IRS Increases User Fees for Various Qualified Retirement Plan Filings

The IRS has provided an early release of increases to user fees for certain letter ruling and determination letter requests submitted with Employee Plans Rulings and Agreements that are scheduled to take effect on January 4, 2021.

Typically, user fees are announced in the IRS’s annual updates to its revenue procedures. However, for 2021, the IRS is giving advance notice of several fee increases affecting employee plans. Employers may wish to submit determination letter requests before the end of this year to take advantage of the lower 2020 filing fees.

According to IRS Announcement 2020-14, user fees for the following types of letter ruling and determination letter requests will increase in 2021 as follows:

User Fee Type Current User Fee New User Fee eff. 1/4/21
Letter ruling request for five-year automatic extension of the amortization period $1,000 $6,500
Form 5300 (Application for Determination for Employee Benefit Plan) $2,500 $2,700
Form 5307 (Application for Determination for Adopters of Modified Volume Submitter Plans) $800 $1,000
Form 5310 (Application for Determination for Terminating Plan $3,000 $3,500

 

These user fee increases will be included in the IRS’s annual revenue procedure (Rev. Proc 2021-4), which is scheduled to be published in Internal Revenue Bulletin 2021-1 on January 4, 2021. 

We help our clients stay on top of the legislative and regulatory changes that apply to their businesses, and we ensure that their benefit plans and processes are updated and compliant. To learn more, call our team today at 678-439-6236.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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