In Revenue Procedure 2002-35 the IRS says that eligible qualified retirement plans that haven’t made GUST changes will be considered as having done so by filing the determination letter application and customary fee by September 3, and paying an additional fee of:
- $1,000 for plans with up to 100 participants
- $3,000 for plans with 101 to 1,000 participants
- $10,000 for plans with 1,001 or more participants
Plans were required to adopt GUST amendments and to apply for a determination letter by the last day of the first plan year after January 1, 2001. The IRS extended the deadline until February 28, 2002 and until June 30, 2002 for companies affected by the September 11 terrorist attacks.
Plans that haven’t implemented amendments for law changes other than GUST are not eligible to avoid disqualification using this procedure, the IRS said.
Determination letter user fees and the new fee for nonfilers should be paid using separate checks or money orders.
Employee Plans Compliance Resolution System procedures will continue to apply to late amended plans, the IRS said.
The EPCRS would offer the only alternative for late amenders to avoid disqualification, and fees under EPCRS would generally be higher than those set in Revenue Procedure 2002-35, the IRS said.