IRS updates determination and opinion letter procedures for 2025

IRS’s annual update to procedures for requesting determination letters, opinion letters and private letter rulings contains few substantive changes. Besides making routine revisions for dates, cross-references and citations to other revenue procedures, Rev. Proc. 2025-4 makes several changes to the procedures for requesting preapproved plan opinion letters:
- The revenue procedure has new references to Rev. Proc. 2023-37, which consolidates the rules for requesting opinion or determination letters for preapproved qualified and Internal Revenue Code Section 403(b) plans.
- Rev. Proc. 2025-4 also incorporates the guidance in Announcement 2024-38, which says the employer adoption window for Cycle 2 403(b) plans runs from Jan. 1, 2025, through Dec. 31, 2026.The announcement also confirms that the “restatement rule” continues to apply when preapproved plans are restated using a new preapproved plan document (the rule says an amendment adopted before the restatement will remain in effect, provided the plan is operated in a manner consistent with the amendment).
- Payment of user fees for preapproved plan submissions must be made through www.pay.gov.
Rev. Proc. 2025-4 makes no increases to 2024 user fees. However, a reduced fee of $10,000 applies to a letter ruling request for a funding method or actuarial assumption change for a defined benefit pension plan (the fee for most other letter rulings is $12,500).
Related resources
Non-Mercer resources
- Rev. Proc. 2025-4 (IRS, Dec. 30, 2024)
- Announcement 2024-38 (IRS, Nov. 22, 2024)
- Rev. Proc. 2023-37 (IRS, Nov. 21, 2023)
Mercer Law & Policy resources
Links to any resources on Mercer Link are accessible to Mercer consultants. Clients and prospects may contact their consultants for copies or access 2019 and later GRISTs via the Law & Policy Group’s webpage.
- IRS announces Cycle 2 preapproved 403(b) plans and other guidance (Dec. 19, 2024)
- IRS changes more preapproved plan amendment timing rules (May 2, 2024)
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