If you maintain a qualified retirement plan, such as a 401(k) or
pension plan, that covers more than 100 employees, you are likely
in the midst of your annual plan audit. During this process, your
auditor might ask for a copy of your updated IRS determination
letter, leaving you to wonder: How do I answer that question? And,
should I be getting an updated letter?
While those are sensible thoughts, a better question is, can you
even get one?
As a reminder, an IRS letter is obtained when a qualified
retirement plan is filed with the IRS, which then checks the plan
to ensure that all legally required provisions are included. If the
IRS is satisfied with the terms of the plan document, it will issue
some type of letter on that plan. There are two categories of
retirement plans, and the types of letters they can receive, and
their ability to receive them, varies.
