IRS EXTENDS AUTOMATIC APPROVAL PROCEDURE FOR CHANGES IN PLAN FUNDING METHODS.

Notice 90-63

This notice extends the effective date of Rev. Proc. 85-29, 1985-1 C.B. 581, through plan years beginning on or before December 31, 1991.

Section 412(c)(5) of the Internal Revenue Code, as amended, and section 302(c)(5) of the Employee Retirement Income Security Act of 1974 (ERISA), Pub. L. 93-406, 1974-3 C.B. 1, 40, states that a change in the funding method of a plan is effective only if the change is approved by the Secretary.

Rev. Proc. 85-29 gave approval, subject to certain restrictions and limitations, for changes to any acceptable funding method for plan years beginning on or after January 1, 1984, but not after December 31, 1989. This notice extends Rev. Proc. 85-29 to changes in funding method made with respect to plan years beginning on or after January 1, 1984, but not after December 31, 1991.

FOR FURTHER INFORMATION

The principal author of this notice is James E. Holland Jr., of the Employee Plans Technical and Actuarial Division. For further information regarding this notice, please contact the Employee Plans Technical and Actuarial Division's taxpayer assistance telephone service between the hours of 1:30 and 4:00 p.m., Eastern Time, Monday through Thursday on (202) 566-6783/6784 (not a toll-free number). Mr. Holland's telephone number is (202) 535-6768 (also not a toll-free number).