Common use of RELIANCE ON OPINION LETTER Clause in Contracts

RELIANCE ON OPINION LETTER. This is a “standardized” pre-approved plan. You may rely on the opinion letter issued by the Internal Revenue Service as evidence that your Plan is qualified under Section 401 of the Internal Revenue Code except to the extent provided in Section 7.01 of Revenue Procedure 2017-41. You may not rely on the opinion letter in certain other circumstances or with respect to certain qualification requirements, which are specified in Section 7.03 of Revenue Procedure 2017-41. If you have ever maintained or later adopt any plan (including a welfare benefit fund as defined in Section 419(e) of the Internal Revenue Code, which provides post-retirement medical benefits allocated to separate accounts for key employees, as defined in Section 419A(d)(3) of the Internal Revenue Code or an individual medical account, as defined in Section 415(1)(2) of the Code) in addition to the Plan, you will not be able to rely on the opinion letter issued by the Internal Revenue Service for the Pre-Approved Plan with respect to the requirements of Sections 415 and 416 of the Internal Revenue Code. You will not be considered to have maintained another plan merely because you maintained another defined contribution plan, provided that (i) the other defined contribution plan terminated before the effective date of the Plan and (ii) no annual additions were credited to the account of any participant under such other plan within a limitation year of the Plan. If you adopt or maintain multiple plans and you wish to obtain reliance with respect to the requirements of Sections 415 and 416 of the Internal Revenue Code, you must apply to Employee Plans Determinations of the Internal Revenue Service for a determination letter with respect to your Plan. Failure to properly complete the Adoption Agreement and failure to operate the Plan in accordance with the terms of the Plan document may result in disqualification of the Plan.