IRS approval 1206022: Return of defined-benefit-plan contributions

Plain-English summary

The IRS approved the return of up to $104,074 in employer contributions to a qualified defined-benefit pension plan. The contributions were made for the plan year beginning January 1, 2008, and could be treated as disallowed solely for purposes of applying Rev. Rul. 91-4. The IRS said the return would not adversely affect the plan's qualified status if it occurred within one year of the letter. The approval was limited to the taxpayer's request and did not express an opinion on the accuracy of submitted calculations or other materials.

Ruling snapshot

• Question: Would returning up to $104,074 in specified contributions adversely affect the plan's qualified status?
• Outcome: Approved
• Key authorities: IRC §§ 404 and 6110(k)(3); Rev. Proc. 90-49; Rev. Rul. 91-4.

Full text (IRS public release)

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

201206022

GOVERNMENT ENTITIES
DIVISION

MAR 25 2011
Re:

Dear:

This letter is in response to your request with respect to the above-referenced defined
benefit pension plan pursuant to Revenue Procedure 90-49 for the plan year
commencing January 1, 2008.

Rev. Proc. 90-49 sets forth the procedure whereby, under certain circumstances, a
disallowance of the deduction of employer contributions to a qualified defined benefit
plan may be obtained; thereby fulfilling a condition under which such contributions
could revert to the employer.

Based on the information submitted, we have determined that contributions totaling
$104,074 which were made for the plan year commencing January 1, 2008, may be
considered as disallowed solely for the purpose of applying Rev. Rul. 91-4. Therefore
the return of contributions not exceeding $104,074 would not adversely affect the
qualified status of the plan, providing this reversion occurs no later than one year from
the date of this letter. In granting this approval, we are not expressing any opinions as
to the accuracy or acceptability of any calculations or other material submitted with
your request.

This ruling is directed only to the taxpayer that requested it. Section 6110(k)(3) of the
Code provides that it may not be used or cited by others as precedent.

When filing Forms 5500 for the plan years commencing January 1, 2008, a copy of

this letter must be attached to the Schedule B. A copy of this letter should be
furnished to the enrolled actuary for the plan. We have sent a copy to your authorized
representative pursuant to a power of attorney on file in this office.


201206022

If you require further assistance concerning this matter, please contact [illegible]

Sincerely yours,

[illegible]

David M. Ziegler, Manager
Employee Plans Actuarial Group 2