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3 things to do if you made year-end changes to your retirement plan

A determination letter from the IRS gives you the assurance and validity that your plan meets the criteria for contributions to the plan to be tax exempt (non-Roth IRAs). However, if you make any changes to your retirement plan, including amendments, then you need a new determination letter. So, if you made changes to the plan that were due by December 31, make sure that you also take care of these three things:

1. Request a new determination letter. Work with your third party administrator to ask the IRS to review your revised plan document and issue you a favorable determination letter. The plan prototype may already have been deemed acceptable by the IRS and if this is the case make sure that you retain a copy of the letter.

2. Check the letter for consistency with your amendments. If you find an error, fax the letter sent to you with an explanation of the correction needed.

3. Administer the plan to according to the plan document. Failure to follow your plan document can nullify the tax exemption awarded by the IRS’ determination letter.

To request corrections for errors or to get a copy of your current determination letter, send your request via fax to 513-263-4330 and include:

–         Plan sponsor’s name, EIN and phone number

–         Plan name and number

–         Year that the letter was issued

–         Fax number to send the copy of the determination letter

If you prefer to mail your request, send to: Attn: Manager, EP Correspondence, IRS, P.O. Box 2508, Room 5-120, Cincinnati, OH 45201

For more information, see a list of FAQs about determination letters.

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