Cycle B Determination Letter Filings Due January 31, 2013

As noted in last month's Employee Benefits Update, the Remedial Amendment Period Cycle B individually designed plans must be submitted for a favorable Internal Revenue Service (IRS) determination letter no later than January 31, 2013. Cycle B plans include those sponsored by employers with tax identification numbers (EINs) ending in a two or a seven, as well as any multiple employer plans.

Year End Plan Amendments

In order to comply with IRS deadlines, discretionary plan amendments must be adopted by the last day of the plan year in which the change is effective (subject to anti-cutback rules that may require earlier adoption). Thus, plan sponsors of calendar year qualified benefit plans must amend their plans prior to the end of 2012 to reflect any discretionary plan amendments that took effect during the current calendar year. As further discussed later in this Update, the IRS has again extended the deadline for adopting an interim amendment with respect to Code section 436, and thus no amendment is required prior to the end of this calendar year.