HomeMy WebLinkAbout881361.tiff !eternal Revenue Service Department of the Treasur
Digtrict Director
1100 COMMERCE STREET
DALLAS, 75242
APR 0 5 1988 Employers Identi6ication Numbers:
Date: 84-6000813
File Folder Number:
WELD COUNTY 840001884
C/O DONALD MAZANEC Person to Contact:
MERCER MEIDINGER HANSEN INC EP TECHNICAL ASSISTOR
1700 LINCOLN STREET SUITE 3300 Contact Telephone Numbers:
DENVER, CO 80203 (214) 767-1204
Plan Name:
WELD COUNTY RETIREMENT PLAN
Plan Numbers: 001
Dean Applicant
Based on the in60nmation supplied, we have made a 6avonable determination
on your application identi6ied above. Please keep this letter in you& perma-
nent &eco&ds.
Continued quati.6ication 06 the plan will depend on its e66ect in operation
under its present 6onm. (See section 1.401-1 (6) (3) 06 the Income Tax Regula-
tions. ) The status 06 the plan in operation will be reviewed period tally.
The enclosed document deecntbeo the impact 06 Notice 86-13 and some events
that could occult a6tet you receive this letter that would automattcalty nutti6y
i₹ without apeci6ic notice 6rom us. The document also explains how operation
06 the plan may a66eet a 6avonable determination letters, and contains in6onma-
tton about 6iling requi&ements.
This letters relates only to the status 06 yours plan under the Internal
Revenue Code. It to not a determination &eganding the e66ect 06 othen Federal
on local statutes .
This determination ezpnessee an opinion on whether the amendment(s ) , in
and 06 iteel6 (themselves ) , a66ect(o ) the continued quaLL6ied etatuo 06 the
plan under Code section 401 and the exempt status 06 the related trust under
section 501 (a) . This detenminatton should not be conotrsued as an opinion on
the quali6ication 06 the plan as a whole and the exempt status o6 the &elated
trust as a whole.
We have sent a copy 06 this lette& to you& nepnesentative as indicated in
the powers 06 attorney.
Yours plan does not ptovtde bon contributions on behal6 06 pantteipants not
employed on the alloeation _dg.$e. The pnoviaEon may, in operation, diseni,minate
in 6av0n o6 employees who one stockholders , 0b6teerss on highly compensated.
16 this dLo cnimination ()COWLS , gout plan will not remain quali6ied. (See Rev.
Rut. 76-250, 1976-2 C.B. 124. )
881361
PEOoIIc
-2-
WELD COUNTY
Ii you have any queetiona concennLng thi,a matter, pleaee contact the
pen.aon whoa name and telephone number ace ehown above.
11 Since/Lay y0W4,
44...40. - ---
Glenn Cagle
DLa t'i ct DLnecton
Enc2oeunea :
Publication 794
OPWBP 575
-3-
WELV COUNTY
This detenmi,natton letters u applicable bon the amendments adopted on July
21 , 1987 and July 22, 1987.
r
r( ' Department of the Treasury Introduction plan. The letter will cease to apply when the de
to-
Internal Revenue Service This publication explains the effect of the Tax fact in coverage arises.
��' Reform Act of 1986 upon your determination A plan is considered as meeting these re
letter,points out some operational features that quirements for the whole plan yew if it meets
'ublication 794 may affect the qualified status of your employee the requirements on at least one day of each
benefit plan,and provides information on the quarter of that year.
(Rev. November 1986) reporting requirements for your plan. Allocation of forfeitures. If employee turnover
results In the allocation of forfeitures principally
Tax Reform Act of 1986 to officers,shareholders,and highly conven-
able sated employees,a favorable determination let-
Q�V�Qi�/�r The following paragraph describes the basis ter will cease to apply.
on which your determination letter was issued.
;Deksmnation h is an Integral pan of your letter. Reporting Requirements
s fir%/ The provisions of Notice 86-13 apply to your Most plan administrators or employers who
plan.This notice states that determination let- maintain an employee benefit plan must file en
Let jr tare issued to you consider only the law in ef- annual return/report with the Internal Revenue
fact before the passage of the Tax Reform Act Service. The following forms should be used for
of 1986.However,any qualification require- this purpose:
ments as changed by the new law that have Form 5508EZ—generally for a"One-Participant
been considered after this notice was issued Plan,"which is a plan that covers only: 1
an
will be specifically stated on the determination individual, or an individual and his orer)
letter.
spouse who wholly own a business,whether in-
corporated or not;or(2)partinr(s)in a partner-
How to Use a Favorable ship or the partner(s)and the partner's spouse.•
Determination Letter If Form 55nncZ cannot be used,the one-par-
ticipant plan should use Form 5500-C or
A favorable determination letter provides the 5500-R,whichever applies.
employer with a basis for deducting contribu- Form 5500—for a pension benefit plan with 100
tions to an employee benefit plan.Whether a or more participants at the beginning of the
plan qualifies is determined from the informs- plan year.
tion in the written plan document and the sup- Form 5500-C—for a pension benefit plan with
porting information submitted by the employer. more than one but fewer than 100 participants
A favorable determination letter indicates that at the beginning of the plan year.
the terms of the plan conform to the require Form 5500-R—for a
mans of section 401(a)of the Internal Revenue benefit 0 more than one but f than t pa
rticipants plan
Code. anh
at the start of a plan year for which Form
•
Amendments to the plan.A favorable determi- 5500-C is not filed.
nation letter may no longer apply If there is a Nofe. Keogh(H.R. 10)plans we required to
change in a statute, regulation, or revenue rul- file an annual return even if the only partici-
ing applicable to the qualification of the plan. pants are owner-employees.The term"owner-
However,the determination letter will continue employee"includes a partner who owns more
to apply for years before the effective date of than 10%interest In either the capital or profits
the statute,regulation, or revenue ruling. If the of the partnership.This applies to both defined
letter no longer applies to the plan,the plan contribution and defined benefit plans.
must be amended to comply with the new re- When to 8th.Forms 5500 and 5500EZ must be
_ quirements to maintain its qualified status. filed annually.Form 5500-C must be filed for(I)
__ _ —. Generally,if a regulation changes,the the initial plan year,(II)the yew a final re-
amendment must be adopted by the end of the turn/report would be filed,and(iii)at three-
-- first plan year beginning after the adoption date year intervals.Form 5500-R must be filed in the
of the regulation.Generally, if a revenue ruling years when 5500-C is not filed.However,
changes,the amendment must be adopted by 5500-C will be accepted in place of 5500-R.
-= the end of the first plan year beginning after the For more information,see Publication 1048, RI-
-= publication date of the revenue ruling.The ing Requirements for Employee Benefit Plans.
amendment must be effective not later than the Disclosure.The Internal Revenue Service will
first day of the first plan year beginning after process the returns and provide the Depart-
the revenue ruling is published. However, if cer- ment of Labor and the Pension Benefit Guar-
" fain requirements are satisfied,the amendment anty Corporation with the necessary
- - may be adopted retroactively atter the close of information and copies of the returns on micro-
------ that year. For further information on retroactive film for disclosure purposes.
-- =_ amendments,see Rev. Rut.82-66, 1982-1
-- - —= C.B.61.
- Plan Must Qualify
in Operation
_ Generally,a plan qualifies in operation it it is
maintained according to the terms on which the •
=_= favorable determination letter was issued.How- ,
_ __— ever,conditions may develop in operation that
__- do not follow the written plan document,and
-• - __-- = they may jeopardize the plan's qualification. Ex-
amples of common operational features that ad-
versely affect a favorable determination are:
Not meeting coverage requirements. If a plan
• ` satisfies,wit the coverage requirementse e a of section
410,when the favorable determination letter is
received, by meeting either the percentage test
under section 410(bX1 XA)or the classification
. test under section 410(bX1)(B),but the plan
fails to meet the coverage requirements In op-
eration,the letter will no longer apply to the a u.5.G.Ro.. 19x7 -181-457/62256
e
"U.S. Department.of Labor =_ .. _ e. ,
iset�
To: Administrators of Employee Pension
and Welfare Benefit Plans
The Employee Retirement Income Security Act of 1974 (ERISA)
requires administrators of employee pension benefit plans
(pension, profit sharing and other plans that provide retire-
ment income to employees or result in a deferral of income by
employees for periods extending to the termination of covered
employment or beyond) , and employee welfare benefit cplans
(medical, surgical, hospital, sickness, accident, disability,
death, unemployment, vacation, training, scholarship funds,
prepaid legal services, etc. ) to meet certain reporting and
disclosure requirements. Within 120 days after a new plan comes
into existence, plan administrators are to file a summary plan
description (SPD) with the Secretary of Labor. A summary 'plan
description also must be provided to each plan participant and
beneficiary within 120 days after the establishment of a plan.
However, certain fully insured welfare plans with fewer than 100
participants are exempt from the requirement to file a summary
plan description with the Secretary'.
For further information about the summary plan description and
other reporting and disclosure requirements of ERISA, contact
the nearest Area Office of the Labor Department's Office of
Pension
and Welfare Benefit Programs {see list on reverse side) .
Alan D. Lebowitz
Acting Administrator
Office of Pension and
Welfare Benefit Programs
OPWBP 515 (4/85)
..
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