Notification of significant benefit accrual reduction.
For plan amendments taking effect after June 6, 2001, the employer or the plan will have to pay an excise tax if both the following apply.
- A defined benefit plan or money purchase pension plan is amended to provide for a significant reduction in the rate of future benefit
accrual.
- The plan administrator fails to notify each affected participant and alternate payee, and each employee organization representing them, of
the reduction in writing.
For more information, see Notification of Significant Benefit Accrual Reduction in chapter 4.
Third-party authorization.
You can check a box and authorize the IRS to discuss your Form 1040 with a third party. If you check the "Yes" box above the signature area of
your return, the IRS can call the third party you designate to ask any questions that may arise during the processing of your return. See your income
tax package for details.
New forms for determination letter requests.
The IRS has issued the following revised forms for filing requests for determination letters on qualified employee benefit plans.
- Form 5300, Application for Determination for Employee Benefit Plan (including collectively bargained plans formerly filed on Form 5303)
(Rev. September 2001).
- Schedule Q (Form 5300), Elective Determination Requests (Rev. August 2001).
- Form 5307, Application for Determination for Adopters of Master or Proto-type or Volume Submitter Plans (Rev. September
2001).
- Form 6406, Short Form Application for Determination for Minor Amendment of Employee Benefit Plan (Rev. September 2001).
See chapter 6 for information on how to get forms.
New Form 5306-A.
The IRS has issued new Form 5306-A, Application for Approval of Prototype Simplified Employee Pension (SEP) or Savings Incentive Match
Plan for Employees of Small Employers (SIMPLE IRA Plan), to be used by sponsors of prototype SEPs and prototype SIMPLE IRA plans to apply for
opinion letters on these documents. The new form replaces Form 5306-SEP. See chapter 6 for information on how to get forms.
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