Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans

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Instructions for Form 5307

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7:23 - 1-MAY-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Department of the Treasury
Internal Revenue Service

Instructions for Form 5307
(Rev. May 2008)
Application for Determination for Adopters of
Master or Prototype (M&P) or Volume Submitter (VS) Plans
Section references are to the Internal
Revenue Code unless otherwise noted.

Type of Plan

What’s New for Defined
Contribution Plans

a plan that provides an individual
account for each participant and for
benefits based only:
1. On the amount contributed to the
participant’s account, and
2. Any income, expenses, gains and
losses, and any forfeitures of accounts
of other participants that may be
allocated to the participant’s account.
• A Defined Benefit Plan (DBP) is any
plan that is not a DCP.

Requirements for Switching to
6-Year Remedial Amendment Cycle.
All applications must be accompanied
by new Form 8905, Certification of
Intent To Adopt a Pre-approved Plan, if
an employer intends to switch from the
5-year remedial amendment cycle to
the 6-year remedial amendment cycle
by meeting one of the eligibility
requirements for the 6-year remedial
amendment cycle. For more
information, see Rev. Proc. 2007-44,
which is on page 54 of Internal
Revenue Bulletin 2007-28 at www.irs.
gov/pub/irs-irbs/irb07-28.pdf.

Disclosure Request by
Taxpayer
A taxpayer can authorize the IRS to
disclose and discuss the taxpayer’s
return and/or return information with
any person(s) the taxpayer designates
in a written request. Use Form 2848,
Power of Attorney and Declaration of
Representative, if the representative is
qualified to sign, or Form 8821, Tax
Information Authorization, for this
purpose. See Pub. 947, Practice Before
the IRS and Power of Attorney, for
more information.

Public Inspection
Form 5307 is open to public inspection
if there are more than 25 plan
participants. The total number of
participants must be shown on line 4e.
See the instructions for line 4e for a
definition of participant.

• A Defined Contribution Plan (DCP) is

A qualified plan must satisfy
section 401(a) including, but not
CAUTION limited to, participation, vesting,
nondiscriminatory contributions or
benefits, distributions, and contribution
and benefit limitations.

!

Purpose of Form
Adopters of Master or Prototype (M&P)
or volume submitter (VS) plans file
Form 5307 to request a determination
letter from the IRS for the qualification
of a defined benefit or a defined
contribution plan and the exempt status
of any related trust.

Application for Determination for
Employee Benefit Plan);
• A multiemployer or multiple-employer
plan (use Form 5300);
• An employee stock ownership plan
(ESOP) (attach Form 5309, Application
for Determination of Employee Stock
Ownership Plan, to Form 5300);
• An individually designed plan (other
than an approved VS plan) (use Form
5300); or
• A request to determine if you are a
member of an affiliated service group
(use Form 5300).

Where To File
File Form 5307 at the address indicated
below:
Internal Revenue Service

Who May File
This form may be filed by an adopter of:
• An approved non-standardized M&P
plan,
• An approved VS plan, or
• An approved standardized plan
under the circumstances described in
Rev. Proc. 2005-16, as modified by
Rev. Proc. 2007-44.
See Announcement 2001-77, 2001-30
I.R.B. 83 for exceptions.

Standardized Plans
Standardized plans will generally satisfy
the requirements of sections 410(b) and
401(a)(4) if they follow the terms of
their plan document. Specific
determinations regarding sections
410(b) and 401(a)(4) are not routinely
issued for these plans since a
standardized plan operated in
accordance with its terms will satisfy
the requirements of sections 410(b) and
401(a)(4).

Who May Not File

General Instructions

• A cash balance plan (use Form 5300,

This form may not be filed to request a
determination letter for:
• An M&P adopter that amends the
plan other than through the choice of
elections offered under the approved
adoption agreement. However, an M&P
adopter may amend the adoption
agreement to add overriding language
for sections 415 or 416 because of the
aggregation of plans or may amend the
trust or custodial account document to
make any permitted changes;
Cat. No. 11833J

P.O. Box 192
Covington, KY 41012-0192.
Private Delivery Services. In addition
to the United States mail, you can use
certain private delivery services
designated by the IRS to meet the
“timely mailing as timely filing/paying”
rule for tax returns and payments.
These private delivery services include
only the following:
• DHL Express (DHL): DHL Same Day
Service, DHL Next Day 10:30 am, DHL
Next Day 12:00 pm, DHL Next Day
3:00 pm, and DHL 2nd Day Service.
• Federal Express (FedEx): FedEx
Priority Overnight, FedEx Standard
Overnight, FedEx 2Day, FedEx
International Priority, and FedEx
International First.
• United Parcel Service (UPS): UPS
Next Day Air, UPS Next Day Air Saver,
UPS 2nd Day Air, UPS 2nd Day Air
A.M., UPS Worldwide Express Plus,
and UPS Worldwide Express.
The private delivery service can tell
you how to get written proof of the
mailing date.

How To Complete the
Application
Applications are screened for
completeness. The application must be
signed by the employer, plan
administrator, or authorized
representative.

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Instructions for Form 5307

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Stamped signatures are not
acceptable; see Rev. Proc.
CAUTION 2008-4, which is on page 121 of
Internal Revenue Bulletin 2008-1 at
www.irs.gov/pub/irs-irbs/irb08-01.pdf.
Incomplete applications may be
returned to the applicant. For this
reason, it is important that an
appropriate response be entered for
each line item (unless instructed
otherwise). In completing the
application, pay careful attention to the
following:
• N/A (not applicable) is accepted as a
response only if an N/A block is
provided.
• If a number is requested, a number
must be entered.
• If an item provides a choice of boxes
to check, check only one box unless
instructed otherwise.
• If an item provides a box to check,
written responses are not acceptable.
• Governmental plans and nonelecting
church plans do not have to complete
line 10a.
• The IRS may, at its discretion,
require a plan restatement or additional
information any time it is deemed
necessary.
• The application has formatted fields
that will limit the number of characters
entered per field.
• All data input will need to be entered
in Courier 10 point font.
• Alpha characters should be entered
in all capital letters.
• Enter spaces between any words.
Spaces do count as characters.
• All date fields are entered as an
eight-digit field (MMDDYYYY).
Rev. Proc. 2008-6 publishes the
guidance under which the
determination letter program is
administered. It is updated annually and
can be found in the Internal Revenue
Bulletin (I.R.B.).
Example. Rev. Proc. 2008-6, which is
on page 192 of Internal Revenue
Bulletin 2008-1 at www.irs.gov/pub/
irs-irbs/irb08-01.pdf, superseded Rev.
Proc. 2007-6.

!

What To File

scope of a determination letter by
requesting a determination that your
plan satisfies certain qualification
requirements relating to minimum
participation, coverage, and
nondiscrimination. Schedule Q is no
longer mandatory.
• Form 8905, Certification of Intent To
Adopt a Pre-approved Plan, if an
employer intends to switch from the
5-year remedial amendment cycle to
the 6-year remedial amendment cycle
by meeting one of the eligibility
requirements for the 6-year remedial
amendment cycle.
• All applications for plans that have at
any time in the past received a
favorable determination letter must
include a copy of the plan’s latest
determination letter.
• An opinion or advisory letter issued
to the plan must accompany all
applications for adopters of M&P or VS
plans.
• An adoption agreement must be
submitted for M&P plans. Do not submit
a copy of the basic plan document or
trust instrument unless the plan is an
M&P which uses a separate trust or
custodial account document, in which
case such trust or custodial account
document must be submitted along with
the application.
• All applications submitted by
adopters of approved VS plans must be
accompanied by a copy of the plan and
trust instrument and a written
representation, made by the VS under
penalty of perjury, which explains if the
plan and trust instrument are or are not
word-for-word identical to the approved
specimen plan and, if not identical,
describes the location, nature, and
effect of each difference from the
language of the approved specimen
plan.
• Written authorization allowing the VS
practitioner to act as a representative of
the employer with respect to the
request for a determination letter.
• All applications submitted by
adopters of approved VS plans must
also be accompanied by any other
information or material required by the
Service.

Payments for sanction fees,

TIP compliance fees, etc. should be
submitted on separate checks.

• A completed Form 5307, which

consists of pages 1-9.
• The appropriate user fee, if
applicable, and Form 8717, User Fee
for Employee Plan Determination Letter
Request. Please submit a separate
check for each application. Make
checks payable to the “United States
Treasury.”
• Schedule Q (Form 5300) Elective
Determination Requests. Complete
Schedule Q, if you want to broaden the

Specific Plans—
Additional Requirements
(See Procedural Requirements
Checklist)
• If this application is filed for a
standardized plan, complete only lines
1 through 5, 7 through 9, and 10c
through 10g. Explain in a cover letter
why the application is being filed.
• For a governmental or nonelecting
church plan, complete Form 5307 but
skip line 10a. A nonelecting church plan

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is a plan for which an election under
section 410(d) has not been made.
• For plans of controlled groups of
corporations, trades or businesses
under common control, and affiliated
service groups, submit the statement
specified in the instructions for lines 6a
and 6b.
• File Form 5310, Application for
Determination for Terminating Plan, to
request a determination letter for the
complete termination of a DBP or DCP.

Specific Instructions
Lines 1b through 1g. Enter the
name, address, and telephone number
of the plan sponsor/employer. A “plan
sponsor” means:
1. In the case of a plan that covers
the employees of one employer, the
employer;
2. In the case of a plan sponsored
by two or more entities required to be
combined under sections 414(b), (c), or
(m), one of the members participating in
the plan; or
3. In the case of a plan that covers
the employees and/or partner(s) of a
partnership, the partnership.
The name of the plan sponsor/
employer should be the same name
that was or will be used when the Form
5500, Annual Return/Report of
Employee Benefit Plan, or Form
5500-EZ, Annual Return of
One-Participant (Owners and Their
Spouses) Retirement Plan, is filed for
the plan.
Address. Include the suite, room, or
other unit number after the street
address. If the Post Office does not
deliver mail to the street address and
the plan has a P.O. box, show the box
number instead of the street address.
The address should be the address of
the sponsor/employer.
Line 1h. Enter the nine-digit employer
identification number (EIN) assigned to
the plan sponsor/employer. This should
be the same EIN that was or will be
used when the Form 5500 or Form
5500-EZ is filed for the plan.

!

Do not use a social security
number of the EIN of the trust.

CAUTION

The plan sponsor/employer must
have an EIN. A plan sponsor/employer
without an EIN can apply for one.
• Online — Generally, a plan sponsor/
employer can receive an EIN by
Internet and use it immediately to file a
return. Go to the IRS website at www.
irs.gov/businesses/small and click on
Employer ID numbers.

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Instructions for Form 5307

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• By telephone — Call 1-800-829-4933.
• By mail or fax — Send in a completed

Form SS-4, Application for Employer
Identification Number. Form SS-4 can
be obtained by calling 1-800-829-3676.
The plan of a group of entities
required to be combined under section
414(b), (c), or (m) whose sponsor is
more than one of the entities required
to be combined should only enter the
EIN of one of the sponsoring members.
This EIN must be used in all
subsequent filings of determination
letter requests and annual returns/
reports unless there is a change of
sponsor.
Line 1k. Enter the two digits
representing the month the employer’s
tax year ends. This is the employer
whose EIN was entered on line 1h.
Line 2. The contact person will receive
copies of all correspondence as
authorized in a Power of Attorney and
Declaration of Representative, Form
2848, or Tax Information Authorization,
Form 8821. Either complete the
contact’s information on this line, or
check the box and attach a power of
attorney or other written designation.
Line 3a. Enter the number(s) that
correspond to the request(s) being
made.
Enter 1 if the IRS has not issued a
determination letter for this plan.
Enter 2 if the IRS has previously
issued a determination letter for this
plan.
Enter 3 if this is a standardized plan.
For additional guidance see Section 19
of Rev. Proc. 2005-16, which is on
page 674 of Internal Revenue Bulletin
2005-10 at www.irs.gov/pub/irs-irbs/
irb05-10.pdf.
Line 3c. If more than four
amendments, list amendments on a
separate piece of paper using the same
format as shown on form and label it as
an attachment to line 3c.
Line 3d. Enter the date(s) the
amendment(s) was signed. If an
amendment is proposed, enter “09/09/
9999.”
Line 3e. Enter the effective date(s) of
each amendment listed in line 3d. The
term “date amendment effective”
means the date the amendment
becomes operative or takes effect.
Line 3f. If you do not have a copy of
the latest determination letter, or if no
determination letter has ever been
received by the employer, submit
copies of the initial plan (or adoption
agreement along with the appropriate
opinion or advisory letter), or the latest
plan (or adoption agreement along with
the appropriate opinion or advisory
letter), and any subsequent
amendments and/or restatements.

Note. If any amendments that are
submitted predate the last favorable
determination letter, they will not be
ruled on. Also, if any amendments are
made while the application is pending,
it is recommended that you contact the
Service to associate the amendment(s)
with the current application. See Rev.
Proc. 2008-6, which is on page 192 of
Internal Revenue Bulletin 2008-1 at
www.irs.gov/pub/irs-irbs/irb08-01.pdf.
Line 3i. Section 3001 of ERISA
requires the applicants subject to
section 410 to provide evidence that
each employee who qualifies as an
interested party has been notified of the
filing of the application. If “Yes” is
checked, it means that each employee
has been notified as required by
Regulations section 1.7476-1. If this is
a one-person plan or if this plan is not
subject to section 410, a copy of the
notice is not required to be attached to
this application. If “No” is checked or
this line is blank, your application will
be returned.
Rules defining “interested parties”
and the form of notification are in
Regulations section 1.7476-1. For an
example of an acceptable format, see
Rev. Proc. 2008-6, which is on page
192 of Internal Revenue Bulletin 2008-1
at www.irs.gov/pub/irs-irbs/irb08-01.pdf.
Line 3n. Even if a ruling is not being
requested on Schedule Q, Demo 8,
submit a copy of the pertinent plan
provisions regarding the offset.
Line 4a. Due to space restrictions, this
field is limited to 70 characters,
including spaces. Please complete this
item with how the plan name should
read on the determination letter to the
extent permitted. Due to this restriction,
please keep in mind that “Employees”
and “Trust” are not necessary in the
plan name.
Line 4b. Enter the three-digit number,
beginning with ‘‘001’’ and continuing in
numerical order for each plan you
adopt (001-499). This numbering will
differentiate your plans. The number
assigned to a plan must not be
changed or used for any other plan.
This should be the same number that
was or will be used when the Form
5500 or Form 5500-EZ is filed for the
plan.
Line 4c. Plan month means the
two-digit (mm) calendar, policy, or fiscal
month on which the records of the plan
are kept.
Line 4e. Enter the total number of
participants. A “participant” means:
1. The total number of employees
participating in the plan including
employees under a section 401(k)
qualified cash or deferred arrangement
who are eligible but do not make
elective deferrals,

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2. Retirees and other former
employees who have a nonforfeitable
right to benefits under the plan, and
3. The beneficiary of a deceased
employee who is receiving or will in the
future receive benefits under the plan.
Include one beneficiary for each
deceased employee regardless of the
number of individuals receiving
benefits. Payment of a deceased
employee’s benefit to three children is
considered a payment to one
beneficiary.
Line 5. Cash balance plan. For this
purpose, a ‘‘cash balance’’ formula is a
benefit formula in a defined benefit plan
by whatever name (for example,
personal account plan, pension equity
plan, life cycle plan, cash account plan,
etc.) that rather than, or in addition to,
expressing the accrued benefit as a life
annuity commencing at normal
retirement age, defines benefits for
each employee in terms more common
to a defined contribution plan such as a
single sum distribution amount (for
example, 10 percent of final average
pay times years of service, or the
amount of the employee’s hypothetical
account balance). Use Form 5300
rather than Form 5307, to request a
letter for a cash balance plan.
Lines 6a and 6b. If the plan employer
is a member of a controlled group of
corporations, trades or businesses
under common control, or an affiliated
service group, all employees of the
group will be treated as employed by a
single employer for purposes of certain
qualification requirements.
Attach a statement showing in detail:
1. All members of the group,
2. The relationship of each member
to the plan sponsor,
3. The type(s) of plan(s) maintained
by each employer, and
4. Plans common to all members.
If you want to apply for a

TIP determination letter to determine
if you are a member of an
affiliated service group, file Form 5300
instead of Form 5307.
Line 7d. Answer this ‘‘Yes’’ if you
have selected any choice labeled
‘‘Other’’ in the adoption agreement.
Line 8f. If the plan has been involved
in a merger, attach a statement which
provides the following:
1. Name of plan,
2. Type of plan(s) involved,
3. Date(s) of merger(s),
4. Verification that each plan
involved was qualified at the time of
merger (copy of prior DL, if any,
otherwise provide a signed and dated
copy of the most recent restatement
and subsequent amendments).

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Instructions for Form 5307

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Note.
• The plan and amendments submitted
to verify that plans were qualified prior
to the merger are for information
purposes only and will not be ruled on.
• If applicable, file Form 5310-A,
Notice of Plan Merger or Consolidation,
Spinoff, or Transfer of Plan Assets or
Liabilities; Notice of Qualified Separate
Lines of Business, 30 days prior to the
merger, consolidation, or transfer of
assets or liabilities.
Line 8g. If the plan has been restated
to change the type of plan under
Regulations section 1.401-1, answer
this question “Yes” and attach a
statement explaining the change.
Line 9a. If “Yes” is checked, attach a
list for each plan, which includes the
following information:
1. Name of plan,
2. Type of plan,
3. Form of plan (standardized,
non-standardized, VS, or individually
designed),
4. Plan number,
5. Vesting schedule,
6. Whether the plan has received a
determination letter or an application for
a letter is pending with IRS.
Also indicate if the plan is paired (if
paired, indicate the letter serial number
of the paired plan).
Lines 9b and 9c. See M-8, M-12, and
M-14 of Regulations section 1.416-1.
Line 10a. Section 411(d)(6) protected
benefits include:
• The accrued benefit of a participant
as of the later of the amendment’s
adoption date or effective date; and
• Any early retirement benefit,
retirement-type subsidy, or optional
form of benefit for benefits from service
before such amendment.
If the answer is “Yes,” explain on an
attachment how the amendment
satisfies one of the exceptions to the
prohibition on reduction or elimination
of section 411(d)(6) protected benefits.

Optional Ratio
Percentage Test
Determination
Line 11. This question may be used to
request an optional determination
regarding the ratio percentage test
under Regulations section
1.410(b)-2(b)(2). If ‘‘No’’ is checked and
a request for a determination regarding
the average benefit test is not made on
Schedule Q, the determination letter for
the plan will not be a determination
regarding section 410(b). If ‘‘No’’ is
checked but a request for a
determination regarding the average
benefit test is made on Schedule Q, the
determination letter for the plan will also

be a determination regarding the
average benefit test. Plans using the
qualified separate lines of business
rules of section 414(r) must file
Schedule Q if a determination is
desired that the plan satisfies the
gateway test of section 410(b)(5)(B) or
the special requirements for
employer-wide plans.
Line 11a. If a determination is being
requested and the plan is
disaggregated into two or more
separate plans that are other than
profit-sharing and/or sections 401(k)
and/or 401(m) plans, complete lines
11c through 11l with respect to each
disaggregated portion of the plan.
Attach additional schedules as
necessary to identify the other
disaggregated portions of the plan.
Provide the requested coverage
information, in the same format as line
11, separately with respect to the other
portions of the plan, or to otherwise
show that the other portions of the plan
separately satisfy section 410(b).
Example. If this plan benefits the
employees of more than one qualified
separate line of business (QSLOB), the
portion of the plan benefiting the
employees of each QSLOB is treated
as a separate plan maintained by that
QSLOB and must separately satisfy
section 410(b) unless the
employer-wide plan testing rule in
Regulations section 1.414(r)-1(c)(2)(ii)
applies.
If a determination is being requested
for a section 401(k) and/or 401(m) plan,
you must complete lines 11c through
11l for the portion of the plan that is not
a section 401(k) or a 401(m) plan. Also
complete line 11m(1) to report the ratio
percentage for the section 401(k)
portion of the plan and line 11m(2) to
report the ratio percentage for the
section 401(m) portion of the plan.
Line 11c. If, for purposes of satisfying
the minimum coverage requirements of
section 410(b), you are applying the
daily testing option in Regulations
section 1.410(b)-8(a)(2) or the quarterly
testing option in Regulations section
1.410(b)-8(a)(3), or, if you are using
single-day ‘‘snapshot’’ testing as
permitted under section 3 of Rev. Proc.
93-42, 1993-2 C.B. 540, enter the most
recent eight-digit date (MMDDYYYY)
for which the coverage data is
submitted. If you are applying the
annual testing option in Regulations
section 1.410(b)-8(a)(4), enter the year
for which the coverage data is
submitted.
Line 11d. Include all employees of all
entities combined under sections
414(b), (c), (m), or (o). Also include all
self-employed individuals, common law
employees, and leased employees as
defined in section 414(n) of any of the

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entities above, other than those
excluded by section 414(n)(5). Certain
individuals may also be required to be
counted as employees. See the
definition of employee in Regulations
section 1.410(b)-9. Also see
Regulations section 1.410(b)-6(i), which
may permit the employer to exclude
certain former nonhighly compensated
employees.
Note. This note applies only to plans
that include a qualified cash or deferred
arrangement under section 401(k) or
employee or matching contributions
under section 401(m). If there are any
contributions under the plan that are
not subject to the special rule for
section 401(k) plans and section
401(m) plans in Regulations section
1.401(a)(4)-1(b)(2)(ii)(B) (such as
nonelective contributions), complete
lines 11e through 11k with respect to
the portion of the plan that includes
these contributions and enter the ratio
percentage for this portion of the plan
on line 11l. Otherwise, complete lines
11e through 11k with respect to the
section 401(k) part of the plan (or the
section 401(m) plan if there is no
section 401(k) arrangement) and leave
line 11l blank. In all cases, enter the
ratio percentages for the section 401(k)
and the section 401(m) parts of the
plan, as applicable, on line 11m. These
percentages should be based on the
actual nonexcludables in the 401(k) and
401(m) portions, respectively. It is
suggested that these calculations be
submitted with the application but this is
optional.
If the plan provides for
nonelective profit-sharing
CAUTION contributions, do not base the
calculations on lines 11m(1) and (2) on
the nonexcludable employees reported
on line 11g unless all of the
disaggregated plans (profit-sharing,
401(k), and 401(m)) have the same
nonexcludable employees with the
same age and service requirements.

!

Line 11e(1). Enter the number of
employees who are excluded because
they have not attained the lowest
minimum age and service requirements
for any employee under this plan. If the
employer is separately testing the
portion of a plan that benefits otherwise
excludable employees, attach a
separate schedule describing which
employees are treated as excludable
employees on account of the minimum
age and service requirements under
each separate portion of the plan.
Line 11e(2). Enter the number of
employees who are excluded because
they are collectively bargained
employees as defined in Regulations
section 1.410(b)-6(d)(2), regardless of
whether those employees benefit under

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the plan. For this purpose, an employee
covered under a CBA is not considered
a collectively bargained employee if
more than 2% of the employees who
are covered under the agreement are
professional employees as defined in
Regulations section 1.410(b)-9.
Line 11e(3). Enter the number of
employees who do not receive an
allocation or accrue a benefit under the
plan only because they do not satisfy a
minimum hours of service requirement
or a last day of the plan year
requirement, provided they do not have
more than 500 hours of service, and
they are not employed on the last day
of the plan year. Do not enter on this
line any employees who have more
than 500 hours of service, even if they
are not employed on the last day of the
plan year.
Line 11e(4). If this plan benefits the
employees of one QSLOB, enter on
this line the number of employees of
the employer’s other QSLOBs. This is
not applicable if the plan is tested under
the special rule for employer-wide plans
in Regulations section
1.414(r)-1(c)(2)(ii).
Line 11e(5). Enter the number of
employees who are nonresident aliens
with no earned income (as defined in
section 911(d)(2)) from the employer
that constitutes income from sources
within the United States (as defined in
section 861(a)(3)).
Line 11g. Subtract the total of lines
11e(1) through 11e(5) as reported on
line 11f from the total employees
reported on line 11d. The result is the
number of ‘‘nonexcludable employees.’’
These are the employees who cannot
be excluded from the plan for statutory
or regulatory reasons and must be
considered in the calculation of the ratio
percentage even though they might not
‘‘benefit’’ under the plan. If they meet
the age and service requirements of
section 410 and are not otherwise
excludable employees, they must be
included in this number.
Line 11h. Enter the number of
employees on line 11g who are highly
compensated employees (HCEs) as
defined in section 414(q).
Line 11i. In general, an employee is
treated as benefiting under the plan for
coverage tests purposes only if the
employee receives an allocation of
contributions or forfeitures or accrues a
benefit under the plan for the plan year.
Certain other employees are treated as
benefiting if they fail to receive an
allocation of contributions and/or
forfeitures, or to accrue a benefit, solely
because they are subject to plan
provisions that uniformly limit plan
benefits, such as a provision for
maximum years of service, maximum

retirement benefits, application of
offsets or fresh start wear-away
formulas, or limits designed to satisfy
section 415. An employee is treated as
benefiting under a plan to which
elective contributions under section
401(k) or employee contributions and
matching contributions under section
401(m) may be made if the employee is
currently eligible to make such elective
or employee contributions, or to receive
a matching contribution, whether or not
the employee actually makes or
receives such contributions
(Regulations section 1.401(k)-1(g)(4)
and 1.401(m)-1(f)(4)). However, do not
apply this rule to determine if an
employee is to be counted as benefiting
for lines 11i and 11k if, in accordance
with the Note following the instruction
for line 11d, the information provided in
lines 11e through 11k relates to the
portion of the plan that is not subject to
the rule in Regulations section
1.401(a)(4)-1(b)(2)(ii)(B).
Line 11k. See the instructions for line
11i for the meaning of ‘‘benefiting under
the plan.’’
Line 11l. To obtain the ratio
percentage:
Step 1. Divide the number on line
11k (nonexcludable NHCEs benefiting
under the plan) by the number on line
11j (nonexcludable NHCEs).
Step 2. Divide the number on line
11i (nonexcludable HCEs benefiting
under the plan) by the number on line
11h (nonexcludable HCEs).
Step 3. Divide the result from Step
1 by the result from Step 2.
If the ratio percentage entered

TIP on line 11l and/or line 11m is
less than 70%, the plan does
not satisfy the ratio percentage test. In
this case, the plan must satisfy the
average benefit test. A determination
regarding the average benefit test can
be requested using Schedule Q.
Line 11m. See the Note following the
instructions for line 11d. To determine
the ratio percentages for the section
401(k) and all section 401(m) (matching
and employee contribution) portions of
the plan, follow the steps described in
the instructions for lines 11d through
11l, but treat an employee as benefiting
under the rules for section 401(k) plans
and section 401(m) plans described in
the instruction for line 11i.

Design-Based
Nondiscrimination Safe
Harbors
Line 12. This question may be used
by certain plans to request an optional

-5-

determination regarding the
design-based safe harbor under section
401(a)(4).
If this is a section 401(k) and/or
section 401(m) plan that does not
contain a provision for nonelective
employer contributions, this option
should be marked “No.”
If any disaggregated plan relies on a
non-design based safe harbor or a
general test this option must be marked
‘‘No.’’ The Schedule Q may be used to
request a determination regarding a
non-design based safe harbor or a
general test.
If this plan has been restructured
into component plans, this option must
be marked “No.” The Schedule Q may
be used to request a determination
regarding how each restructured
component plan satisfies the
nondiscrimination in amount
requirement of Regulations section
1.401(a)(4)-1(b)(2).
If “Yes” is checked, or if “No” is
checked but a request for a
determination regarding a non-design
based safe harbor or a general test is
made on Schedule Q, the determination
letter for the plan will also be a
determination regarding the section
401(a)(4) requirement that a plan not
discriminate in the amounts of
contributions or benefits.
If “No” is checked, and a request for
a determination regarding a non-design
based safe harbor or a general test is
not made on Schedule Q, the
determination letter for the plan will not
be a determination regarding this
requirement, unless the plan is a
section 401(k) and/or section 401(m)
plan only.
Line 12a. Check ‘‘Yes’’ if the plan is
intended to satisfy the permitted
disparity requirements of section 401(I).
Line 12b. To satisfy section 401(l), a
plan must provide that the overall
permitted disparity limits are not
exceeded and specify how
employer-provided contributions or
benefits under the plan are adjusted, if
necessary, to satisfy the overall
permitted disparity limits. See
Regulations section 1.401(l)-5.
The plan will not satisfy the safe
harbor requirements of IRC
CAUTION section 401(a)(4) if it does not
satisfy section 401(l).

!

Line 12c. This line provides a list of
the design-based nondiscrimination
safe-harbor regulations.

Page 6 of 6

Instructions for Form 5307

7:23 - 1-MAY-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

How To Get Forms and
Publications
Internet
You can access the IRS website 24
hours a day, 7 days a week at www.irs.
gov to:
• Download forms, instructions, and
publications;
• Order IRS products on-line;
• Research your tax questions on-line;
• Search publications on-line by topic
or keyword;
• View Internal Revenue Bulletins
(IRBs) published in the last few years;
and
• Sign up to receive local and national
tax news by email.

CD/DVD
You can order Publication 1796, IRS
Tax Products CD/DVD, and obtain:
• Current-year forms, instructions, and
publications.
• Prior-year forms, instructions, and
publications.
• Bonus: Historical Tax Products DVD
- Ships with the final release.
• Tax Map: an electronic research tool
and finding aid.
• Tax law frequently asked questions.
• Tax topics from the IRS telephone
response system.
• Fill-in, print, and save features for
most tax forms.
• Internal Revenue Bulletins.
• Toll-free and email technical support.
• The CD which is released twice
during the year.

The first release will ship the beginning
of January 2008.
The final release will ship the beginning
of March 2008.
Purchase the CD/DVD from National
Technical Information Service (NTIS) at
www.irs.gov/cdorders for $35 (no
handling fee) or call 1-877-CDFORMS
(1-877-233-6767) toll-free to buy the
CD/DVD for $35 (plus a $5 handling
fee). Price is subject to change.

must be retained as long as their
contents may become material in the
administration of any Internal Revenue
law. Generally, tax returns and return
information are confidential, as required
by section 6103.
The time needed to complete and
file this form will vary depending on
individual circumstances. The
estimated average time is:
Form 5307

By Phone and in Person
You can order forms and publications
by calling 1-800-TAX-FORM
(1-800-829-3676). You can also get
most forms and publications at your
local IRS office.
Paperwork Reduction Act Notice.
We ask for the information on this form
to carry out the Internal Revenue laws
of the United States. If you want to
have your plan approved by the IRS,
you are required to give us the
information. We need it to determine
whether you meet the legal
requirements for plan approval.
We may also disclose this
information to other countries under a
tax treaty, or to federal and state or
local agencies to enforce federal nontax
criminal laws and to combat terrorism.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records
relating to a form or its instructions

-6-

Sch. Q (Form
5300)

Recordkeeping

28 hr., 27
min.

6 hr., 13 min.

Learning about
the law or the
form

7 hr., 28 min.

9 hr., 14 min.

13 hr., 51
min.

9 hr., 45 min.

Preparing the
form
Copying,
assembling,
and sending the
form to the IRS

1 hr., 36 min.

If you have comments concerning
the accuracy of these time estimates or
suggestions for making this form
simpler, we would be happy to hear
from you. You can write to the Tax
Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6526,
Washington, D.C. 20224.
Do not send any of these forms or
schedules to this address. Instead, see
Where To File on page 1.