Rev. Proc. 2023-37, 2023-51 I.R.B. 1491, permits a Pre-approved Plan to use either

of two formats: a single plan document or a basic plan document with an adoption agreement. See section 4.01(14) therein. This LRM reflects the latter format but recognizes that the former is also acceptable.

Plan provisions contained in this information package are arranged in three parts. Part I contains provisions generally applicable to all plans, Part II contains those provisions applicable to Standardized plans and Part III contains those applicable to Nonstandardized plans.

In addition to the provisions listed in Part II, Section 9.03 of Rev. Proc. 2023-37 identifies certain plan provisions in Part I, otherwise applicable to all Pre-approved Plans, that must be used for Standardized plans. These provisions are in LRM #6 (requiring a Standardized plan to use full compensation); LRMs #24, #25, #28 and #29 (all of which generally require a standardized plan to provide for a contribution allocation for each participant who either completes more than 500 hours of service during the plan year or is employed on the last day of the plan year); LRM #50 (a Standardized plan must make all optional benefit forms currently available to non-highly compensated employees); and LRM #83 (a Standardized plan must credit all service with predecessor employers or by granting credit for any prior service performed that meets the safe harbor at Reg.

§ 1.401(a)(4)-5(a)(3)).

In addition to the provisions listed in Part III, certain provisions of the LRMs may be modified for Nonstandardized plans. See generally Section 5.15 of Rev. Proc. 2023-37. These provisions are in LRMs # 7, #12 and #13 (these sections contain sample plan language that may be omitted in a Nonstandardized plan that precludes participation by self-employed individuals); LRM #22 (a nonstandardized plan can utilize the one-year holdout rule of IRC § 410(a)(5)(C)); and LRMs #24, #25, #28 and #29 (all of which provide that a Nonstandardized plan can generally provide an option to require a participant to be employed on the last day of the plan year and/or complete up to 1,000 hours of service during the plan year as a condition to receive an employer contribution).

Also, a money purchase plan may be combined with a profit-sharing plan (with or without a qualified cash or deferred arrangement (CODA) in the same Pre- approved Plan document. A Nonstandardized plan that contains employee stock ownership plan (ESOP) provisions may also include a qualified CODA. See sections 14.06 and 14.07 of Rev. Proc. 2023-37.

Certain capitalized terms used throughout this LRM have meanings which are defined in section 4 of Rev. Proc. 2021-37.

01/2024 (Revised 2-2024 and 12-2024)

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