5300 (Schedule Q) Instructions {5300} | Pdf Doc Docx | Official Federal Forms

 Official Federal Forms /  Department Of Treasury /
5300 (Schedule Q) Instructions {5300} | Pdf Doc Docx | Official Federal Forms

5300 (Schedule Q) Instructions {5300}

This is a Official Federal Forms form that can be used for Department Of Treasury.

Alternate TextLast updated: 11/12/2010

Included Formats to Download
$ 21.99

Description

Instructions for Schedule Q (Form 5300) (Rev. January 2010) Elective Determination Requests Section references are to the Internal Revenue Code unless otherwise noted. Department of the Treasury Internal Revenue Service What to Complete If you elect to use this form, complete all lines unless otherwise directed. Note. Applicants requesting specific determinations are required to submit demonstrations showing how their plans satisfy the minimum participation, coverage, and nondiscrimination requirements, as applicable. The demonstrations are explained in these instructions. Information or computations used for more than one purpose may not be cross-referenced but must be repeated for each applicable demonstration. · A request for a description of the gateway requirements under Regulations section 1.401(a)(4)-8 has been added. See Cross-Tested Plans Only under Demo 6 - General Test. · Due to processing requirements, fillable fields (plan sponsor, EIN, and name of plan) are now limited to a certain number of characters, including spaces. What's New General Instructions Specific Instructions Purpose of Schedule Schedule Q (Form 5300) allows you to indicate whether you wish certain qualification requirements relating to minimum participation, coverage, and nondiscrimination to be considered by the IRS in its review of your plan in conjunction with an application for determination letter. Minimum Participation, Coverage, and Nondiscrimination Requirements Line 1. If "Yes" is checked, attach Demo 1 to show how a plan using the qualified separate lines of business rules of section 414(r) satisfies the gateway test of section 410(b)(5)(B) or satisfies the special rules for employer-wide plans. See Guidelines for Certain Demonstrations on page 2. Note. If a request for an administrative scrutiny determination on any separate line of business of the employer is pending with the IRS, submit a copy of the confirmation receipt issued by the IRS with the application. Line 3. Determination letters generally do not provide reliance that benefits, rights, and features under a plan satisfy the nondiscriminatory current availability requirement of Regulations section 1.401(a)(4)-4(b). Answer "Yes" only if you are requesting a determination that any specified benefit, right, or feature meets the nondiscriminatory current availability requirement of Regulations section 1.401(a)(4)-4(b). If "Yes" is checked, attach Demo 3 to provide a demonstration for each benefit, right, and feature you wish considered. Also see Guidelines for Certain Demonstrations on page 2. Line 4. Check "Yes" and attach Demo 4 if any of the following apply. 1. The plan is restructured into component plans under Regulations section 1.401(a)(4)-9. Cat. No. 22189C Who May File The use of this form is optional. However, filers of Form 5300, Application for Determination for Employee Benefit Plan; Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans; and Form 5310, Application for Determination for Terminating Plan, may elect to complete and file Schedule Q (Form 5300) with their application to broaden the scope of a determination letter by requesting determinations for certain coverage and nondiscrimination requirements that are not routinely addressed in conjunction with an application for a determination letter. Note. If Schedule Q is not filed, the determination letter issued for this plan will not be considered and may not be relied upon with regard to the general test and certain other provisions under section 401(a)(4), the average benefit test under section 410(b), and the definition of compensation provisions of section 414(s). 2. The plan is disaggregated because: a. The plan includes a section 401(k) or 401(m) plan and a portion that is not a section 401(k) or 401(m) plan, b. The plan includes an ESOP and a portion that is not an ESOP, c. The employer applies section 410(b) separately to the portion of the plan that benefits only employees who satisfy age and service conditions under the plan that are lower than the greatest minimum age and service conditions permissible under section 410(a), d. The plan benefits employees of more than one qualified separate line of business (unless the plan is tested under the special rule for employer-wide plans in Regulations section 1.414(r)-1(c)(2)(ii)), e. The plan benefits the noncollectively bargained employees of more than one employer, or f. The plan benefits both collectively bargained and noncollectively bargained employees. 3. The plan is permissively aggregated with another plan under Regulations section 1.410(b)-7(d). Note. If you are requesting a determination that the plan satisfies the average benefit test of section 410(b) or the nondiscrimination requirements of section 401(a)(4) and if any of the conditions above apply attach a Demo 4. See Guidelines for Certain Demonstrations on page 2. Also, see the instructions for line 9 for additional information that may be required in Demo 4. Line 5. This line is a request for a determination that the plan satisfies the minimum coverage requirements of section 410(b) due to satisfying the average benefit test of Regulations section 1.410(b)-2(b)(3). If a determination regarding the average benefit test is being requested, check "Yes" and see instructions for Demo 5 under Guidelines for Certain Demonstrations. This determination relates only to the satisfaction of the requirements of section 410(b). This determination is mutually exclusive of any determination that the plan may satisfy section 401(a)(4). If the plan must satisfy a general test in order to satisfy section 401(a)(4), a determination that the plan satisfies the average benefit test is not a determination that the plan's rate groups satisfy the modified average benefit test that is included in the general test. Line 6. This is exclusively a request for a determination that the plan satisfies the nondiscrimination in amount or benefits requirements under section 401(a)(4) using a nondesign-based safe harbor or a general test. This determination is mutually exclusive of any determination that the plan may satisfy under section 410(b). If this is a request for a determination regarding a nondesign-based safe harbor or a general test, see the instructions for Demo 6 under Guidelines for Certain Demonstrations. The Demo 6 must show that the plan satisfies either: 1. The contributions or benefits general test in Regulatio

Our Products