Justification of Changes

Major Changes to Form 4461-A and Instructions
(Revised 2007)
Revenue Procedure 2005-16, 2005-10 I.R.B. 674 contains revised procedures for preapproved plans (Master & Prototype (M&P) and Volume Submitter (VS plans). Until the
issuance of Rev. Proc. 2005-16, the rules for M&P and VS plans were contained in
different revenue procedures. These rules have now been consolidated into this revenue
procedure. The Form 4461-A has been revised to allow for VS submissions as well as
M&P submissions. Listed below are the major changes:

1. We changed the title of the form from “Application for Approval of Master or
Prototype Defined Benefit Plan” to “Application for Approval of Master or
Prototype or Volume Submitter Defined Benefit Plan”.
2. Page 1, on Line 3, Line 3d, we added a check box for “Volume Submitter
Practitioner”, “Volume Submitter Mass Submitter”, and “Volume Submitter
National Sponsor”.
3. On Page 1, line 3c, we are asking the filer to provide an email address to allow the
Service to send an interim email notifying the applicant that review of the plan has
been completed, subject to final approval by opinion or advisory letter.

4. On Page 1, Line 8, Page 1, we deleted 2 check boxes and added a check box for the
Volume Submitter plan.

5. On Page 2, line 9d, we are revising the header to “Non-mass submitter request (M&P
complete (1) and (2). VS complete (3)).”

6. On Page 2, line 9e, we listed the lines that must be completed by M&P and VS mass
submitters and national sponsors.

7. On Page 2, we changed line 9e (4) to line 9e (5) and we changed the date of the 12
month ending period to April 1, 2007. In this same line, we added the following text
“or any VS specimen plan of the practitioner.”

8. Page 2, Line 9, we deleted question b(3) and added the following question:
•

“For all M&P sponsors and those VS practitioners who are choosing to include
a provision in their specimen plans that allows them to amend on behalf of
their adopting employers, will you advise those employers who cannot or do
not adopt the amended or restated plan providing for such authority, that they
may not continue to participate under the M&P plan or the VS plan?”
1

•

We added new question 9d(3):
“If you are a VS (non-mass submitter) practitioner, do you have at least 30
employer-clients reasonably expected to adopt a plan that is substantially
similar to the VS practitioner specimen plan?”

•

We added a new question 9e(4):
“For a VS mass submitter, are applications on behalf of at least 30 unaffiliated
practitioners sponsoring the same specimen plan on a word-for-word identical
basis included?”

9. On Page 3, under the note, we updated the rev. proc to 2005-16. We also added that
filers will be able to obtain the List of Required Modifications (LRM’s) through the
IRS website.

10. Page 6, Line 10h, we added 2 new questions:
•

Question 17(b):
“Does the plan provide for the automatic rollover of a mandatory distribution
over $1,000 to an individual retirement plan, unless the participant elects
otherwise?”

•

Question 17(c):
“If provided in the adoption agreement, does the plan specify the source from
where it will accept rollovers, such as the type of plans?”

11. On Page 6, line 10h (14) (d), we changed the Regulations section to 1.401(a) (9)-6
Q&A-2.

12. On Page 7, Line 10k, (Form 4461-A,) replaced this line with Line 10k, Page 7, of
Form 4461 (10-2006).

13. On Page 7, after replacing Line 10k, with Form 4461, Page 7, Line 10k, we replaced
line 10k(5) with “Are the rights of all affected employees to benefits accrued to the
date of such termination or partial termination, to the extent funded as of such date,
nonforfeitable?”

14. On Page 7, after replacing Line 10k, with Form 4461, Page 7, Line 10k, we deleted
line 10k(6) (as this applies to DC plans only). Accordingly, we renumbered (7), (8),
and (9), with (6), (7), and (8), respectfully.
2

after replacing line 10k,
15. On Page 8, we deleted Line 10k(8)(c), as this no longer applies due to a rule change.
Accordingly, we changed 10k(8)(d) to 10k(8)(c). See Rev. Proc. 2007-44, section
19.05(3).

7
16. On Page 8, Line 10L, Item (10), replaced this line with language in Line 10L, Item
(9), Page 8, of Form 4461 (10-2006).
“Does the adopting agreement contain a cautionary statement describing the
limitations on employer reliance on an opinion or advisory letter without a
determination letter and that the failure to properly fill out the adoption agreement
may result in disqualification of the plan?”

17. Line 10L, Page 8, added new question (13), “Does the plan contain any sub-trusts for
life insurance?”

18. Page 8, changed Part II, Line 11c to read as Part II, Line 11d, Page 8 of Form 4461
(10-2006).
“Does the adoption agreement contain, in close proximity to the employer’s signature
line, the circumstances under which the adoption employer may not rely on the
opinion letter (as set forth in section 19, of Rev. Proc. 2005-16), including a statement
that the employer, in order to obtain or retain reliance, must obtain a determination
letter if the employer ever has maintained any other plan (including a welfare benefit
plan)?

19. On Page 8, we deleted Part III, Complete This Part if You Are Filing for a
Paired Plan because it no longer applicable.

20. On Page 9, we changed Part IV to Part III and added “M&P Only” to the heading.
we renumbered 13 to 12,

21. On Page 9, we change Line 12g to read the same as Form 4461, Line 12(b), as
follows:

Page 9,

“Does the adoption agreement contain, in close proximity to the employer’s
signature line, the circumstances under which adopting employers may not
rely on an opinion letter issued by EP Rulings and Agreements, with
respect to the qualification of this plan unless they apply to EP
Determinations for a determination letter.”

22. On Page 10, Nonstandardized plans, we deleted the last sentence “A nonstandardized
safe harbor plan must meet the requirements of section 4.14 of Rev. Proc. 2000-20,
2000-6 I.R.B. 553. This will make the definition consistent with the instruction to
Form 4461.
3

23. On Page 10, under Where to File, Form 4461-A is now required to be mailed to a new
address, pursuant to section 7 of Rev. Proc. 2007-8, I.R.B. 2007-1, 230 (January 2,
2007):
Internal Revenue Service
P.O. Box 2508
Rm. 5106
Cincinnati, OH 45201
Applications shipped by Express Mail or a delivery service should be sent to:
Internal Revenue Service
550 Main Street,
Attn: Control and Processing, Room 5106
Cincinnati, OH 45202
24. On Page 11 under Definitions, we added “VS Mass Submitter“, “VS Plan”,
“Specimen Plan” and “VS Practitioner” to the list. See sections 13.01, 13.02, 13.04
and 13.05 of Rev. Proc. 2005-16.
25. On Page 11, under Specific Instructions, we updated the Rev. Proc. 2003-7 to reflect
Rev. Proc. 2007-8, Section 6.05(1) & Section 6.05(2), for the new user fees.
Supersedes Rev. Proc. 2006-8.
•

Section 6.05(1) states, “Opinion letters on master and prototype plans. Mass
submitter M & P plan, per basic plan document, new or amended, with one
adoption agreement $9,000.”

•

Section 6.05(2) states, “Nonmass submission (new or amended) by M& P
sponsor, per adoption agreement $9,000.”

26. On Page 11, column 2, we changed the definition of Specimen plan, to read the
same as the definition for Specimen Plan in the instructions to Form 4461
(Rev 10-2006). Also, we remove the definition of VS Plan as it is not needed.
27. On Page 12, Line 10l, in the last sentence, we added the word “because” after the
word “solely”, so that it reads “…for purposes of vesting and benefit accruals, solely
because of an absence due to qualified military service.”
28. On Page 12, we changed the address for submitting comments to the Internal
Revenue Service, Tax Products Coordinating Committee,
SE: W: CAR: MP: T: T: SP, 1111 Constitution Ave., NW, IR-6525, Washington, DC
20024.

We made editorial and style guide changes throughout the instructions.

Most of the changes to the form were done to make them consistent with the changes
made to the Form 4461, which were mainly due to changes in application and submission
procedures under Rev. Proc. 2005-16.
4