IRS to Issue Opinion Letters on the 3rd 6-Year Remedial Amendment Cycle for Pre-approved Plans

The IRS says in Announcement 2020-7 that it plans to issue opinion letters concerning the third six-year remedial amendment cycle for pre-approved DC plans by Jun 30, 2020 or shortly after that date. It made the announcement on June 1, 2020, which is also the date on which it is effective.

Announcement 2020-7 also says that:

• Starting Aug. 1, 2020, and ending July 31, 2022, the IRS will accept from any employer eligible to submit a determination letter request an application for an individual determination letter under the third six-year remedial amendment cycle for pre-approved DC plans.
• An employer adopting a newly approved plan will be required to adopt the plan document by July 31, 2022.
• The end of the third six-year remedial amendment cycle for pre-approved DC plans is Jan. 31, 2023. An adopting employer whose DC plan is eligible for the six-year remedial amendment cycle and who adopts a newly approved plan by July 31, 2022 will be considered to have adopted the plan within the third six-year remedial amendment cycle. 

Revenue Procedure 2017-41, 2017-29 I.R.B 92, sets forth procedures for providers of pre-approved plans to obtain opinion letters, once every six years, for qualified pre-approved plans submitted with respect to the third (and subsequent) six-year remedial amendment cycles.