Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has extended the deadline for governmental retirement plans to be amended to reflect changes in the governing law. Reg. §1.401(b)-1(e)(3) and Rev. Proc. 2007-44, 2007-2 CB 54, generally provide that a plan sponsor has 91 days after its request for a determination letter has been rejected to make necessary retroactive remedial amendments. This 91-day extension may be insufficient for governmental plans if the governing body with authority to amend the plan is unable to do so because it is not in session or for other procedural reasons.

  Under the new procedure, the remedial amendment period extends through the 91st day after the last day of the first regular legislative session beginning more than 120 days after the date on which the application for determination is finally disposed of by the IRS or the Tax Court. The procedure also formalizes an option previously announced by the IRS. The sponsor of an individually designed governmental may elect Cycle E (February 1, 2010, through January 31, 2011) instead of Cycle C (February 1, 2008, through January 31, 2009) as the plan's initial (EGTRRA) remedial amendment cycle.

 
Rev. Proc. 2007-44 is modified.

Rev. Proc. 2009-36, 2009FED ¶46,444

Other References:

 
Code Sec. 401

  CCH Reference - 2009FED ¶17,929.65

 
Statement of Procedural Rules Sec. 601.201

  CCH Reference - 2009FED ¶43,360.2116

  Tax Research Consultant

  CCH Reference - TRC RETIRE: 51,052.20