An employer that amends any provision of an M&P plan or its adoption agreement (other than to choose among the options offered by the sponsor if the plan permits or contemplates such options), or an employer that chooses to discontinue participation in such a plan as amended by its sponsor and does not substitute another approved plan referred to in this section is considered to have adopted an individually-designed plan
Revenue Procedure 2003-6, Revenue Procedure 2000-6
Additional Helpful Information
- Individually designed plan offer the employer more flexibility when designing features, benefits and eligibility requirements.
- Form 5300, Application for Determination for Employee Benefit Plan, must be filed to request a determination letter for individually designed plans, including collectively bargained plans.
- Form 6406, Short Form Application for Determination for Minor Amendment of Employee Benefit Plan, may be filed to request a determination letter on a minor plan amendment of individually-designed plans
- An application submitted by an employer with respect to an M&P plan will be treated as an application for an individually-designed plan if it is submitted prior to the time the M&P plan is approved.
- An employer that maintains a SEP along with another retirement plan, cannot use the IRS model SEP. The employer must adopt either a prototype SEP or an individually designed SEP.