Rev. Proc. 74-40

Section 1. Purpose.

.01 This Revenue Procedure provides supplemental and revised procedures of the Internal Revenue Service pertaining to the issuance of rulings, determination letters and opinion letters relating to master and prototype pension, annuity, and profit-sharing plans (except those covering self-employed individuals) under section 401(a) of the Internal Revenue Code of 1954, and the status for exemption of related trusts or custodial accounts under section 501(a).

.02 This revision is made because the Employee Retirement Income Security Act of 1974 (Public Law 93-406), approved September 2, 1974 (hereinafter referred to as "the Act"), adds new requirements relating to employees' plans and trusts under sections 401(a) and 501(a) of the Code.

Sec. 2. Background and General Information.

.01 The general procedures of the Service relating to the issuance of rulings, determination letters, and opinion letters are set forth in Rev. Proc. 72-3, 1972-1 C.B. 698. Rev. Proc. 72-6, 1972-1 C.B. 710, provides the detailed procedures relating to the issuance of determination letters as to the qualification of employees' plans under sections 401 and 405 of the Code and to the exempt status of related trusts or custodial accounts, if any, under section 501(a). For revision of these procedures see Rev. Proc. 74-38.

.02 Rev. Proc. 72-7, 1972-1 C.B. 715, contains procedures relating to master and prototype plans that include self-employed individuals. For revision of these procedures see Rev. Proc. 74-39.

Sec. 3. Procedures.

.01 Until further notice, any opinion letter issued on a master or prototype plan will remain in effect.

.02 Until further notice, the National Office will not consider any request of a sponsoring organization, filed with the National Office after September 2, 1974, as to:

(1) The initial acceptability of the form of a master or prototype plan and any related trust or custodial account, or

(2) The acceptability of an amendment to a master or prototype plan except where the amendment is necessary to maintain the plan's approved form under the law in effect prior to amendment by the Act.

.03 District Directors are authorized, to the same extent (and subject to the same limitations) provided in Rev. Proc. 74-38, to issue determination letters as to the qualification of a plan of a particular employer, if that employer has adopted a master or prototype plan that is approved by the National Office as to form.

Sec. 4. Effect on Other Documents.

.01 Section 5.05 of Rev. Proc. 72-8, prescribing use of Form 4462, is specifically revised to require applications of plans established after January 1, 1974, to show on line 10 of Form 4462 the date the first plan year began. For plans in existence on or before January 1, 1974, the beginning of the most recent plan year is to be shown on line 10 of Form 4462.

.02 The general procedures of Rev. Proc. 72-8 will continue to apply except to the extent they are inconsistent with this Revenue Procedure. Rev. Proc. 72-8 modified.

Sec. 5. Effective Date.

The Revenue Procedure is effective September 2, 1974.

¹ Also released as Technical Information Release 1309, dated September 11, 1974.