IRS approves limited reversion treatment for defined benefit plan contributions

Plain-English summary

The IRS approved a request involving employer contributions to a qualified defined benefit pension plan. It determined that contributions totaling a redacted amount may be treated as disallowed solely for purposes of applying Rev. Rul. 91-4. A return of contributions not exceeding the redacted amount would not adversely affect the plan's qualified status if the reversion occurred within one year after the ruling letter. The ruling did not express an opinion on the accuracy or acceptability of the calculations submitted with the request.

Ruling snapshot

• Question: Could certain employer contributions be treated as disallowed so that a limited reversion would not adversely affect the plan's qualification?
• Outcome: Approved
• Key authorities: IRC § 404; Rev. Proc. 90-49; Rev. Rul. 91-4

Full text (IRS public release)

Significant Index No. 0404.00-00

201233023

Department of The Treasury
Internal Revenue Service
Washington, D.C. 20224

MAR 25 2011

T.E.P.R.A. '82

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, 20 .

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

$ which were made for the plan year commencing January 1, 20 , may be considered as disallowed solely for the purpose of applying Rev. Rul. 91-4. Therefore the return of contributions not exceeding $ 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.

201233023

If you require further assistance concerning this matter, please contact

Sincerely yours,

David M. Ziegler, Manager
Employee Plans Actuarial Group 2