The April 30, 2016 deadline for pre-approved plan adopters to sign a restated plan that complies with the Pension Protection Act passed. After the first 6-year cycle for pre-approved plans ended on April 30, 2010, we received many Voluntary Correction Program (VCP) submissions from plan sponsors who didn’t sign a restated plan by the deadline. While plan sponsors may continue to make VCP submissions for correcting a failure to restate their plans by the deadline, the IRS invites financial institutions or other service providers to submit proposals for umbrella closing agreements to correct the same failure on a larger scale by addressing employers affected by the failure as a group. Umbrella closing agreement parameters: Minimum of 20 plans covered by closing agreement $10,000 fee for the first 20 plans plus $250 for each additional plan. Maximum amount: $50,000 (similar to the Group Submission fee arrangement under VCP) Note: Don’t include the fee with your request. The closing agreement should include plans maintained by eligible participating employers for whom the service provider can certify that they have a record of their: Consent to participate - affirmative agreement to participate in the closing agreement program Prior document compliance - adoption of pre-approved defined contribution plans for the Economic Growth Tax Relief Reconciliation Act of 2001 (EGTRRA) by the required deadline stated in Notice 2004-84; or if late, IRS compliance statements to correct for the late adoption of EGTRRA documents Correction of the document issue - execution of the PPA restatement using the service provider’s pre-approved document Financial institutions or other service providers that apply and are approved will have until the later of 120 days from the closing agreement execution date to: provide a final list of employers covered by the closing agreement pay additional fees (if applicable). You can send a letter outlining your proposal to: Internal Revenue Service TE/GE:EP:VC Group 7554 Request for Voluntary Closing Agreement 9350 Flair Drive, 3rd Floor El Monte, CA 91731 Call Stephanie Bennett at 818-440-0221 or Thelma Diaz at 626-927-1415 if you have questions. Related Employee Plans Voluntary Closing Agreements
