June 13, 1989
TO: PENSION MEMBERS NO. 30-89
RE: IRS ANNOUNCEMENT CONCERNING UPCOMING MODIFICATIONS
TO REVENUE PROCEDURE 89-9
__________________________________________________________
Attached is a copy of IRS Announcement 89-79, concerning
upcoming modifications to Revenue Procedure 89-9, which describes
the procedure for obtaining IRS opinion letters for master and
prototype plans. (See Institute Memorandum to Pension Members
No. 7-89, dated February 8, 1989.)
According to the announcement, Revenue Procedure 89-9 will
be amended to expand the circumstances under which master and
prototype plans may provide for after-tax employee contributions.
Revenue Procedure 89-9 originally permitted such contributions
only if the plan included a qualified cash or deferred
arrangement under section 401(k) or if the plan was a master plan
that designated the sponsoring organization as plan
administrator. This rule will be expanded to allow after-tax
contributions if the basic plan document designates the prototype
plan sponsor as plan administrator.
The announcement also states that the IRS will accept
applications from nonintegrated, nonstandardized master and
prototype plans that base plan contributions or benefits on less
than total compensation as defined in section 414(s) of the Code.
We will keep you informed of further developments.
Kathy D. Ireland
Assistant General Counsel
Attachment