New Guidance
IRS Extends Gust Deadline For Some, CRA 2000 Amendment Deadline For All
The IRS Released Revenue Procedure 2002-73 and extended the GUST deadline for certain master and prototype and volume submitter plans (not individually designed plans) from December 31, 2002, until the later of September 30, 2003 or the last day of the 12th month beginning after the date of the latest determination letter issued to the master and prototype plan sponsor or volume submitter practitioner. Revenue Procedure 2002-73 also extends the deadline for adoption of certain model amendments by master and prototype and volume submitter plans. These plans now have until the later of the end of the 2002 plan year or the end of the GUST remedial amendment period to adopt the 1994 GAR mortality table. The date for adopting the model amendment in Revenue Procedure 2002-27 (dealing with the inclusion of “deemed” cafeteria plan deferrals) is the later of the end of the GUST remedial amendment period or the later of the end of the 2002 plan year or the end of the plan year in
which the change is first effective). These deadline extensions are solely for the master and prototype and volume submitter plans qualifying for the extended GUST deadline. However, the Revenue Procedure also extends the deadline for adoption of the Community Renewal Tax Relief Act of 2000 (“CRA 2000”) amendment for all plans, including individually designed plans. The CRA 2000 amendment deals with the inclusion of qualified transportation fringe benefits in the plan definition of compensation (model amendment found in Notice 2001-37) and is extended to the latest of (1) the end of the GUST remedial amendment period, (2) the last day of the first plan year beginning in 2002, or (3) June 30, 2003. Important note: the deadline to adopt the EGTRRA good faith amendment is tied to the GUST remedial amendment period. However, in order to avoid any IRC §411(d)(6) anti-cutback issues, plans should still have their EGTRRA good faith amendments in place by the end of the 2002 plan year.
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