to a qualified plan, request the DOL to submit a comment and the DOL declines to do so with respect to one or more matters raised in the request, the persons may still submit a comment to EP Determinations with respect to the matters on which the DOL declines to comment;
(8) The specific dates by which a comment to EP Determinations or, a request to the DOL must be received in order to preserve the right of comment (see section 19A of this revenue procedure);
(9) The number of interested parties needed in order for the DOL to comment; and
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Procedures for making information available to interested parties
Information to be made available to interested parties
Special rules if there are fewer than 26 participants
(10) Except to the extent that the additional information required to be made available to interested parties by sections 20A.05 through 20A.09 of this revenue procedure is included in the notice, a description of a reasonable procedure whereby such additional informational material will be available to interested parties (see section 20A.04 of this revenue procedure). A sample notice setting forth the above information in a case in which the additional information required by sections 20A.05 through 20A.09 of this revenue procedure will be made available at places accessible to the interested parties is provided in Appendix B1 to this revenue procedure.
.04 The procedure referred to in section 20A.03(10) of this revenue procedure, whereby the additional information required by sections 20A.05 through 20A.09 of this revenue procedure will (to the extent not included in the notice) be made available to interested parties, may consist of making such material available for inspection and copying by interested parties at a place or places reasonably accessible to such parties, or supplying such material by using a method of delivery or a combination thereof that is reasonably calculated to ensure that all interested parties will have access to the materials, provided such procedure is immediately available to all interested parties, is designed to supply them with such additional informational material in time for them to pursue their rights within the time period prescribed, and is available until the earlier of: 1) the filing of a pleading commencing a declaratory judgment action under § 7476 with respect to the qualification of the plan; or 2) the 92nd day after the day the notice of final determination is mailed to the applicant. Reasonable charges to interested parties for copying and/or mailing such additional informational material are permissible.
.05
Unless provided in the notice, or unless section 20A.06 of this revenue procedure applies, there shall be made available to interested parties under a procedure described in section 20A.04 of this revenue procedure:
(i) An updated copy of the plan and the related trust agreement (if any);
(ii) The application for determination; and
(iii) Any additional documents relating to the application which are submitted by or for the applicant to EP Determinations, or furnished by EP Determinations to the applicant.
.06 If there would be fewer than 26 participants in the plan, as described in the application (including, as participants, former employees with vested benefits under the plan, beneficiaries of deceased former employees currently receiving benefits under the plan, and employees who would be eligible to participate upon making mandatory employee contributions, if any), then in lieu of making the materials described in section 20A.05 of this revenue procedure available to interested parties who are not participants (as described above), there may be made available to such interested parties a document containing the following information:
(1) A description of the plan’s requirements respecting eligibility for participation and benefits and the plan’s benefit formula;
(2) A description of the provisions providing for nonforfeitable benefits;
(3) A description of the circumstances which may result in ineligibility, or denial or loss of benefits;
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Information described in § 6104(a)(1)(D) should not be included
Availability of additional information to interested parties
Availability of notice to interested parties
SECTION 20B. WHAT ARE THE GENERAL RULES FOR NOTICE TO INTERESTED PERSONS (§ 403(b) PLANS ONLY)?
(4) A description of the source of financing of the plan and the identity of any organization through which benefits are provided; and
(5) A description of any optional forms of benefits described in § 411(d)(6) that have been reduced or eliminated by plan amendment.
However, once an interested party or designated representative receives a notice of final determination, the applicant must, upon request, make available to such interested party (whether or not the plan has fewer than 26 participants) an updated copy of the plan and related trust agreement (if any) and the application for determination.
.07 Information of the type described in § 6104(a)(1)(D) should not be included in the application, plan, or related trust agreement submitted to EP Determinations. Accordingly, such information should not be included in any of the materials required by section 20A.05 or 20A.06 of this revenue procedure to be made available to interested parties.
.08 Unless provided in the notice, there shall be made available to interested parties under a procedure described in section 20A.04 of this revenue procedure any additional documents relating to the application which are submitted by or for the applicant to EP Determinations, or furnished by EP Determinations to the applicant; provided, however, if there would be fewer than 26 participants in the plan as described in the application (including, as participants, former employees with vested benefits under the plan, beneficiaries of deceased former employees currently receiving benefits under the plan, and employees who would be eligible to participate upon making mandatory employee contributions, if any), such additional documents need not be made available to interested parties who are not participants (as described above) until they, or their designated representative, receive a notice of final determination. The applicant may also withhold from such inspection and copying any information described in § 6104(a)(1)(C) and (D) which may be contained in such additional documents.
.09 Unless provided in the notice, there shall be made available to all interested parties under a procedure described in section 20A.04 of this revenue procedure the material described in sections 19A.02 through 19A.07 of this revenue procedure, as applicable.
Notice to interested persons .01 Notice that an application for an advance determination regarding whether a § 403(b) plan satisfies the requirements of § 403(b) must be given to all interested persons in accordance with the requirements of this section.
The notice described in this section 20B.01 shall be deemed given when it is posted or sent to the person by any method reasonably calculated to ensure that each interested person is notified of the application for a determination. If the notice to interested persons is delivered using an electronic medium under an electronic system that satisfies the applicable notice requirements of § 1.401(a)-21, the notice is deemed to be provided in a manner that satisfies the requirements of this section 20B.01.
Time when notice must be given
.02 Notice must be given not less than 10 days nor more than 24 days prior to the day the application for a determination is submitted. If an applicant fails to provide the notice in a timely
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manner, the application will be returned to the applicant. If, however, an application is returned to the applicant for failure to adequately satisfy the notification requirements with respect to a particular group or class of interested persons, the applicant need not cause notice to be given to those groups or classes of interested persons with respect to which the notice requirement was already satisfied merely because, as a result of the resubmission of the application, the time limitations for providing the notice in this subsection would not be met.
Content of notice .03 The notice referred to in section 20B.01 of this revenue procedure must contain the following information (a sample notice is provided in Appendix B2 to this revenue procedure):
(1) A brief description identifying the class or classes of interested persons to whom the notice is addressed;
(2) The name of the plan, the plan identification number, and the name of the plan administrator;
(3) The name and taxpayer identification number of the applicant for a determination;
(4) A statement that an application for a determination as to whether the plan meets the requirements of § 403(b) has been made to EP Determinations at the address provided in section 31 of this revenue procedure, and whether the application relates to an initial determination or determination upon plan termination;
(5) A description of the class of employees eligible to participate under the plan;
(6) A statement of whether or not EP Determinations has issued a previous determination as to the whether the plan has satisfied the requirements of § 403(b);
(7) A statement that any person to whom the notice is addressed is entitled to submit, to EP Determinations, a comment on the question of whether the plan meets the requirements of § 403(b); and that two or more such persons may join in a single comment or request;
(8) The specific dates by which a comment to EP Determinations must be received in order to preserve the right of comment (see section 19B.02 of this revenue procedure); and
(9) A description of where the additional information required by section 20B.04 of this revenue procedure will be made available at places accessible to the interested persons.
Information to be made available to interested persons
Information described in § 6110(c) should not be included
.04 Interested persons may request the following information from the plan sponsor:
(1) An updated copy of the plan and custodial agreement or annuity contract; and
(2) The application for determination.
Reasonable charges to interested persons for copying and/or mailing such informational materials are permissible.
.05 Information of the type described in § 6110(c) should not be included in the application, plan, or custodial agreement or annuity contract submitted to EP Determinations. Accordingly,
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Section 20B is not applicable to plan sponsors of governmental plans
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