Rev. Proc. 67-26

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to prescribe the procedure applicable with respect to pension, profit-sharing, annuity, and bond purchase plans which are amended solely to conform to the provisions of section 204 of The Foreign Investors Tax Act of 1966, Public Law 89-809, C.B. 1966-2, 656, at 691.

SEC. 2. BACKGROUND.

.01 In accordance with section 601.201(o) of the Statement of Procedural Rules, the Internal Revenue Service issues determination letters as to the qualification of plans and trusts under section 401(a) of the Internal Revenue Code of 1954 in the case of consummated and proposed transactions relating, among other things, to (1) the initial qualification of a plan and, if trusteed, the status for exemption of the trust, and (2) amendments to plans and trusts.

.02 Section 204 of Public Law 89-809 repealed paragraph (10) of section 404(a) of the Code to eliminate the special limitation on the amount allowed as a deduction for self-employed individuals for contributions to certain pension, etc., plans and provided a new definition of "earned income" from self-employment. These changes are effective with respect to taxable years beginning after December 31, 1967.

.03 Thus, many individual plans and master or prototype plans involving self-employed individuals with respect to which a favorable determination letter has been issued will be amended to conform to the changes made by Public Law 89-809.

SEC. 3. PROCEDURE.

.01 If the amendment only conforms the plan to the new provisions of law, the previously-issued favorable determination letter will apply to the plan as amended. Plans so amended are not to be resubmitted for further determination and no new determination letter will be issued.

SEC. 4. EFFECTIVE DATE.

This Revenue Procedure is effective May 15, 1967, the date of its publication in the Internal Revenue Bulletin.