IRS Reminds Us – Keep a Copy of Your Executed Plan Document

The Internal Revenue Service (“IRS”) Office of Chief Counsel released a memorandum on December 13, 2019 (the “Memo”), reminding plan sponsors of the importance of retaining a validly executed plan document. A summary of the memo is set forth below, which focuses on a decision by the Tax Court in Val Lanes Recreation Center v. Comm’r [TC Memo 2018-92], where the court held that the IRS abused its discretion by revoking the tax qualification of the plan. Key takeaways follow, but the bottom line is: Keep a copy of the signed plan documents.

In this Journal of Pension Benefits article, linked below, Groom principal Elizabeth Thomas Dold discusses important 2019 guidance out of the IRS – breaking down the applicable facts, law and IRS perspective to advise plan sponsors to maintain strict signed document policies.

To read the article, click here.