IRS Updates Determination Letter and VCP Submission Information

The IRS has issued Revenue Procedure (Rev. Proc.) 2023-4, which updates guidance on determination letter submission procedures. Changes from the prior year Rev. Proc. 2022-4 include the following.

  • Sections 6, 8, 9, 10, 11, 19, and 20 and Appendix B have been revised to provide the procedures for obtaining a determination letter with respect to a § 403(b) individually designed plan, beginning June 1, 2023. Appendix A adds user fees for these submissions.
  • Sections 6.02 and 16 are revised to provide that Form 5307, Application for Determination for Adopters of Modified Nonstandardized Pre-Approved Plans, and Form 5316, Application for Group or Pooled Trust Ruling, may be submitted electronically beginning June 1, 2023, and must be submitted electronically beginning July 1, 2023, including payment of the user fee.
  • Sections 3 and 31 and  Appendix A reflect the temporary suspension of the opinion letter program for prototype IRAs (Traditional, Roth and SIMPLE IRAs), SEPs (including salary reduction SEPs (SARSEPs)), and SIMPLE IRA plans.
  • Section 02 of this revenue procedure reflects changes to the scope of determination letters.
  • Appendix A has been modified to increase certain user fees.

A new Appendix G has been added which provides a checklist for applications for nonbank trustee approval letters.