IRS Provides More Details of DB Funding Status Election

An IRS news release said Revenue Procedure 2009-43 lays out in a step by step approach how and when the 432 election can be reversed. Tax officials cautioned that notice under section 432(b)(3)(D) of the plan’s actual certified status for the election year must be provided no later than 30 days after the request for revocation is submitted.

Further, the IRS said, plan sponsors must have complied with the requirements of section 432(d)(1)(A) and (B) or section 432(f)(4), as applicable, during the plan’s funding plan adoption period or rehabilitation plan adoption period, determined as though a section 204 election had never been made.

A revocation request that is eligible for automatic approval under section II above must be signed by an authorized trustee who is a current member of the board of trustees that is the plan sponsor and a copy of the plan’s section 204 election must be attached, the tax agency said.

The process is part of a procedure addressed in the Worker, Retiree, and Employer Recovery Act of 2008, that provides, in part, funding relief for multiemployer plans in endangered or critical status.

The IRS said it may okay requests for revocations in other circumstances but added that such requests are not eligible for automatic approval under the revenue procedure distributed Wednesday. They must instead be made in accordance with Rev. Proc. 2009-4, 2009-1 I.R.B. 118, the IRS said.

The request for revocation must be mailed to the:

Internal Revenue Service

EPCU

Group 7602

SE:TEGE:EP

Room 1700 – 17th Floor

230 S. Dearborn Street

Chicago, IL 60604

The request for revocation may not be submitted electronically.

The new procedure is available here .