IRS Revises Form 5310

Form 5310, Application for Determination for Terminating Plan, has been modified to now include the questions relating to the nondiscrimination requirements of Section 401(a)(4) and the minimum coverage requirements of Section 410(b).   What this means for plan sponsors is it is no longer necessary to file Schedule Q (Form 5300), Elective Determination Requests, with the submission of a revised 5310.

However, Schedule Q should not be put in the round file just yet.   Applicants may continue to file the prior version of Form 5310 through September 30, 2003.   In this case, an applicable Schedule Q version should still be filled out to include the appropriate additional demonstrations or statements with respect to Section 401(a)(4) and Section 410(b) or establish that the plan meets the prior favorable letter conditions in Section 12.04 of Revenue Procedure 2003-6.

Additionally, applicants that decide to file the newest revision of Form 5310 may still choose to file Schedule Q to broaden the scope of the determination letter to address other nondiscrimination requirements.

>With respect to defined benefit plan terminations, Form 6088, Distributable Benefits From Employee Pension Benefit Plans, is still required to be filed with the revised Form 5310.

Form 5310 and Revenue Procedure 2003-6 can be found at  http://www.irs.gov/pub/irs-pdf/f5310.pdf  and  Revproc2003-6.pdf , respectively.