Lori Shannon and Monica Novak’s Revenue Procedure Alert Referenced in Wealth Management

Employee Benefits and Executive Compensation counsel Lori Shannon and associate Monica Novak were quoted in a Wealth Management article titled, “What Your Plans Need to Know about Revenue Procedure 2016-37.” The article discusses the IRS-issued Revenue Procedure 2016-37, which goes into effect January 1, 2017. The new procedure means that the IRS will now generally issue determination letters to new plans, terminating plans and, only under special circumstances, to existing plans.

While Lori notes that the procedure is an important change because a plan sponsor can no longer receive an updated letter after amending its plan based on cycle or law change, she also states that this should not be a significant hurdle in ongoing compliance for individually designed plans due to the new Required Amendments List and Operational Compliance List to be provided by the IRS.

“I think that plan sponsors can take advantage of those (lists) on an annual basis and despite these other changes to the program, gain some level of comfort that their documents are in good shape and operationally they’re taking care of what they should take care of,” Lori said.

The article also references Lori and Monica’s Client Alert regarding Revenue Procedure 2016-37 key points – “A Whole New World for Qualified Plans: Revenue Procedure 2016-37.” The Alert notes the IRS’s Required Amendments List — an annual list of disqualifying provisions that arise from changes in qualification requirements—and Operational Compliance List – an annual list which will identify changes in operational qualification requirements that take effect during a calendar year.

Read “What Your Plans Need to Know about Revenue Procedure 2016-37“ in Wealth Management.

Read “A Whole New World for Qualified Plans: Revenue Procedure 2016-37” on the website.