IRS Issues Revenue Procedure on Preapproved Plans

On June 30, 2017, the IRS released Revenue Procedure 2017-41, which lays out revised procedures for obtaining opinion letters for preapproved plans, including ESOPs. Currently, an ESOP is available only to plan sponsors in the form of an "individually designed plan" that is submitted to the IRS for an individual favorable determination letter. Under the new program, document providers (such as law firms and other practitioners) may submit an ESOP document to the IRS for an opinion letter that "pre-approves" the qualified status of the plan document. Document providers may submit an ESOP document to the IRS between October 2, 2017, and October 1, 2018. More about this new program will follow for members in the next NCEO newsletter.