Cyclical remedial amendment period
Every individually designed plan qualified under Code Section 401(a) has a regular, five-year remedial amendment cycle. The cycles are staggered and spread over five-year periods. That is, the cycles commence in different years for different plans within a five-year period, so that different plans have different cycles. The effect of this system is that plan sponsors need to apply for a new determination letter generally only once every five years.
Preapproved plans have a similar, six-year amendment cycle.
Amendment Periods for EGTRAA
|Last Digit of Plan Sponsor EIN||Cycle||EGTRAA amendment period end date|
|1 or 6||Cycle A||Jan 31, 2007|
|2 or 7||Cycle B||Jan 31, 2008|
|3 or 8||Cycle C||Jan 31, 2009|
|4 or 9||Cycle D||Jan 31, 2010|
|5 or 0||Cycle E||Jan 31, 2011|
The end of a plan's EGTRRA remedial amendment cycle is the time by which plan sponsors must apply for a new determination letter, in order to have a letter on which to rely for qualification changes that have first been listed in the Cumulative Lists at least twelve months before the end of the plan's EGTRRA remedial amendment period and other qualification changes not described in section 4.03 of Rev Proc 2007-44, whether or not identified on the applicable Cumulative List.
Cycle C filings were permitted to be made as late as Feb. 2, 2009, due to the weekend.
A multiemployer plan under Code Section 414(f) is on Cycle D. Some Cycle D plans may make a one-time election to file in Cycle E for the current cycle only. See Notice 2008-108.
The "window" for employers to adopt the final version of a prototype or volume submitter plan approved under the first preapproved plan cycle ends on April 30, 2010. Form 5307 must also be filed by this date.
Cycles After the EGTRRA Cycles
The future of the cyclical remedial amendment period is uncertain, but at present the next cycle is scheduled as detailed below. Plans should be brought into compliance with the appropriate cumulative list and submitted by the deadline of the applicable cycle.
|Last Digit of Plan Sponsor EIN||Cycle||Amendment period end date|
|1 or 6||Cycle A||Jan 31, 2012|
|2 or 7||Cycle B||Jan 31, 2013|
|3 or 8||Cycle C||Jan 31, 2014|
|4 or 9||Cycle D||Jan 31, 2015|
|5 or 0||Cycle E||Jan 31, 2016|
Effect of Termination
Termination ends the remdial amendment period.
- Rev Proc 2005-66 established the remedial amendment cycle system.
- Rev Proc 2007-44 provided updated guidance.
- Rev Proc 2009-36 provides updated guidance for governmental plans.
See discretionary amendment for the timing rules regarding voluntary amendments to plans. See interim amendment for the timing rules regarding disqualifying changes that are not covered by the cyclical remedial amendment period.