Rev. Proc. 84-7

SECTION 1. PURPOSE

This Revenue Procedure obsoletes Rev. Proc. 77-15, 1977-1 C.B. 572, relating to the procedures of the Internal Revenue Service for the adoption of Form 5612, Model Profit-Sharing Plan, Form 5613, Restated Model Profit Sharing Plan, Form 5614, Model Money Purchase Plan, and Form 5615, Restated Model Money Purchase Plan (hereinafter referred to as Model Plans). It also provides that such Model Plans will no longer be considered to automatically meet the requirements of section 401 of the Internal Revenue Code.

SEC. 2. BACKGROUND AND GENERAL INFORMATION

01. Rev. Proc. 77-15, 1977-1 C.B. 572, set forth the procedures for employers who adopt the Service-issued Model Plans described in Section 1 above. That Revenue Procedure provided that determination letters generally would not be issued with respect to the qualification of an employer's adoption of one of those Model Plans. However, it also provided that such a plan would be considered to satisfy the requirements of section 401 of the Code, even though no determination letter was issued, if the adoption met the requirements of the Revenue Procedure.

02. Rev. Proc. 80-30, 1980-1 C.B. 685, contains procedures relating to the issuance of determination letters concerning the qualification of certain individually designed pension, annuity, profit-sharing, stock bonus, and bond purchase plans described in sections 401, 403(a), and 405 of the Code, and the exemption from federal income tax of any related trust.

03. Rev. Proc. 81-19, 1981-1 C.B. 689, modified Rev. Proc. 80-30 to provide for the optional use of Form 6406, Short Form Application for Determination for Amendment of Employee Benefit Plan (Other than Master or Prototype Plans of Self-Employed Individuals), in requesting determination letters on plan amendments to a plan that has previously received a determination letter as to qualification and to provide for the issuance of determination letters on the qualification of the entire plan, as amended, when requested on the appropriate application form.

SEC. 3. OBSOLESCENCE OF MODEL PLANS

Form 5612, Model Profit-Sharing Plan, Form 5613, Restated Model Profit-Sharing Plan, Form 5614, Model Money Purchase Plan, and Form 5615, Restated Model Money Purchase Plan, are hereby obsolete as of the date of publication of this Revenue Procedure.

SEC. 4. INSTRUCTIONS TO TAXPAYERS

01. Employers may not rely on the qualification of any Model Plan adopted after the publication of this Revenue Procedure.

02. An employer who properly adopted a Model Plan before the publication of this Revenue Procedure may continue to rely upon the qualified status of the form of the plan until the earliest of: a) the date the employer modifies the plan or trust, b) the date the employer files an application for a determination letter in accordance with section 4.03 of this Revenue Procedure, or c) the first plan year beginning after December 31, 1983.

03. An employer who adopted a Model Plan before the publication of this Revenue Procedure may file an application with the appropriate Key District Director for a determination as to the qualified status of such plan and any amendments thereto in accordance with the procedures set forth in Rev. Proc. 80-30 as modified by Rev. Proc. 81-19 and this Revenue Procedure. In addition, such employer may use Form 5307 (Short Form Application for Determination for Employee Benefit Plan; see section 4.05 of Rev. Proc. 80-30) if the plan, trust, and amendments are submitted with such application form. Notwithstanding the above, the employer can use Form 6406 in requesting determination letters on Model Plans only after a determination letter has once been issued with respect to all provisions of that plan.

SEC. 5. DETERMINATION LETTERS

Key District Directors will issue determination letters on the qualification under section 401 of the Code of the Model Plans described above and amendments thereto, and on the exemption from federal income tax of trusts forming part of such plans. Applications for such determination letters will be processed in accordance with procedures set forth in Rev. Proc. 80-30, as modified by Rev. Proc. 81-19 and this Revenue Procedure.

SEC. 6. EFFECT ON OTHER DOCUMENTS

01. Rev. Proc. 77-15, 1977-1 C.B. 572, is obsolete and may not be relied upon after the date of publication of this Revenue Procedure in the Internal Revenue Bulletin.

02. Rev. Proc. 80-30, 1980-1 C.B. 685, is modified to remove therefrom sections 2.08 and 15.011 and to permit use of Form 5307 in accordance with the Revenue Procedure.

SEC. 7. EFFECTIVE DATE

This Revenue Procedure is effective the date of its publication in the Internal Revenue Bulletin. However, employers who adopted Model plans pursuant to Rev. Proc. 77-15 may continue to rely on those adoptions during the period described in section 4.02.