The suggested language for a wide variety of plan provisions is contained in the IRS Defined Contribution Listing of Required Modifications and Information Package (LRM) [8-2005] which officials posted to the IRS Web site on Monday.
According to the IRS, the 119-page LRM language satisfies the tax code as amended through the Job Creation and Worker Assistance Act of 2002. The latest guidance replaces the 3-2005 information package and the 6-2005 revisions to DC LRM#49, the IRS said.
“Such language may or may not be acceptable in different plans depending on the context in which used,” officials cautioned in the document. “We have prepared this package to assist sponsors who are drafting or redrafting plans to conform to applicable law and regulations, and we hope that it will be a key factor in enabling us to process and approve master and prototype plans more quickly.
IRS also noted that LRMs on the issue of cross-tested, profit-sharing plans are still currently under revision.
The new LRM is here .