RULINGS ON MASTER OR PROTOTYPE PENSION PLANS

Rev. Proc. 84-23

SECTION 1. PURPOSE

This revenue procedure updates Rev. Proc. 80-29, 1980-1 C.B. 681, to set forth the procedures of the Internal Revenue Service pertaining to the issuance of opinion letters relating to master or prototype pension, annuity, and profit-sharing plans involving sections 401 and 403(a) of the Internal Revenue Code, as amended by the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), Pub. L. 97-248, 1982-2 C.B. 462, and the status for exemptions of related trusts or custodial accounts under section 501(a).

SECTION 2. GENERAL INFORMATION

01 Rev. Proc. 83-36, 1983-1 C.B. 763, sets forth the general procedures of the Service relating to the issuance of rulings, determination letters, and opinion letters on Employee Plans and Exempt Organization matters.

02 Rev. Proc. 80-29 sets forth the general procedures relating to the issuance of opinion letters by the National Office as to the acceptability of the form of master and prototype plans.

03 Rev. Proc. 80-30, 1980-1 C.B. 685, sets forth the general procedures relating to the issuance of determination letters on the qualification of pension, profit-sharing, stock bonus, and bond purchase plans.

04 TEFRA substantially altered the requirements that a plan must meet in order to be qualified under section 401(a) of the Code. The TEFRA qualification changes are effective for years beginning after December 31, 1983, except for provisions amending Code section 415, which have an earlier effective date. The Service has issued substantive guidelines, specifically cited later in this revenue procedure, for conforming plans to the TEFRA requirements.

SECTION 3. OVERVIEW OF REVENUE PROCEDURE

01 RELIANCE--Under Rev. Proc. 80-29, most master and prototype plans designed to cover self-employed individuals (HR-10 M & P's) were automatically deemed to satisfy the requirements of section 401(a) of the Code with respect to a particular adopting employer where the sponsor of the master or prototype plan had been issued a favorable opinion letter. However, most opinion letters issued for master and prototype plans not designed to cover self-employed individuals (corporate M & P's) did not express an opinion with respect to whether the plan as adopted by an employer satisfied the requirements for qualification under section 401(a). An employer wishing to know the effect of the adoption of an approved corporate M & P could, however, request a determination letter from the Service as to whether the plan as adopted was qualified. Except in the case of rare or unusual circumstances, an employer adopting an HR-10 M & P received automatic assurance that any disqualification of the plan would be non-retroactive (i.e. reliance), but an employer adopting a corporate M & P needed to obtain a favorable determination letter (and satisfy section 13 of Rev. Proc. 80-30) to have the same reliance. The difference in treatment between HR-10 and corporate M & P's stemmed from the fact that under corporate M & P's many of the qualification requirements (such as coverage and discrimination) depended on the facts and circumstances of the particular employer, while under HR-10 M & P's, the plan would attain qualified status solely on the basis of the applicable statutory provisions.

TEFRA changed the law relating to both plans that cover self-employed individuals and plans that do not. Most of the distinctions between these two types of plans were eliminated. Consequently, plans covering self-employed individuals may utilize plan provisions for which plan qualification may vary with the facts and circumstances of adopting employers. Because the previous distinctions between HR-10 and corporate M & P's have disappeared, it is necessary for the Service to make changes with respect to the reliance on opinion letters. Notwithstanding the changes made by TEFRA, some plans may still attain qualified status without regard to the particular facts and circumstances of the adopting employers. An employer adopting such a plan, a standardized form plan, for which a favorable opinion letter has been issued does not need a determination letter in order to obtain reliance. For the definition of standardized form plan see section 4.07. For special instructions applicable to standardized form plans see section 6. An employer adopting any master or prototype plan other than a standardized form plan must obtain a determination letter for that plan in order to obtain reliance.

02 DEFINED CONTRIBUTION M & P's ALLOCATION PROVISION/EMPLOYER RELIANCE--Rev. Rul. 76-250, 1976-2 C.B. 124, holds that a defined contribution plan may require that a participant be employed as of the last day of the plan year to share in the allocation of employer contributions for that year (employment requirement) but that such an employment requirement may result in prohibited discrimination. Whether or not a defined contribution plan that contains such an employment requirement is discriminatory can only be determined from the facts and circumstances in the actual operation of the plan. Under this revenue procedure defined contribution M & P's, including standardized form plans (see section 4.07), may contain this employment requirement. However, a defined contribution M & P which contains this employment requirement, including a standardized form plan and a plan for which a favorable determination letter has been issued, may subsequently become discriminatory in operation and lose its qualified status as of the date it becomes discriminatory.

03 REDUCTIONS IN PERMISSIBLE NUMBER OF PLANS--Pre-TEFRA, sponsors frequently maintained a large number of different master and prototype plans (HR-10, corporate, pension, profitsharing, etc.). Because of the parity provisions of TEFRA, the same master or prototype plan can be used for corporate and non-corporate employers. Thus, a single TEFRA plan may be used to replace several plans. However, the sponsor should indicate in accordance with section 9.03 the master or prototype plans that the new plan replaces.

Under this revenue procedure, combinations of certain categories of plans in one document are not permitted. See section 9.04. However, to ease the administrative burden, the use of one basic plan document for a combination of defined contribution plans and one basic plan document for several defined benefit plans is permitted. See section 4.04 for the definition of the term "basic plan document." The only differences will be in the adoption agreements. See section 4.03 for the definition of the term "adoption agreement."

04 MULTIPLE PLANS--A sponsor may utilize one basic plan document with respect to several plans. A sponsor, for example, may submit four plans with respect to a given defined benefit basic plan document (an integrated standardized form plan, a nonintegrated standardized form plan, a non-integrated non-standardized form plan, and an integrated non-standardized form plan). A sponsor also may use one basic plan document for a money purchase plan other than a target benefit plan, a target benefit plan, and a profit-sharing plan. A separate adoption agreement and completed application form must be submitted with respect to each such defined benefit and defined contribution plan. In the case of a simultaneous submission, only one basic plan document need be provided. If the request is not simultaneous, separate basic plan documents must be submitted (but the number of the basic plan document remains the same).

Paired plans must be submitted simultaneously. See section 4.08 for the definition of the term "paired plans." Paired plans are paired by the basic plan documents. Two defined contribution plans that are paired (a profit-sharing a money purchase plan) must share one basic plan document. A sponsor in pairing a defined benefit plan with a defined contribution plan may provide an integrated defined benefit, and a non-integrated defined benefit plan, as part of the paired plan arrangement only if both the integrated defined benefit plan and the nonintegrated defined benefit plan share the identical basic plan document.

05 SPECIAL PROVISIONS REQUIRED IN MASTER ANS PROTOTYPE PLANS--Because of the nature of the master and prototype program, this revenue procedure requires that special provisions be included in every master or prototype plan. Section 5 includes some of these requirements. Thus, for example, plans must contain language permitting the sponsor to amend the master or prototype plans. Furthermore, provisions must be included that assure compliance with section 411(a)(10) and (d)(6) of the Code, such as in the event an adopting employer amends the plan by revising the options selected in the adoption agreement. The plan language is required in order that the employer's plan may remain in the master and prototype program and still satisfy the requirements of sections 411(a)(10) and (d)(6).

Master and prototype plans may be adopted by an employer that has other plans covering the same employees. Such plans must be aggregated for purposes of section 415 of the Code. Aggregation under section 416 of the Code may also be required. It is impossible for sponsors of master or prototype plans to include form language that properly aggregates with any other plan of an adopting employer. Therefore, provision is made to enable adopting employers to add additional language to the master or prototype plan.

06 EXPERIMENTAL MASS SUBMITTER PROGRAM--In order to further reduce the paperwork burden, the Service is establishing an experimental mass submitter program. See section 17. This program offers reduced paperwork coupled with faster service. After the TEFRA submissions are substantially completed, the Service will evaluate the effects of this program and decide whether it should be established on a permanent basis.

SECTION 4. DEFINITIONS

01 MASTER PLAN--A "master plan" is a plan (including a plan covering self-employed individuals) that is made available by a "sponsoring organization" (see section 4.06) for adoption by employers and for which a single funding medium (for example, a trust or custodial account) is established, as part of the plan, for the joint use of all adopting employers. A master plan consists of two separate documents, an adoption agreement and a basic plan document (see sections 4.03 and 4.04).

02 PROTOTYPE PLAN--A "prototype plan" is a plan (including a plan covering self-employed individuals) which is made available by a sponsoring organization for adoption by employers and under which a separate funding medium is established for each adopting employer. A prototype plan consists of two separate documents, an adoption agreement and a basic plan document.

03 ADOPTION AGREEMENT--An "adoption agreement" is the portion of the plan containing all the options that may be selected by the adopting employer.

04 BASIC PLAN DOCUMENT--A "basic plan document" is the portion of the plan containing all the non-elective provisions applicable to all adopting employers. No options (including blanks to be completed) may be provided in the basic plan document.

05 OPINION LETTER--An "opinion letter" is a written statement issued by the National Office to a sponsoring organization pursuant to this revenue procedure as to the acceptability of the form of a master or prototype plan and any related trust or custodial account under sections 401, 403(a), and 501(a) of the Code.

06 SPONSORING ORGANIZATION--A "sponsoring organization" is a trade or professional organization having characteristics similar to those described in section 1.501(c)(6)-1 of the Income Tax Regulations, a bank (as defined in section 581 of the Code), an insured credit union (within the meaning of section 101(6) of the Federal Credit Union Act), an insurance company, a regulated investment company (as defined in section 851), an investment advisor that has an advisory contract with one or more regulated investment companies, or a principal underwriter that has a principal underwriting contract with one or more regulated investment companies.

07 STANDARDIZED FORM PLAN--A "standardized form plan" is a master or prototype plan which meets the following requirements:

1 The provisions governing eligibility and participation are such that the plan by its terms must cover all employees except those that may be excluded under section 410(a)(1) or (b)(3) of the Code. For example, a plan providing full and immediate vesting may exclude employees who do not have at least three years of service. However, the adoption agreement may provide options as to whether some or all of the employees described in sections 410(a)(1) and (b)(3) are to be excluded.

2 The eligibility requirements under the plan are not more favorable for officers, owners, or highly compensated employees than for other employees.

3 The vesting schedule in the plan provides vesting at a rate at least as favorable for every year as would be required by the schedules set forth in section 416(b)(1)(A) or (B) of the Code if the plan were top-heavy for every year after 1983.

4 The contributions (including forfeitures) provided under the plan (if a defined contribution plan other than a target benefit plan) or the benefits (if a defined benefit plan or a target benefit plan that complies with Rev. Rul. 76-464, 1976-2 C.B. 115) are a uniform percentage of total compensation. In making this determination, the plan may take into account benefits provided under the Social Security Act, provided the plan is properly integrated.

08 PAIRED PLANS--"Paired plans" are either a combination of two defined contribution standardized form plans or a combination of one or two defined contribution standardized form plans and one defined benefit standardized form plan (for example, a money purchase pension plan, a profit-sharing plan and a unit benefit or flat benefit pension plan), so designed that if any single plan, or combination of plans, is adopted by an employer, each plan by itself, or the plans together, will meet the anti-discrimination rules set forth in section 401(a)(4) of the Code, the contribution and benefit limitations set forth in section 415, and the top-heavy provisions set forth in section 416. Paired plans must have the same sponsoring organization.

SECTION 5. PROVISIONS REQUIRED IN EVERY MASTER OR PROTOTYPE PLAN

01 SPONSOR AMENDMENTS--Master or prototype plans must provide a procedure for sponsor amendment so that changes in the Code, regulations, revenue rulings or other statements published by the Internal Revenue Service, or corrections of prior approved plans may be applied on a group basis.

02 EMPLOYER AMENDMENTS--Except for amendments permitted under sections 5.04 and 5.08, an employer that amends any provison of an approved master or prototype plan including its adoption agreement (other than to change the choice of options, if the plan permits or contemplates such a change) or an employer that chooses to discontinue participation in a plan as amended by its sponsoring organization and does not substitute another approved master or prototype plan is considered to have adopted an individually designed plan. The procedures stated in Rev. Proc. 80-30 and Notice 83-12, 1983-31 I.R.B. 11, relating to the issuance of determination letters for individually designed plans, will then apply to the plan as adopted by the employer.

03 ANTI-CUTBACK PROVISIONS--Master or prototype plans must specifically provide for the protections of sections 411(a)(10) and (d)(6) of the Code in the event that the employer amends the plan in any manner such as revising the options selected on the adoption agreement or adopting a new master or prototype plan. In the case of a master or prototype plan that does not contain vesting for all years at least as favorable to participants as that provided in section 416(b) in the event a plan is not top-heavy, such plan must specifically provide that the vesting that occurs while the plan is top-heavy will not be cut back if the plan ceases to be top-heavy.

04 ADOPTING EMPLOYER MODIFICATION TO SATISFY SECTIONS 415 AND 416--Master or prototype plans must provide that the plan provisions may be amended by overriding plan language completed by the employer in the adoption agreement when such language is necessary to satisfy section 415 or 416 of the Code because of the required aggregation of multiple plans under these sections. (In the event of such an amendment the adopting employer must obtain a determination letter in order to continue reliance on the plan's qualified status.)

05 DEFINED CONTRIBUTION SECTION 415 AGGREGATION--Plan language must be incorporated that aggregates all defined contribution master and prototype plans to satisfy section 415(c) of the Code. Acceptable language is provided in the Service's Listng of Required Modifications and may be obtained by writing to the Commissioner of Internal Revenue, Washington, DC 20224, Attention OP:E:EP:RQ:1.

06 TOP-HEAVY REQUIREMENTS--Except to the extent described in section 7.03 relating to paired plans, each plan must either provide that all the additional requirements applicable to top-heavy plans (described in section 416 of the Code) apply at all times or provide that such requirements apply automatically if the plan is top-heavy regardless of how the adoption agreement is completed. In any case where the latter option is chosen, all the requirements for determining whether the plan is top-heavy must be included in the plan. See Questions T-25 and T-26 in section 1.416-1 of the Proposed Income Tax Regulations, 48 F.R. 10868, 1983-1 C.B. 832, 840.

07 ADDITIONAL TOP-HEAVY MINIMUMS TO SATISFY SECTION 415(e)--Each plan must provide automatically or by optional provisions the additional minimums described in section 416(h)(2)(A) of the Code.

08 PLAN LANGUAGE REQUIRED IN MONEY PURCHASE PLANS RECEIVING WAIVERS--Each money purchase master or prototype plan (including target benefit plans) must provide either standard language (obtainable as described in section 5.05) that satisfies Rev. Rul. 78-223, 1978-1 C.B. 125, in the event of a waiver of the minimum funding requirements or that an employer may amend the plan by adding overriding plan provisons in the adoption agreement in the event of a waiver of the minimum funding requirement under section 412(d) of the Code.

09 PROVISION IN ADOPTION AGREEMENT ON EXTENT OF RELIANCE-- In order to avoid unnecessary confusion as to the scope of an opinion letter, sponsoring organizations must include in the adoption agreement of all master or prototype plans (other than standardized form and paired plans), in close proximity to the signature blank, a statement that adopting employers may not rely on an opinion letter issued by the National Office with respect to the qualification of that plan and should apply to the appropriate key district for a determination letter in order to obtain reliance. Standardized form and paired plans must also include a similar statement in the adoption agreement that the adopting employer may not rely on the opinion letter issued by the National Office and should apply for a determination letter if the employer maintains or later adopts any plan in addition to the standardized form plan or paired plans. The adoption agreement must state that it is to be used with one and only one specific basic plan document.

10 DEFINITION OF EMPLOYEE/SECTIONS 414(b), (c), (m), AND (n)-- Each master or prototype plan must include a definition of employee as any employee of the employer maintaining the plan or of any other employer aggregated under section 414(b), (c), or (m) of the Code. The definition of employee shall also include any individual deemed under section 414(n) of the Code to be an employee of any employer described in the previous sentence.

11 DEFINITION OF SERVICE/SECTIONS 414(b), (c), (m) AND (n)-- Each master or prototype plan must specifically credit all service with any employer aggregated under section 414(b), (c), or (m) of the Code as service with the employer maintaining the plan. In addition, in the case of an individual deemed under section 414(n) of the Code to be the employee of any employer described in the previous sentence, service with such employer must be credited to such individual.

12 SPECIFIC NON-TEFRA REQUIREMENTS--In addition to other substantive requirements, master or prototype plans must comply with the requirements of the Revenue Rulings and Notices listed below:

1 Rev. Rul. 79-90, 1979-1 C.B. 155 (statement in plan of basis for determining actuarial equivalence),

2 Rev. Rul. 81-211, 1981-2 C.B. 98 (requiring full vesting at normal retirement age rather than at normal retirement date),

3 Notice 82-7, 1982-1 C.B. 357 (amendments to comply with the requirements under section 414(m) of the Code),

4 Notice 82-9, 1982-1 C.B. 358 (amendments to comply with final regulations under section 415 of the Code prior to amendment by TEFRA), and

5 Notice 82-23, 1982-2 C.B. 752 (amendments to comply with final regulations on suspension of benefits).

SECTION 6. STANDARDIZED FORM PLANS

01 RELIANCE--An employer adopting a standardized form plan or paired plans has reliance, except as provided in section 6.02, if the provisons of section 15.011 of Rev. Proc. 80-30, as modified by section 18.02 of this revenue procedure, are satisfied.

02 NON-RELIANCE BY EMPLOYER MAINTAINING MORE THAN ONE PLAN--Except in the case of one combination of paired plans, an employer may not rely on opinion letters for standardized form plans without obtaining a determination letter if the employer maintains at any time, or has maintained at any time, any other plan, including a standardized form plan, that was qualified or determined to be qualified covering some of the same participants.

03 SHARING BASIC PLAN DOCUMENT BY STANDARDIZED AND NON-STANDARDIZED PLANS--A sponsor may establish a basic plan document that applies to both a standardized form plan and a plan that is not a standardized form plan. Such plans may differ only by the different adoption agreements. For example, the adoption agreement for the plan that is not a standardized form plan may have additional coverage options.

SECTION 7. SPECIAL REQUIREMENTS FOR PAIRED PLANS

01 LIMITS OF SECTION 415(e) MUST BE PROVIDED IN DEFINED BENEFIT PLAN ONLY--The benefits under a defined benefit plan in a combination of paired plans must be limited by the requirements of section 415(e) of the Code relating to the aggregation of defined benefit and defined contribution plans. Adjustments to satisfy the requirements of section 415(e) of the Code relating to the aggregation of defined benefit and defined contribution plans. Adjustments to satisfy the requirements of section 415(e) may only be provided in the defined benefit plan with respect to benefits thereunder.

02 SECTION 416(h) ADJUSTMENT TO SECTION 415(e) LIMITS-- Paired plans that include a defined benefit plan must compute the denominators of defined benefit and defined contribution fractions in a manner satisfying section 416(h)(1) of the Code unless the requirements of section 416(h)(2) are satisfied. Paired plans providing the additional section 415(e) limits must provide, regardless of how the adoption agreement is completed, the additional top-heavy minimums described in section 416(h) (2)(A) and provide that the higher section 415(e) limits will not apply if the plan is super top-heavy as described in question T-24 in section 1.416-1 of the Proposed Income Tax Regulations, 48 F.R. 10868, 1983-1 C.B. 832, 838. In testing for super top-heavy, all the requirements of questions T-25 and T-26 in section 1.416-1 of the proposed regulations must be included in the plan.

03 COORDINATION OF MINIMUM BENEFITS AND CONTRIBUTIONS UNDER TOP-HEAVY PLANS--Paired plans, subject to the limits of section 415 of the Code, may provide duplication of the minimum benefits and contributions in each of the plans being paired. The paired plans (when they become top-heavy) may, however, provide minimum contributions and benefits that are not duplicative. In that case, only two methods may be used:

1 The defined benefit plan must provide that 2 percent (3 percent if the additional section 415(e) limit is used) defined benefit minimum for all its participants. The defined contribution plan must provide the defined contribution minimum for participants in the defined contribution plan who are not participants in the paired defined benefit plan, or

2 The defined contribution plan must provide a contribution not less than 5 percent (71/2 percent if the additional section 415(e) limit is used) with respect to any participant who is a participant who is a participant in a paired defined benefit plan and a contribution not less than 3 percent (4 percent if the additional section 415(e) limit is used) for any participant who is not a participant in the paired defined benefit plan. The defined benefit plan must provide the 2 percent minimum (3 percent if the additional section 415(e) limit is used) with respect to any participant who is not in the defined contribution plan or who does not receive the entire defined contribution allocation.

04 PAIRING PROVISIONS MUST BE IN THE BASIC PLAN DOCUMENT-- In the case of paired plans, all provisions necessary to coordinate the plans must be set forth in the basic plan document and not in the adoption agreement.

05 SPONSOR LIMITED TO ONE SET OF PAIRED BASIC PLAN DOCUMENTS--A sponsor may not adopt more than one set of paired basic plan documents. Such set is limited to two different basic plan documents: one for defined benefit and one for defined contribution. The pairing of defined contribution plans requires only one basic plan document such as a profit-sharing plan and a money purchase plan containing the identical basic plan document and two different adoption agreements. A sponsor may provide a pairing of defined benefit and defined contribution plans in such a manner that with two different basic plan documents and three adoption agreements, an adopting employer may adopt a profit-sharing plan, a money purchase plan, and a defined benefit plan.

SECTION 8. OPINION LETTERS-SCOPE

01 ISSUANCE ONLY TO APPROPRIATE SPONSORS--Opinion letters will be issued only to sponsoring organizations and do not constitute rulings or determinations as to either the qualification of the plans as adopted by particular employers or, in the case of prototype plans, the exempt status of related trusts or custodial accounts.

02 NONAPPLICABILITY OF THIS PROCEDURE TO IRAs AND SEPs--Opinion letters will not be issued under this revenue procedure for prototype plans intended to meet the requirements for individual savings programs or simplified employee pension programs under section 408 of the Code (see Rev. Proc. 75-6, 1975-1 C.B. 646, Rev. Proc. 76-32, 1976-2 C.B. 634, and Rev. Proc. 80-17, 1980-1 C.B. 621).

03 AREAS NOT COVERED BY OPINION LETTERS--Opinion letters will not be issued for:

1 Collectively-bargained plans (section 413(b) of the Code);

2 Stock bonus plans;

3 Plans containing a cash or deferred arrangement as described in section 401(k) of the Code;

4 Bond purchase plans;

5 Employee stock ownership plans (see Rev. Proc. 75-48, 1975-2 C.B. 583);

6 Pooled fund arrangements contemplated by Rev. Rul. 81-100, 1981-1 C.B. 326;

7 Annuity contracts under section 403(b) of the Code;

8 Pattern plans (see Rev. Proc. 76-15, 1976-1 C.B. 553);

9 Field prototype plans (see Rev. Proc. 77-23, 1977-2 C.B. 530);

10 Defined contribution plans (except for target benefit plans) under which the test for prohibited discrimination under section 401(a)(4) of the Code is made by reference to benefits rather than contributions;

11 Plans that involve integration with Social Security benefits except for plans that define annual compensation to be all of each employee's compensation (such plans may, however, limit the dollar amount of compensation that will be considered) that would be subject to taxation under section 3101(a) of the Code without the dollar limitation of section 3121(a)(1);

12 Plan described in section 414(k) of the Code (relating to a defined benefit plan which provides a benefit derived from employer contributions which is based partly on the balance of the separate account of a participant);

13 Target benefit plans that integrate with Social Security benefits using the offset method of integration;

14 Profit-sharing plans that allocate contributions or forfeitures to the account of any participant in any manner other than on the basis of compensation;

15 Governmental plans described in section 414(d) of the Code;

16 Church plans described in section 414(e) of the Code that have not made the election provided by section 410(d).

SECTION 9. OPINION LETTERS -- INSTRUCTIONS TO SPONSORING ORGANIZATIONS

01 NATIONAL OFFICE ISSUES OPINION LETTERS--The National Office will, upon the request of a sponsoring organization, issue an opinion letter as to the acceptability under section 401 of the Code of the form of a master or prototype plan and any related trust or custodial account.

02 FORMS AND ADDRESS FOR REQUESTING OPINION LETTERS--A request for an opinion letter relating to a master or prototype plan must be submitted on the current version (revision of February 1984 or more current date when subsequently revised) of Form 4461, Application for Approval of Master or Prototype Defined Contribution Plan, or Form 4461-A, Application for Approval of Master or Prototype Defined Benefit Plan, as appropriate, regardless of whether the plan is designed to include self-employed individuals. The request is to be filed with the Commissioner of Internal Revenue, Washington, D.C. 20224, Attention: OP:E:EP:RQ:E.

03 REPLACEMENT OF PLANS--If the plan is intended to replace one or more other plans of the sponsoring organization, the sponsoring organization must identify the replaced plan(s) by the file folder number(s).

04 SEPARATE MASTER OR PROTOTYPE PLAN REQUIRED FOR DIFFERENT CATEGORIES OF PLANS--An application for a master or prototype plan shall not contain any combination of profit-sharing, money purchase (other than target benefit), target benefit, non-integrated defined benefit, or integrated defined benefit plan features. However, separate defined contribution plans may have the same basic plan document. Similarly, separate integrated and non-integrated defined benefit plans may have the same basic plan document. In the case where plans share the same basic plan document, the provisions of such basic plan document must be word for word identical.

05 ADDITIONAL INFORMATION MAY BE REQUESTED--The Service may, at its discretion, require any additional information that it deems necessary.

06 INADEQUATE SUBMISSIONS--The Service will return, without further action, plans which are not in substantial compliance with the qualification requirements or plans that are so deficient that they cannot be reviewed in a reasonable amount of time. A plan will not be considered to be in substantial compliance if, for example, it omits any of the TEFRA requirements set forth below, or merely incorporates these requirements by reference to the applicable Code section. The Service will not consider these plans until after they are revised, and they will be treated as new requests as of the date they are resubmitted. The following are some examples of TEFRA requirements the omission of which will cause a plan to be regarded as not being in substantial compliance:

1 Section 401(a)(9) of the Code, as amended by section 242 of TEFRA, relating to required distributions from qualified plans (see Notice 83-23, 1983-49 I.R.B. 15).

2 Section 415 of the Code, as amended by section 235 of TEFRA, relating to lower contribution and benefit limits for qualified plans. (See Notice 83-10, 1983-1 C.B. 536, for guidelines in meeting these requirements.)

3 Section 416 of the Code, as added by section 240 of TEFRA, containing special rules for top-heavy plans. (See section 1.416-1 of the Proposed Income Tax Regulations, 48 F.R. 10868, 1983-1 C.B. 832,833, for guidance in meeting the top-heavy requirements.)

4 If the plan is an integrated defined contribution plan, section 401(1) of the Code, as added by section 249 of TEFRA, relating to non-discriminatory coordination with Social Security benefits. (See Rev. Rul. 83-110, 1983-31 I.R.B. 5, for guidance in meeting this requirement.)

5 Section 414(m) of the Code, including section 414(m)(5), as added by section 236 of TEFRA.

6 Section 414(n) of the Code, as added by section 248 of TEFRA.

7 Section 401(c) and (d) of the Code, as amended by sections 237 and 238 of TEFRA, unless the plan precludes participation by self-employed individuals.

07 MATERIAL FURNISHED TO ADOPTING EMPLOYERS--A sponsoring organization must furnish each adopting employer with a copy of the approved plan, copies of any subsequent amendments, and the most recently issued Internal Revenue Service opinion letter.

08 NONIDENTIFICATION OF QUESTIONABLE ISSUES MAY CAUSE DELAY--If the plan document submitted as part of an opinion letter request contains a provision that gives rise to an issue for which contrary authorities exist, failure to disclose and distinguish significant contrary authorities may result in requests for additional information, which will delay action on the request (see section 7.06 of Rev. Proc. 83-36).

09 MATERIAL FURNISHED TO KEY DISTRICT OFFICES--A copy of the approved master or prototype plan and the Internal Revenue Service opinion letter must be furnished by the sponsoring organization to each Internal Revenue Service key district office in whose jurisdiction there are employers who adopt the plan. The sponsoring organization must also furnish key district offices with a copy of all amendments subsequently approved as to form by the National Office.

SECTION 10. AMENDMENTS

01 OPINION LETTERS FOR SPONSOR AMENDMENTS--A sponsoring organization may amend its previously approved plan (including any related trust or custodial account) and the National Office will entertain a request for a written opinion as to the acceptability, for purposes of sections 401, 403, and 501(a) of the Code, of the form of the plan as amended. If the plan is being amended for the first time to comply with TEFRA, the procedures set forth in section 9 must be followed. Otherwise, the sponsoring organization must submit Form 4461 or Form 4461-A, as applicable to the National Office, together with a copy of the amendment(s), and a cover letter summarizing the changes to the plan effected by such amendment(s).

02 NO OPINION LETTERS FOR CERTAIN AMENDMENTS--No opinion letter will be issued regarding the effect of amendment solely covering the following:

1 Amendments to conform a plan to the requirements of section 402(a) of Title I of the Employee Retirement Income Security Act of 1974 (ERISA), Pub. L. 93-406, 1974-3 C.B. 1, relating to named fiduciaries.

2 Amendments to conform a plan to requirements of section 503 of ERISA, relating to claims procedures.

3 Amendments that merely adjust the maximum limitations under section 415 of the Code to reflect annual cost-of-living increases, other than amendments that add an automatic cost-of-living adjustment provision to the plan. Any amendment noted above will not affect the status of a favorable opinion letter previously issued with respect to a plan. The Service will not accept any requests for opinion letters regarding such amendments.

03 REQUIRED PLAN RESTATEMENT--No more than four consecutive amendments may be submitted without restating the plan. Furthermore, amendments to initially comply with TEFRA must restate the plan. The Service may, at its discretion, require plan restatement at any time that it deems necessary.

SECTION 11. DETERMINATION LETTER PROCEDURES

Except as provided in section 6, approval by the Service of the form of a master or prototype plan under this revenue procedure does not constitute a determination that an employer who adopts the plan will have a qualified plan. Therefore, such an adopting employer should request a determination letter in accordance with the procedures set forth in Rev. Proc. 80-30.

SECTION 12. EFFECT OF PRIOR SERVICE APPROVAL

01 CONTINUED RELIANCE/PROPER AMENDMENT BY SPONSOR--The reliance obtained by prior adopters of master or prototype plans for which favorable opinion or determination letters were received under the procedures in effect before the effective date of this revenue procedure will continue for plan years beginning after December 31, 1983, only if: (1) the sponsoring organization submits the plan or a replacement plan to the Service with the provisions required by section 5 on or before December 31, 1984, and (2) unless subject to section 12.03, the employer adopts the amendments or replacement plan and, except as provided in section 6, requests a determination letter on or before the later of (a) the last day of the twelfth calendar month from the time the Service issues an opinion letter with respect to such plan, or (b) the end of any remedial amendment period provided by regulations under section 401(b) of the Code. Such amendments must be effective as of the beginning of the first plan year commencing after December 31, 1983, except for amendments described in section 5.12, which must be effective as provided in the respective revenue rulings and notices.

02 LISTS OF PLANS TO BE PUBLISHED BY THE SERVICE--The Service will publish in the Internal Revenue Bulletin

1 Periodically, after June 30, 1984, a list of the sponsoring organizations and their related plans which have been submitted in accordance with this procedure, and

2 Quarterly, after the first list is published, the list of sponsoring organizations and their related plans (included in the list in paragraph 1) which (a) receive favorable opinion letters (and the respective date issued), (b) receive unfavorable opinion letters, or (c) withdraw their requests for opinion letters.

03 CONTINUED RELIANCE/NO PROPER AMENDMENT BY SPONSOR-- A previously adopting employer whose master or prototype plan is not included in the list described in subsection .021 that contains those plans that have been properly submitted by December 31, 1984, or whose plan is included in one of the lists described in subsection 0.022(b) or (c) may either (a) amend its plan to satisfy the requirements of section 5 in which case the plan will be treated as individually designed, or (b) adopt another master or prototype plan with TEFRA amendments which has been the subject of a favorable opinion letter from the Service under this revenue procedure and, if appropriate, request a determination letter with respect to that plan. In either case, the adoption date shall not be later than the last day of the month which is six months after the month of publication of such list.

SECTION 13. APPROVED PLANS--MAINTENANCE OF APPROVED STATUS

01 REVOCATION OF OPINION LETTER BY THE SERVICE--An opinion letter found to be in error or not in accord with the current views of the Service may be revoked. Revocation may be effected by a notice to the sponsoring organization to which the letter was originally issued, or by a regulation, revenue ruling or other statement published in the Internal Revenue Bulletin.

02 SUBSEQUENT REQUIRED AMENDMENTS--An approved master or prototype plan must be amended to retain its approved status if any provisions therein fail to meet the requirements of law, regulations, or other rules and guidelines affecting qualification that become effective subsequent to the issuance of an opinion letter.

03 AMENDMENTS FOLLOWING REVENUE RULINGS--An opinion letter will not be adversely affected by the publication of a revenue ruling if an amendment conforming the plan to the requirement of the revenue ruling is made by the sponsoring organization within one year after publication of the revenue ruling in the Internal Revenue Bulletin to be effective for all adopting employers for their plan years beginning within such one year period.

SECTION 14. WITHDRAWAL OF REQUESTS

01 NOTIFICATIONS AND EFFECT--A sponsoring organization may withdraw its request for an opinion letter at any time prior to the issuance of such letter by notifying the National Office in writing of such withdrawal. The sponsoring organization must also notify each employer who adopted the plan that the request has been withdrawn. Such an employer will be deemed to have an individually designed plan to which Rev. Proc. 80-30 applies.

02 SERVICE RETAINS INFORMATION--Even though a request is withdrawn, the National Office will retain all correspondence and documents associated with that request and will not return them to the sponsoring organization. The National Office may furnish its views concerning the qualified status of the plan to District Directors who have or will have audit jurisdiction of the returns of any employers who have adopted the plan.

SECTION 15. ABANDONED PLANS

01 NOTIFICATION TO THE SERVICE--A sponsoring organization should notify the National Office in writing of an approved master or prototype plan that is no longer used by any employer and that the sponsoring organization no longer intends to offer for adoption. Such written notification should be filed with the Commissioner of the Internal Revenue, Washington, D.C. 20224, Attention: OP:E:EP:RQ:E, and should refer to the file folder number appearing on the latest opinion letter issued.

02 NOTIFICATION OF EMPLOYERS--A sponsoring organization that intends to abandon an approved master or prototype plan that is in use by any adopting employer must inform each adopting employer that the form of the plan has been terminated and that the employer may not continue to rely on the plan's opinion letter. After so informing all adopting employers, the sponsoring organization should notify the National Office in accordance with the subsection .01 above.

SECTION 16. SPECIAL PROVISIONS RELATED TO TEFRA

01 DELAYED SUBMISSIONS--No applications for approval of master and prototype plans under this revenue procedure may be submitted prior to the expiration of 90 days after the effective date of this revenue procedure. Any such application will be returned.

02 NONPROCESSING OF NON-TEFRA MASTER AND PROTOTYPE PLANS--Effective immediately no master or prototype (new plan or amendment) will be processed if the new plan or amendment does not satisfy TEFRA. Furthermore, all pending cases (both new plans and amendments) will be returned.

SECTION 17. EXPERIMENTAL ONE-TIME MASS SUBMITTER PROGRAM

01 OPINION LETTERS ISSUED TO MASS SUBMITTERS--Notwithstanding anything to the contrary, opinion letters will be issued to any entity whether or not such entity is a sponsoring organization if such entity can establish that there are at least 10 sponsoring organizations who will sponsor the identical master or prototype plans. The list of sponsoring organizations must be included in the submission. Such opinion letters will only apply to the mass submitter and may be made available by the mass submitter to an adopting employer only if the mass submitter is also a sponsoring organization defined in section 4.06. All other sponsoring organizations must obtain an opinion letter.

02 REDUCED PROCEDURAL REQUIREMENTS FOR SPONSORING ORGANIZATIONS WHICH USE MASS SUBMITTER PLANS--A sponsoring organization of a master or prototype plan of a mass submitter must obtain an opinion letter. The request for the opinion letter must be submitted by the mass submitter on behalf of the sponsoring organization and must contain a declaration by the mass submitter under penalty of perjury that the sponsoring organization has adopted a particular, word for word identical, master or prototype plan of the mass submitter, which plan must be identified by the letter serial number and the date of the opinion letter issued to the mass submitter with respect to that plan. If the sponsoring organization is sponsoring the identical plan, a copy of the plan need not be submitted. However, the mass submitter on behalf of the sponsoring organization must complete Part I, Items 1-17, of the forms described in section 9.02. Upon receipt of the request for an opinion letter, described above, the Service will, as soon as clerically feasible, issue an opinion letter to the sponsoring organization. After 10 sponsoring organizations have adopted the identical plan, other sponsoring organizations may adopt the plan with minor modifications. In that case the request must contain, in addition to the material described above, a copy of the plan for which that mass submitter received the opinion letter with the minor modifications inserted in a manner that is easily identifiable as well as a statement indicating the purpose and effect of each change. The mass submitter must submit the request on behalf of the sponsoring organization except for the delineated changes is word for word identical to the plan upon which the mass submitter received a favorable opinion letter. The Service will review the changes on a priority basis and issue an opinion letter to the sponsoring organization as soon as possible.

03 EXPEDITIOUS PROCESSING ACCORDED MASS SUBMITTER PLANS-- Mass submitter plans, including the adoption of approved mass submitter plans by sponsoring organizations, will be accorded more expeditious processing than master and prototype plans submitted by non-mass submitters.

04 APPLICABILITY--This section is not applicable to restatements or replacements of plans for which a favorable opinion letter has been issued in accordance with this procedure.

SECTION 18. EFFECT ON OTHER DOCUMENTS

01 Rev. Proc. 80-29 is hereby superseded.

02 Section 15.01 of Rev. Proc. 80-30 is modified by renumbering paragraph 4 as 2 after replacing paragraphs 1, 2 and 3 with the following:

1 A standardized form plan or paired plans as defined in sections 4.07 and 4.08 of Rev. Proc. 84-23 provided that:

(a) The sponsoring organization of such plan or plans has a currently valid favorable opinion letter from the National Office,

(b) The employer has followed the terms of the plan(s), and the coverage and contributions or benefits under the plan(s) are not more favorable for officers, owners or highly compensated employees than for other employees,

(c) The employer has properly notified all interested parties of the adoption of the plan(s) in accordance with sections 7 and 8, above, and

(d) The employer has not received within 120 days after the date of adoption of the plan(s), notice from the Service that the plan(s) will not be treated as qualified pursuant to this subsection. (In this regard, see section 4.14, above.)

SECTION 19. EFFECTIVE DATE

This revenue procedure is effective March 19, 1984, the date it is published in the Internal Revenue Bulletin.