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Home My WebLink About750465.tiff Address any reply to: 300 E.8th St., Austin, Tex. 78701 Depw D1 ent ©11ao4u 7W This determination letter will not be effective for plan years beginning after December 31, 1975. 3 31tu @ SOP@ChIOP internal Revenue Sera ce Date: In reply reler to: ,y% 3 1975 }E:EP: 1004:DKL:ec Weld County, Colorado P. 0. Box 758 Greeley, Colorado 80631 Gentlemen: Name of Plan: Weld County Retirement Plan Name of Trust: Weld County Retirement Trust Application Form: 4573 Dated: 9/29/75 • Date Adopted: Date Amended: 7/30/75 Based on the information supplied, we have made a favorable determination on your application identified above. Continued qualification of the plan will depend on its effect in operation as well as its present form. See section 1.401-1(b) (3) of the Income Tax Regulations. The enclosed Publication 794 describes some events that could occur after you receive this determination letter that would automatically nullify it without specific notice from us. The publication also provides information about filing requirements, the effect of determination letters and plan operations, and the deductibility of contributions. The status of the plan in operation will be reviewed periodically. If your application covered an amendment only, this letter is an opinion only as to whether the amendment submitted affects the existing status of the qualification of the plan and exemption of the trust . It is not a determination on the continued qualification of the entire plan. This letter relates only to the status of your plan under the Internal Revenue Code. It is not a determination regarding the effect of other Federal or local statutes. Please keep this letter in your permanent records. Sincerely, Robert M. McKeever Enclosure District Director 750465 73) DDS(. Favorable Determination Publication 794 Letter (Rev. 1-75) Effect Under Sections 401, 405(a), or 501(a) of the Internal Revenue Code This publication describes some events that could feitures prinicipally to the benefit of officers. shareholders, nullify the favorable determination letter. supei visors. and highly compensated employees, our favorable determination letter will not apply. Operation of the plan in subsequent years These few examples are not the only developments in Rev. Proc. 72-6, 1972-1 C.B. 710, 712, and Rev. Rut, operation that could cause a plan to lose its qualified 69-24, 1969-1 C.B. 110, Ill, provide, in part, that; status. . . While a favorable determination letter may serve as a basis for determining deductions for employer General contributions thereunder, it is not to be taken as an . If the determination was made from a copy of the indication that contributions are necessarily deductible plan or amendment and the copy was not signed or as made. Such determinations can be made only upon dated, you must furnish us a signed and dated copy of an examination of the employer's tax return, in accord- the plan or amendment for the determination letter to be ance with the limitations and subject to the conditions effective. of section 404 of the Code. . . . . A determination letter issued with respect Requirements for filing returns to the qualification of a plan under section 401(a) of the Employers must file either Form 4545. Annual Em- Code. is based on the information furnished by the plover's Return for Employees' Pension or Profit-Sharing employer. . . . The wording contained within the tour , corners of a written document may spell out a theoreti- f 'r'ns, and h required 10)atPans f Sr Form 4848A, Return for Keogh (H.R. Plans of Sole Proprietors and of cally qualified plan which may or may not materialize Partnerships With Owner-Employees. in actual operation. For example, a plan may be open The fiduciary must file Form 990-P, Annual Return to all employees who have one year of service and who will be entitled to pensions commencing at normal of Fiduciary of Employees' Pension or Profit-Sharing Trust, and required attachments. In addition, the follow- retirement age 65 only if they remain with the employer until that age and have at least 10 years of service at ing terms may also be required: retirement. Form 990-T, Exempt Organization Business Income "Such provisions have been found acceptable in Tax Return, if unrelated business income was real- certain cases, and favorable determination letters have ized' been issued. . . . A high rate of service separations, how- Form NV-2P, Statement for Recipients of Annuities, ever, may leave relatively few of the lower paid employees Pensions, or Retired Pay. but practically all of the officers, shareholders, super- Form I099R, Statement for Recipients of Lump- visors, and highly compensated employees in the plan, Sum Distributions from Profit-Sharing and Retire- resulting in discrimination in favor of the latter group. ment Plans. Thus, in operation. such a plan does not meet the require- Form W-3, Transmittal of Income and Tax State- ments of section 401(a) of the Code for some part or ments. all of the period of its operation, . . ." Form W-3P, Annual Report by Certain_Payers of In view of the above, if coverage is based on the Annuities and Lump-Sum Distributions. percentage requirement of section 401(a)(3)(A) of the The part of the insurance premiums paid for life Code and this requirement is not met in some years insurance protection is considered income to the em- following issuance of the favorable determination letter, ployee in the year in which the premium is paid and the taxpayer may no longer rely on the letter. must be reported on Form 1099R if paid by the fiduciary, Similarly. if coverage is based on the requirement of or on Form W-2 if paid by the employer. section 401(a)(3)(B) of the Code and the coverage Every fiduciary and trust must have an employer iden- of employees in the lower and middle compensation tilieation number, regardless of whether it has any em- ranges is reduced materially in any subsequent year from ployees. Show this number in the space provided on all that in your application, our favorable determination Federal returns filed and refer to it on all correspondence letter will not apply. with the Internal Revenue Service. If the fiduciary or trust A plan will be considered as meeting these coverage does not have such a number and has not applied for requirements during the whole taxable year if on any one, file Form SS-4, Application for Employer Identifica- one day of each quarter it satisfies these requirements. tion Number, with the appropriate Internal Revenue If employee turnover results in the allocation of for- Service Center. • •WM x�.N l 1^ ..i • " 1�'.n A„M >~':1 ft 'r /�' ;"� 0. .. ^ 'iM� �" �r .Y k l . �. urn , .t t Hello