Deadlines Approaching for Qualified Prototype and Volume Submitter Plans
Deadline to Adopt Updated Plan Documents
Reliance on Prototype or Volume Submitter Provider's IRS Letter
One of the advantages of adopting a prototype or volume submitter plan document is that in many cases, the adopting employer can rely on the provider's IRS opinion letter as to the plan's qualified status instead of obtaining its own IRS determination letter.
In general, an employer that adopts any prototype or volume submitter plan document can rely on the prototype provider's IRS opinion letter regarding the plan language, if the employer has chosen only those design options that are available under the plan.
An employer that adopts a standardized prototype document generally can also rely on the prototype provider’s IRS opinion letter regarding the plan operation, if the employer follows the terms of the plan. There are, however, circumstances in which an employer that adopts a standardized prototype document cannot rely on the provider’s letter with respect to certain operational requirements. For example, if the employer maintains or maintained another qualified plan covering some of the same participants, it cannot rely on the provider’s letter with respect to meeting the limitations on annual additions or the top heavy requirements.