A pre-approved retirement plan is a plan sold to employers by a document provider such as a financial institution or benefits practitioner. The document provider is the “pre-approved plan provider.” The document provider requests IRS approval (“pre-approval”) of a defined contribution or defined benefit plan document as meeting the requirements of Internal Revenue Code Sections 401, 403(a) or 403(b). The pre-approved plan provider then makes the IRS-approved plan available to adopting employers. The IRS also issues opinion letters for prototype IRAs.
- New Pre-Approved Retirement Plan Opinion Letter Program
- Types of pre-approved retirement plans - Summary of pre-approved plans and plan providers
- Find a pre-approved plan (current plans plus older plan documents)
For employers
- Rules for adopting employers - when and how to adopt a pre-approved plan
- Tips for employers using pre-approved plans
For document providers
How to apply - Procedures and forms
- Submission procedures for pre-approved plans (not including 403(b))
- 403(b) pre-approved plans
- Prototype and model IRAs
- FAQs on opinion and advisory letters for pre-approved retirement plans
- Tips to avoid processing delays with your determination letter application
When to apply
- 6-year remedial amendment cycle for pre-approved plans - Submit your application for a new or amended plan in the first year of the 6-year cycle
- Explanation of the system of remedial amendment cycles
Plan language resources
- Amend or update a plan - Cumulative lists, listings of required modifications (LRM), quality assurance bulletins (QABs), etc.
Providers of a pre-approved plan
- Pre-approved plan document providers - responsibilities and tips
- Discontinued pre-approved plans
- Listings of Required Modifications (LRMs)
The IRS posted LRMs for pre-approved defined contribution plans at the listing of required modifications (LRMs) in January 2024. Plan document providers applying for IRS opinion letters during the fourth defined contribution pre-approved plan cycle (February 1, 2024 – January 31, 2025) may use the revised LRMs to draft or amend their plans. No additional amendments will be made to the defined contribution plan LRMs until the beginning of the fifth cycle submission period.
LRMs contain model plan language:
- for laws effective during the fourth remedial amendment cycle
- that reflects qualification requirements and guidance in the 2023 Cumulative List (Notice 2024-3).
The IRS pre-approved plan program changed, as announced in Revenue Procedure 2023-37. For example:
- Two types of pre-approved plans – the IRS recognizes standardized and non-standardized plans. Standardized plans are safe harbor plans, whereas non-standardized plans adopt the flexibility of plans under the predecessor Volume Submitter program.
- Separate trust document – trust and custodial agreements must be segregated, and the plan must contain a provision that its terms will govern in the case of a conflict (see Defined Contribution LRM #81). The IRS does not review trust documents.
Related
- Additional resources for determination, opinion and advisory letters
- FAQs on determination, opinion or advisory letter issues
- Revenue Procedure 2015-36 and Revenue Procedure 2017-41 - procedures for pre-approved plans