Prepared By: Patricia K.
Keesler
Benefits Law Group
Atlanta, Georgia
The IRS announced, in Rev. Proc. 2001-55, a further extension of the GUST remedial amendment period for all qualified retirement plans until February 28, 2002, if the amendment period would have otherwise ended before that date. This extension applies for purposes of all disqualifying provisions of new plans adopted or effective after December 7, 1994, and for purposes of all plan amendments adopted after December 7, 1994, that would cause an existing plan to be disqualified. The February 28, 2002, deadline also applies to government and nonelecting church plans.
The Rev. Proc. also extends the period for plans directly affected by the September 11, 2001, terrorist attack to June 30, 2002. A plan is considered “directly affected” by the attack, if any of the following are located in New York City, borough of Manhattan, south of 14th street:
§ The principal place of business of the employer;
§ The office of the plan administrator;
§ The office of the primary record keeper; or
§ The office of an attorney, actuary or CPA, or other advisor retained by the plan.
A plan is considered “directly affected” by the attack, if any of the following individuals were injured, killed or is missing due to the attacks:
§ An individual required to approve plan amendments;
§ The plan administrator; or
§ An attorney, actuary or CPA, or other advisor retained by the plan.
Employers that do not fit the above criteria may also request to be treated as “directly affected” by the September 11, 2001, attacks by making an application to the IRS for this purpose. The IRS has also indicated it will consider requests for grants of additional extensions of GUST to a particular plan up to December 31, 2002, on a case-by-case basis, for a substantial hardship.
The Rev. Proc. also extends the deadline by which an employer must adopt a prototype or volume submitter plan, or certify its intent to adopt such plan, to be eligible for the GUST extension to December 31, 2002.