The IRS recently released updated instructions for Form 5300, Application for Determination for Employee Benefit Plan; Form 5307, Application for Determination for Adopters of Modified Non-standardized Pre-Approved Plans; and Form 5310, Application for Determination for Terminating Plan.
Form 5300 is filed to request a determination letter from the IRS for the qualification of an individually designed or preapproved defined benefit or a defined contribution plan and the exempt status of any related trust and a determination that a 403(b) plan meets the requirements of §403(b). Form 5307 is filed if an employer has made limited modifications to a preapproved plan that does not create an individually designed plan. Form 5310 is used to request a determination letter as to the qualified status of a defined contribution or defined benefit plan upon plan termination.
The Form 5300 and Form 5310 instructions were updated to include §403(b) defined contribution plans. These changes are part of a larger IRS effort to align the procedures for §403(b) plans with those applicable to qualified §401(a) plans. The Form 5307 instructions reflect numerous format and information revisions for completion of the form electronically on pay.gov as of July 1, 2023.
Rev. Proc. 2023-4 contains the guidance under which the determination letter application programs are administered. For information regarding program changes under Rev. Proc. 2023-4, please see our January 19, 2023, article. An application should be filed under Rev. Proc. 2022-40 (with respect to individually designed plans) or Part III of Rev. Proc. 2016-37 (with respect to preapproved plans).
Plan sponsors seeking a determination letter for their defined contribution or defined benefit plan should be aware of the updated instructions and consult with their service providers for further information.
Instructions for Form 5300 (Rev. June 2023)» Instructions for Form 5307 (Rev. June 2023)» Instructions for Form 5310 (Rev. May 2023) »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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