Notice 2013-84
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Proquest LLC |
2013 Cumulative List of Changes in Plan Qualification Requirements
I. PURPOSE
This notice contains the 2013 Cumulative List of Changes in Plan Qualification Requirements (2013 Cumulative List) described in section 4 of Rev. Proc. 200744,2007-2 C.B. 54. The 2013 Cumulative List is to be used by plan sponsors and practitioners submitting determination letter applications for plans during the period beginning
Plans using this Cumulative List will primarily be single employer individually designed defined contribution plans and single employer individually designed defined benefit plans that are in Cycle D and multiemployer plans as described in § 414(f). Generally an individually designed plan is in Cycle D if the last digit of the employer identification number of the plan sponsor is 4 or 9.
The list of changes in section IV of this notice does not extend the deadline by which a plan must be amended to comply with any statutory, regulatory, or guidance changes. The general deadline for timely adoption of an interim or discretionary amendment can be found in section 5.05 of Rev. Proc. 2007-44.
n. BACKGROUND
Rev. Proc. 2007-44 sets forth procedures for issuing opinion, advisory, and determination letters and describes the five-year remedial amendment cycle for individually designed plans and the sixyear remedial amendment cycle for preapproved plans. In addition, section 5.05 of Rev. Proc. 2007-44 provides the deadline for timely adoption of an interim amendment or discretionary amendment.
Under section 4 of Rev. Proc. 200744, the
In Notice 2012-76, 2012-52 I.R.B. 775, the Service published the 2012 Cumulative List of Changes in Plan Qualification Requirements (2012 Cumulative List).1
III. APPLICATION OF 2013 CUMULATIVE LIST
This notice is being issued in conjunction with the determination letter program for individually designed plans eligible for Cycle D. In accordance with Rev. Proc. 2007-44, the Service will start accepting determination letter applications for Cycle D individually designed plans beginning on
The 2013 Cumulative List, set forth in section IV of this notice, informs plan sponsors of issues the Service has specifically identified for review in determining whether a plan filing in Cycle D has been properly updated. Specifically, the 2013 Cumulative List reflects law changes under the Pension Protection Act of 2006 (PPA '06), Pub. L. 109-280; the U.S. Troop Readiness, Veterans' Care, Katrina Recovery and Iraq Accountability Appropriations Act, 2007, Pub. L. 110-28; the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act), Pub. L. 110-245; the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), Pub. L. 110-458; the Small Business Jobs Act of 2010 (SBJA), Pub. L. 111-240; the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (PRA 2010), Pub. L. No. 111192; the Moving Ahead for Progress in the 21st Century Act (MAP-21), Pub. L. 112-141; and the American Taxpayer Relief Act of 2012 (ATRA), P.L. 112-240.
Except as provided below, the Service will not consider in its review of any determination letter application for the submission period that begins
(1) guidance issued after
(2) statutes enacted after
(3) qualification requirements first effective in 2015 or later; or
(4) statutory provisions that are first effective in 2014, for which there is no guidance identified in this notice.
However, in order to be qualified, a plan must comply with all relevant qualification requirements, not just those on the 2013 Cumulative List.
The Service's review of a determination letter application filed in the Cycle D submission period will not consider the 2010 final hybrid plan regulations (other than with respect to § 411 (a)( 13)(A)) unless the plan has been amended to satisfy those regulations. For this purpose, the Service will only consider those provisions of the regulations that are effective for plan years beginning on or after
The 2013 Cumulative List includes the following guidance issued after
Final regulations under § 401(k) and § 401(m) provide guidance on permitted mid-year reductions or suspensions of safe harbor nonelective contributions in certain circumstances for amendments adopted after
Notice 2013-74,2013-521.RB. 819, provides guidance under new § 402A(c)(4)(E) of the Internal Revenue Code (the Code), as added by § 902 of
With respect to matters addressed by proposed regulations identified in the footnotes of section IV of this notice, the Service's review of the plan will be based on a reasonable interpretation of the statute, existing final regulations, or other published guidance. For this purpose, compliance with proposed regulations will be treated as meeting that standard. However, a determination letter cannot be relied on with respect to whether the plan complies with the proposed regulations.
Terminating plans must include all law changes in effect at the time of termination. See section 8 of Rev. Proc. 2007-44 regarding plan termination.
IV. 2013 CUMULATIVE LIST OF CHANGES IN PLAN QUALIFICATION REQUIREMENTS
The following list consists of statutory provisions and associated guidance which reflect changes to plan qualification requirements. Miscellaneous guidance is also provided. The Service has identified below plan qualification requirements that differ from those that were on the 2012 or earlier Cumulative Lists as "(New)."
Items from the 2008 Cumulative List have been deleted from the 2013 Cumulative List. Thus, the 2013 Cumulative List contains the plan qualification requirements in the 2009, 2010, 2011 and 2012 Cumulative Lists, as well as additional 2013 plan qualification requirements. The deletions have been made to enhance the utility of the cumulative list, by removing items that would have been previously reviewed in the case of a plan that was submitted during the initial Cycle D submission period (
1. 401(a):
* Notice 2008-98, 2008-2 C.B. 1080, provides that the Service and Treasury intend to amend the normal retirement age regulations to change the effective date for governmental plans to plan years beginning on or after
* Notice 2009-86, 2009-46 I.R.B. 629, provides that the Service and Treasury intend to amend the normal retirement age regulations to change the effective date for governmental plans to plan years beginning on or after
Rev. Rul. 2011-1, 2011-2 I.RB. 251, revises the generally applicable mies for group trusts and, if certain requirements are met, permits the participation in group trusts of custodial accounts under § 403(b)(7), retirement income accounts under § 403(b)(9), and governmental retiree benefit plans under § 401(a)(24). This revenue ruling also modifies the transition relief provided in Rev. Rul. 2008-40. (2011 C. L.)
Notice 2012-6, 2012-3 I.R.B. 293, extends and expands the transition relief provided under Rev. Rul. 2011-1 for certain group trusts, certain retirement trusts that qualify under the Puerto Rico Internal Revenue Code that participate in group trusts, and certain qualified retirement plans that benefit
Notice 2012-29, 2012-18 I.R.B. 872, provides that the Service and Treasury intend to modify the normal retirement age regulations to clarify that governmental plans that do not provide for in-service distributions before age 62 do not need to have a definition of normal retirement age and to modify the age-50 safe harbor rule for qualified public safety employees. The notice also provides that the Service and Treasury intend to amend the normal retirement age regulations to extend the effective date for governmental plans to annuity starting dates that occur in plan years beginning on or after the later of (1)
* Revenue Ruling 2013-17, 2013-38 I.R.B. 201, provides that for Federal tax purposes, the terms "spouse," "husband and wife," "husband," and "wife" include an individual married to a person of the same sex if the individuals are lawfully married under state law, and the term "marriage" includes such a marriage between individuals of the same sex and the Service adopts a general rule recognizing a marriage of same-sex individuals that was validly entered into in a state whose laws authorize the marriage of two individuals of the same sex even if the married couple is domiciled in a state that does not recognize the validity of same-sex marriages. (New)
2. 401(a)(9):
* Pursuant to PPA '06 § 823, final regulations under § 401(a)(9) were published on
* WRERA § 201(a) added § 401(a)(9)(H) which provides a suspension of the required minimum distribution mies for 2009 applicable to defined contribution plans. (2010 C. L.)
* Notice 2009-82, 2009-41 I.RB. 491, provides guidance relating to tiie suspension of the required minimum distribution mies for 2009 applicable to defined contribution plans. (2010 C. L.)
3. 401(a)(22):
* Notice 2011-19, 2011-11 I.R.B. 550, provides that the terms "readily tradable on an established securities market" and "readily tradable on an established market" mean employer securities that are readily tradable on an established securities market within the meaning of§ 1.40l(a)(35)-l(f)(5) for purposes of § 401(a)(22). Notice 2011-19 is effective for plan years that begin on or after
4. 401(a) (28) (C):
* Notice 2011-19 provides that the terms "readily tradable on an established securities market" and "readily tradable on an established markef' mean employer securities that are readily tradable on an established securities market within the meaning of § 1.40l(a)(35)-l(f)(5) for purposes of § 401(a)(28)(C). Notice 2011-19 is effective for plan years that begin on or after
5. 401(a)(35):
* WRERA § 109(a) amended the definition of one-participant retirement plan under § 401(a)(35)(E)(iv). (2009 C. L.)
* Notice 2009-97, 2009-52 I.RB. 972, extends the deadline to amend for § 401(a)(35) to the last day of the first plan year that begins on or after
* Final regulations under § 401(a)(35) were published on
* Notice 2013-17, 2013-20 I.R.B. 1082, provides relief from anticutback mies for an amendment to an ESOP to eliminate all in-service distribution options previously used to satisfy the diversification requirements of § 401(a)(28)(B)(i). (New)
6. 401(a)(37):
* HEART Act § 104(a) added § 401(a)(37) with respect to benefits payable on the death of a plan participant while performing qualified military service. (2010 C. L.)
* Notice 2010-15, 2010-6 I.R.B. 390, provides guidance regarding HEART Act § 104(a). (2010 C. L.) 7. 401(h) & 401(m):2
* HEART Act § 107(a) extends the applicability of the qualified reservist distribution to individuals ordered or called to active duty after
* Notice 2010-15 provides guidance regarding HEART Act § 107. (2010 C. L.)
* Final regulations under § 401(k) with respect to qualified automatic contribution arrangements were published on
* Rev. Rui. 2009-30, 2009-39 I.R.B. 391, provides information with respect to automatic contribution increases under automatic contribution arrangements. (2009 C. L.)
* Notice 2009-65,2009-39 I.R.B. 413, provides sample amendments that plan sponsors can use to add automatic contribution features to their plans. (2009 C. L.)
* Final regulations under § 401(m) with respect to qualified automatic contribution arrangements were published on
* Final regulations provide guidance on permitted mid-year reductions or suspensions of safe harbor nonelective contributions in certain circumstances for amendments adopted after
8. 402(c)(ll):
* WRERA § 108(f) requires that plans provide for nonspouse beneficiary rollovers under § 402(c)(ll), effective for plan years beginning after
9. 402(f):
* Notice 2009-68, 2009-39 I.R.B. 423, provides two safe harbor explanations that may be provided to recipients of eligible rollover distributions from an employer to satisfy § 402(f). (2009 C. L.)
* WRERA § 108(f)(2) amended § 402(f)(2)(A) with respect to the definition of eligible rollover distribution. (2009 C. L.)
10. 402(g)(2):
* WRERA § 109(b)(3) amended § 402(g)(2)(A)(ii) to eliminate the distribution of gap period earnings with excess deferrals. (2009 C. L.)
11. 402A:
* SBJA § 2112 added § 402A(c)(4) which permits rollovers of otherwise distributable amounts from a plan account other than a designated Roth account to the plan's designated Roth account. (2010 C. L.)
* Notice 2010-84, 2010-51 I.R.B. 872, provides guidance regarding § 402A(c)(4). (2010 C. L.)
* Notice 2013-74 provides guidance under new § 402A(c)(4)(E) relating to the expansion of rollovers from § 401(k) plans, § 403(b) plans, and governmental § 457(b) plans to designated Roth accounts in the same plan ("in-plan Roth rollovers"). Section 402A(c)(4)(E) provides for in-plan Roth rollovers of otherwise nondistributable amounts. This notice also provides guidance that applies to all inplan Roth rollovers under § 402A(c)(4). (New)
12. 409:
* Notice 2011-19 provides that the terms "readily tradable on an established securities market" and "readily tradable on an established market" mean employer securities that are readily tradable on an established securities market within the meaning of § 1.40l(a)(35)-l(f)(5) for purposes of § 409(h)(1)(B) and § 409(1). Notice 2011-19 is effective for plan years that begin on or after
13. 411(a):
* Rev. Rui. 2012-4,2012-8 I.R.B. 386, describes whether a qualified defined benefit pension plan that accepts a direct rollover of an eligible rollover distribution from a qualified defined contribution plan maintained by the same employer satisfies §§411 and 415 in a case in which the defined benefit plan provides an annuity resulting from the direct rollover. (2012 C. L.).
14. 411(a)(13):
* WRERA § 107(b)(2) amended § 411(a)(13)(A). (2009 C. L.)
* Notice 2009-97 extends the deadline for amending cash balance and other applicable defined benefit plans, within the meaning of § 41 l(a)(13)(C), to meet the requirements of § 41 l(a)(13) (other than § 411(a)(13)(A)) to the last day of the first plan year that begins on or after
* Final Regulations under § 411 (a)(l3) were published on
* Notice 2010-77, 2010-51 I.R.B. 851, extends the deadline for amending cash balance and other applicable defined benefit plans, within the meaning of § 411(a)(13)(C), to meet the requirements of § 41 l(a)(13) (other than § 411(a)(13)(A)) to the last day of the first plan year that begins on or after
* Notice 2011-85, 2011-44 I.R.B. 605, extends the deadline for adopting an interim or discretionary amendment under § 41 l(a)(13) (other than § 411(a)(13)(A)). (2011 C. L.)
* Notice 2012-61, 2012-42 I.R.B. 479, provides that certain provisions in the 2010 final hybrid plan regulations will not be effective for plan years beginning before
15. 411(b)(1):4
* Proposed regulations under § 411(b)(1) were published on
16. 411(b)(5):
* WRERA § 107(b)(1) amended § 411(b)(5). (2009 C. L.)
* Notice 2009-97 extends the deadline for amending cash balance and other applicable defined benefit plans, within the meaning of § 41 l(a)(13)(C), to meet the requirements of § 411(b)(5) to the last day of the first plan year that begins on or after
* Final Regulations under § 411(b)(5) were published on
* Notice 2010-77 extends the deadline for amending cash balance and other applicable defined benefit plans, within the meaning of § 41 l(a)(13)(C), to meet the requirements of § 411(b)(5) to the last day of the first plan year that begins on or after
* Notice 2011-85 announces that the
* Notice 2012-61 provides that certain provisions in the 2010 final hybrid plan regulations will not be effective for plan years beginning before
17. 411(d)(6):
* Final Regulations under § 411(d)(6), which provide an additional limited exception to the anti-cutback rules to a plan sponsor who is a debtor in a bankruptcy proceeding, were published on
* Notice 2013-17 provides relief from anti-cutback rules for an amendment to an ESOP to eliminate all in-service distribution options previously used to satisfy the diversification requirements of § 401(a)(28)(B)(i). (New)
18. 414(u):
* HEART Act § 104(b) amended § 414(u) by adding § 414(u)(9) regarding how a plan may provide benefit accruals for a person who dies or becomes disabled while performing qualified military service. (2010 C. L.)
* Notice 2010-15 provides guidance regarding HEART Act § 104(b). (2010 C. L.)
* HEART Act § 105(b)(1) added § 414(u)(12) with respect to the treatment of differential wage payments during the period a person, while on active duty, is performing service in the uniformed services. (2010 C. L.)
* Notice 2010-15 provides guidance regarding HEART Act § 105(b)(1). (2010 C. L.)
19. 414(w):
* WRERA § 109(b)(4), (5), and (6) amended § 414(w)(3), (5), and (6), respectively. (2009 C. L.)
* Final regulations under § 414(w) with respect to eligible automatic contribution arrangements were published on
* Rev. Rui. 2009-30 provides information with respect to automatic contribution increases under automatic contribution arrangements. (2009 C. L.)
* Notice 2009-65 provides sample amendments that plan sponsors can use to add automatic contribution features to their plans. (2009 C. L.)
20. 414(x):
* PPA '06 § 903(a) added § 414(x) with respect to special rules for eligible combined plans that consist of a defined benefit plan and a qualified cash or deferred arrangement. (2010 C. L.)
21. 415:
* WRERA § 103(a) changed the deadline to adopt PFEA amendments from the end of the 2008 plan year to the end of the 2009 plan year. (2009 C. L.)
* WRERA § 103(b)(2)(B)(i) amended § 415(b)(2)(E)(v) to change the mortality table to the applicable mortality table within the meaning of § 417(e)(3)(B). (2009 C. L.)
* Rev. Rui. 2012-4 describes whether a qualified defined benefit pension plan that accepts a direct rollover of an eligible rollover distribution from a qualified defined contribution plan maintained by the same employer satisfies §§411 and 415 in a case in which the defined benefit plan provides an annuity resulting from the direct rollover. (2012 C. L.)
22. 417:
* Rev. Rui. 2012-3, 2012-6 I.R.B. 383, describes how the qualified joint and survivor annuity ("QJSA)") and the qualified preretirement survivor annuity ("QPSA") rules, described in §§ 401(a)(ll) and 417, apply when a deferred annuity contract is purchased under a profit sharing plan. (2012 C. L.)
23. 420:
* MAP-21 § § 40241 and 40242 amend § 420 to extend the provisions relating to transfers of excess pension assets to retiree health accounts and to expand those provisions to allow transfers to retiree group term life insurance accounts. (2012 C. L.)
24. 431(b)(8):
* PRA 2010 § 211(a)(2) added § 431(b)(8), which provides two special funding rules available to multiemployer plans. (2011 C. L.)
* Notice 2010-83, 2010-51 I.R.B. 862, provides guidance with respect to the special funding rules under § 431(b)(8). (2011 C. L.)
25. 432:
* WRERA § 204 provides a temporary delay of designation of multiemployer plans in endangered or critical status. (2009 C. L.)
* Notice 2009-31, 2009-16 I.R.B. 856, as modified by Notice 200942,2009-20 I.R.B. 1011, provides election and notice procedures for multiemployer plans under WRERA § 204. (2009 C. L.)
* Rev. Proc. 2009-43, 2009-40 I.R.B. 460, provides procedures with respect to the revocation of elections by multiemployer plans to freeze funded status under WRERA § 204. (2009 C. L.)
* WRERA § 205 provides a temporary extension of the funding improvement or rehabilitation periods for multiemployer plans in endangered or critical status for 2008 or 2009. (2009 C. L.)
* Notice 2009-31, as modified by Notice 2009-42, provides election and notice procedures for multiemployer plans under WRERA § 205. (2009 C. L.)
26. 436:
* Section 1.436-1 provides guidance on the application of § 436, which provides a series of limitations on the accrual and payment of benefits under underfunded single employer defined benefit plans. (2012 C. L.)
* Notice 2011-3, 2011-2 I.R.B. 263, provides guidance on the special rules relating to the relaxation of § 436 rules that were included in the funding relief for single employer defined benefit pension plans under PRA 2010. (2012 C. L.)
* Notice 2011-96, 2011-52 I.R.B. 915, provides a sample plan amendment that plan sponsors may adopt to satisfy § 436 regarding limitations on the accrual and payment of benefits. The notice also extends both the deadline to amend a plan to satisfy § 436 and the period during which such an amendment is eligible for relief from the anticutback requirements of § 411(d)(6). (2012 C. L.)
* Notice 2012-70, 2012-51 I.R.B. 712, extends the deadline, as set forth in Notice 2011-96, to amend a defined benefit plan to satisfy the requirements of § 436 and provides associated relief from the requirements of § 411(d)(6). (2011 C. L.)
* Notice 2013-11, 2013-11 I.RB. 610, provides guidance on the 25-year average segment rates that are applied to adjust the otherwise applicable 24month average segment rates that are used to compute the minimum contribution requirements for single-employer defined benefit plans under § 430 of the Code and § 303 of the Employee Retirement Income Security Act of 1974 (ERISA), as amended by MAP-21, for plan years beginning in 2013. (New)
27. Miscellaneous:
* Rev. Rui. 2009-31, 2009-39 I.RB. 395, provides guidance with respect to annual paid time-off contributions. (2009 C. L.)
* Rev. Rui. 2009-32, 2009-39 I.R.B. 398, provides guidance with respect to paid time-off contributions at termination of employment. (2009 C. L.)
The following guidance contains sample or model amendments: Notice 2009-65 (automatic contribution features); Notice 2009-82 (suspension of the minimum distribution requirement for 2009); Rev. Rul. 2011-1 (group trusts); and Notice 2011-96 (limitations on the accrual and payment of benefits under underfunded single employer defined benefit plans).
DRAFTING INFORMATION
The principal author of this notice is
'For previous cumulative lists, see Notice 2011-97,2011-52 I.R.B. 923; Notice 2010-90,2010-52 I.R.B. 909; Notice 2009-98, 2009-52 I.R.B. 974; Notice 2008-108, 2008-2 C.B. 1275; Notice 2007-94, 2007-2 C.B. 1179; Notice 2007-3, 2007-1 C.B. 255; Notice 2005-101, 2005-2 C.B. 1219; and Notice 2004-84, 2004-2 C.B. 1030 for the 2011,2010, 2009, 2008, 2007, 2006, 2005, and 2004 Cumulative Lists, respectively.
2Proposed amendments to the regulations under 401(k) and 401(m) were published on
3Proposed regulations under 41 l(a)(13) were published on
4Proposed regulations under 411(b)(1) were published on
5Proposed regulations under 411(b)(5) also were published on
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