Rev. Proc. 71-31

Section 1. Purpose.

The purpose of this Revenue Procedure is to state the procedure of the Internal Revenue Service with respect to the issuance of determination letters on amendments to qualified money-purchase pension plans, profit-sharing plans, and stock bonus plans, designed to conform such plans to the requirements of section 1.401-3(e) of the Income Tax Regulations by the mere substitution of figures specifying the rate of employer contributions, or the integration level, or both.

Sec. 2. Background.

Section 1.401-3(e) of the Income Tax Regulations, as amended by T.D. 7134, page 200, establishes the general basis for the integration of pension, annuity, profit-sharing and stock bonus plans with old-age, survivors, and disability insurance benefits provided under the Social Security Act. Revenue Ruling 71-446, page 8, this Bulletin, provides additional rules for the integration of such plans with such benefits in accordance with section 1.401-3(e)(2)(v) of the regulations.

Sec. 3. Money-Purchase Pension, Profit-Sharing and Stock Bonus Plans.

Certain previously qualified money-purchase pension, profit-sharing, and stock bonus plans will need to be amended to conform to the provisions of section 1.401-3(e) of the regulations and Revenue Ruling 71-446 or as either may be subsequently amended. Such amendments may take the form of the mere substitution of figures specifying the rate of employer contributions, or the integration level (as defined in Rev. Rul. 71-446), or both. In the case where such substitution of figures constitutes the only change made to the plan to conform to the amended integration requirements, the Service will not issue a determination letter with respect to such amendment.

Sec. 4. Effect on Other Documents.

Section 3.0111 of Revenue Procedure 69-6, C.B. 1969-1, 396, which lists specific questions and problems related to section 401 of the Internal Revenue Code of 1954 with respect to which rulings or determination letters will not be issued by the Internal Revenue Service is hereby amended by the addition of the following item:

(e) Amendments to qualified money-purchase pension plans, profit-sharing plans, and stock bonus plans, that only conform the plan to section 1.401-3(e) of the Income Tax Regulations, as amended from time to time, by the mere substitution of figures specifying the rate of employer contributions or the integration level, or both.