More Time for Retirement Plan Tasks in 8 States
July 14, 2010
The IRS is providing administrative relief for sponsors of defined contribution plans, such as section 401(k) plans, that were affected by the storms and other severe weather in those counties in eight states that were declared Presidential Disaster Areas during the period from March 1 through May 31, 2010.
The states are:
* New Jersey,
* Rhode Island,
* Tennessee and
* West Virginia.
IRS Notice 2010-48 administratively extends to July 30, 2010, the April 30 deadline for restating affected pre-approved defined contribution plans. If applicable, the notice also extends the deadline for submitting determination letters to the IRS, to July 30, 2010. In addition, the section 401(b) remedial amendment period for these retirement plans is extended to July 30.
The relief provided by this notice is on top of the statutory relief already provided by the IRS, under section 7508A of the Internal Revenue Code, to taxpayers affected by the federally declared disasters in these eight states during the period from March through May 2010.
The IRS guidance details the scope of the relief provided by this administrative action and further defines the conditions under which a plan qualifies as an affected plan.
A plan is an "affected plan" only if any of the following locations relating to the plan were in the federally declared disaster areas at the time of the severe weather:
1. The principal place of business of the employer that maintains the plan;
2. The principal place of business of the employer that employs more than 50 percent of the active participants covered by the plan;
3. The office of the plan or the plan administrator;
4. The office of the primary record keeper serving the plan; or
5. The office of any advisor that had been retained by the plan or the employer at the time of the storms or other severe weather that is directly involved with the adoption of the plan or the submission of a determination letter application to the IRS.
This relief applies to the following disaster situations:
* Connecticut victims of March 2010 severe storms and flooding. Click here to read about the specific counties involved.
* Tennessee victims of April through May 2010 severe storms and flooding. Click here for the counties and more information.
* Alabama victims of April 2010 severe storms and flooding. Here are the counties and dates involved.
* Mississippi victims of April 2010 severe storms, tornadoes and flooding. Click here for the counties and other information.
* Massachusetts, New Jersey, Rhode Island and West Virginia victims of March 2010 storms, mudslides, landslides and flooding. (Click on your state for the counties and dates announced by the IRS.)
For more information about how to proceed, consult with your Perelson Weiner partner.
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