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Treas. Reg. § 1.401(b)-1

Certain retroactive changes in plan.
CFR 1997 annual edition (revised as of 1997-04-01) · superseded Apr 1, 1998 · last amended by T.D. 8217, 53 FR 29662, Aug. 8, 1988
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(a) General rule. Under section 401(b) a stock bonus, pension, profit-sharing, annuity, or bond purchase plan which does not satisfy the requirements of section 401(a) on any day solely as a result of a disqualifying provision (as defined in paragraph (b) of this section) shall be considered to have satisfied such requirements on such date if, on or before the last day of the remedial amendment period (as determined under paragraphs (c), (d) and (e) of this section) with respect to such disqualifying provision, all provisions of the plan which are necessary to satisfy all requirements of sections 401(a), 403(a), or 405(a) are in effect and have been made effective for all purposes for the whole of such period. Under some facts and circumstances, it may not be possible to amend a plan retroactively so that all provisions of the plan which are necessary to satisfy the requirements of section 401(a) are in fact made effective for the whole remedial amendment period. If it is not possible, the requirements of this section will not be satisfied even if the employer adopts a retroactive plan amendment which, in form, appears to satisfy such requirements. Section 401(b) does not permit a plan to be made retroactively effective, for qualification purposes, for a taxable year prior to the taxable year of the employer in which the plan was adopted by such employer.
(b) Disqualifying provisions. For purposes of this section, with respect to a plan described in paragraph (a) of this section, the term “disqualifying provision” means:
(1) A provision of a new plan, the absence of a provision from a new plan, or an amendment to an existing plan, which causes such plan to fail to satisfy the requirements of the Code applicable to qualification of such plan as of the date such plan or amendment is first made effective or
(2) A plan provision which results in the failure of the plan to satisfy the qualification requirements of the Code by reason of a change in such requirements—
(i) Effected by the Employee Retirement Income Security Act of 1974 (Pub. L. 93-406, 88 Stat. 829), hereafter referred to as “ERISA,” or the Tax Equity and Fiscal Responsibility Act of 1982 (Pub. L. 97-248, 96 Stat. 324), hereafter referred to as “TEFRA,” or
(ii) Effective before the first day of the first plan year beginning after December 31, 1989 and that is effected by the Tax Reform Act of 1986 (Pub. L. 99-514, 100 Stat. 2085, 2489), hereafter referred to as “TRA ’86,” the Omnibus Budget Reconciliation Act of 1986, (Pub. L. 99-509, 100 Stat. 1874), hereafter referred to as “OBRA ’86,” or the Omnibus Budget Reconciliation Act of 1987 (Pub. L. 100-203, 101 Stat. 1330), hereafter referred to as “OBRA ’87.” For purposes of this paragraph (b)(2)(ii), a disqualifying provision includes any plan provision that is integral to a qualification requirement changed by TRA ’86, OBRA ’86, or OBRA ’87 or any requirement treated by the Commissioner, directly or indirectly, as if section 1140 of TRA ’86 applied to it, but only to the extent such provision is effective before the first day of the first plan year beginning after December 31, 1989. With respect to disqualifying provisions described in this paragraph (b)(2)(ii) effective before the first day of the first plan year which begins after December 31, 1988, there must be compliance with the conditions of section 1140 of TRA ’86 (other than the requirement that the plan amendment be made on or before the last day of the first plan year beginning after December 31, 1988), including operation in accordance with the plan provision as of its effective date with respect to the plan.
(iii) Effected by amendments to the Code that are designated by the Commissioner, at his discretion, as disqualifying provisions described in this paragraph (b)(2). For purposes of this paragraph (b)(2), a disqualifying provision includes the absence from a plan of a provision required by such change if the plan was in effect on the date such change became effective with respect to such plan.
(c) Remedial amendment period.
(1) The remedial amendment period with respect to a disqualifying provision begins:
(i) In the case of a provision of, or absence of a provision from, a new plan, described in paragraph (b)(1) of this section, the date the plan is put into effect,
(ii) In the case of an amendment to an existing plan, described in paragraph (b)(1) of this section, the date the plan amendment is adopted or put into effect (whichever is earlier), or
(iii) In the case of a disqualifying provision described in paragraph (b)(2) of this section, the date on which the change effected by ERISA, TEFRA, TRA ’86, OBRA ’86, OBRA ’87, or a qualification requirement that is treated, directly or indirectly, as subject to the conditions of section 1140 of TRA ’86 described in paragraph (b)(2) of this section, became effective with respect to such plan or, in the case of a provision, described in paragraph (b)(2)(ii) of this section, that is integral to such qualification requirement, the first day on which the plan was operated in accordance with such provision.
(2) Unless further extended as provided by paragraph (d) of this section, the remedial amendment period ends with the latest of:
(i) In the case of a plan maintained by one employer, the time prescribed by law, including extensions, for filing the income tax return (or partnership return of income) of the employer for the employer's taxable year in which falls the latest of:
(A) The date on which the remedial amendment period begins.
(B) The date on which a plan amendment described in paragraph (b)(1) of this section is adopted, or
(C) The date on which a plan amendment described in paragraph (b)(1) of this section is made effective,
(ii) In the case of a plan maintained by one employer, the last day of the plan year within which falls the latest of:
(A) The date on which the remedial amendment period begins,
(B) The date on which a plan amendment described in paragraph (b)(1) of this section is adopted, or
(C) The date on which a plan amendment described in paragraph (b)(1) of this section is made effective,
(iii) In the case of a plan maintained by more than one employer, the last day of the tenth month following the last day of the plan year in which falls the latest of:
(A) The date on which the remedial amendment period begins,
(B) The date on which a plan amendment described in paragraph (b)(1) of this section is adopted, or
(C) The date of which a plan amendment described in paragraph (b)(1) of this section is made effective, or
(iv) December 31, 1976, but only in the case of a plan to which section 411 (relating to minimum vesting standards) applies without regard to section 411(e)(2), and only in the case of a remedial amendment period which began on or after September 2, 1974.
For purposes of paragraphs (c)(2)(i), (c)(2)(ii), and (c)(2)(iii) of this section, for any disqualifying provision described in paragraph (b)(2)(ii) of this section, the remedial amendment period shall be deemed to have begun with the first day of the first plan year which begins after December 31, 1988.
For purposes of this paragraph (c)(2) of this section, a master or prototype plan shall not be considered to be a plan maintained by more than one employer, and whether or not a plan is maintained by more than one employer, shall be determined without regard to section 414 (b) and (c) except that if a plan is maintained solely by an affiliated group of corporations (within the meaning of section 1504) which files a consolidated income tax return pursuant to section 1501 for a taxable year within which falls the latest of the dates described in paragraph (c)(2)(i) of this section, such plan shall be deemed to be maintained by one employer.
(d) Extensions of remedial amendment period
(1) Opinion letter request by sponsoring organization of master or prototype plan. In the case of an employer who has adopted a master or prototype plan, a remedial amendment period that began on or after September 2, 1974, shall not end prior to the later of:
(i) June 30, 1977, or
(ii) The last day of the month that is six months after the month in which:
(A) The opinion letter with respect to the request of the sponsoring organization is issued by the Internal Revenue Service,
(B) Such request is withdrawn, or
(C) Such request is otherwise disposed of by the Internal Revenue Service. The rules contained in this subparagraph apply only if the sponsoring organization of such master or prototype plan has, after September 2, 1974, and on or before December 31, 1976, filed a request for an opinion letter with respect to the initial or continuing qualification of the plan (or a trust which is part of the plan). The provisions of this paragraph (d)(1) apply to a master or prototype plan adopted to replace another plan even though the remedial amendment period applicable to the replaced plan has expired at the time of adoption of the replacement plan.
(2) Notification letter request by law firm sponsor of district-approved plan. In the case of an employer who has adopted a pattern plan, a remedial amendment period that began on or after September 2, 1974, shall not end prior to the later of:
(i) June 30, 1977, or
(ii) The last day of the month that is six months after the month in which:
(A) The notification letter with respect to the request of the sponsoring law firm is issued by the Internal Revenue Service,
(B) Such request is withdrawn, or
(C) Such request is otherwise disposed of by the Internal Revenue Service. The rules contained in this subparagraph shall apply only if the sponsoring law firm of such pattern plan has, on or before December 31, 1976, filed a request for a notification letter with the Internal Revenue Service with respect to the initial or continuing qualification of the plan (or a trust which is part of the plan). The provisions of this paragraph (d)(2) apply to a pattern plan adopted to replace another plan even though the remedial amendment period applicable to the replaced plan has expired at the time of the adoption of the replacement plan.
(3) Determination letter request by employer or plan adminstrator. If on or before the end of a remedial amendment period determined without regard to this paragraph (d), or in a case to which paragraph (d) (1) or (2) of this section applies, on or before the 90th day following the later of the dates described in paragraph (d) (1) or (2) of this section, the employer or plan administrator files a request pursuant to § 601.201(s) of this chapter (Statement of Procedural Rules) for a determination letter with respect to the initial or continuing qualification of the plan, or a trust which is part of such plan, such remedial amendment period shall be extended until the expiration of 91 days after:
(i) The date on which notice of the final determination with respect to such request for a determination letter is issued by the Internal Revenue Service, such request is withdrawn, or such request is otherwise finally disposed of by the Internal Revenue Service, or
(ii) If a petition is timely filed with the United States Tax Court for a declaratory judgment under section 7476 with respect to the final determination (or the failure of the Internal Revenue Service to make a final determination) in response to such request, the date on which the decision of the United States Tax Court in such proceeding becomes final.
(4) Transitional rule. In the case of a request for a determination letter described in and filed within the time prescribed in paragraph (d)(3) of this section with respect to which a final determination is issued by the Internal Revenue Service on or before September 28, 1976 the remedial amendment period described in paragraph (c) of this section shall not end prior to the expiration of 150 days beginning on the date of such final determination by the Internal Revenue Service.
(5) Disqualifying provision prior to September 2, 1974. If the remedial amendment period with respect to a disqualifying provision described in paragraph (b)(1) of this section began prior to September 2, 1974, and the provisions of subdivisions (i), (ii) and (iii) of this subparagraph are satisfied, the remedial amendment period described in paragraph (c) shall not end prior to December 31, 1976. This subparagraph shall apply only if—
(i) A request pursuant to § 601.201 of this chapter for a determination letter with respect to the initial or continuing qualification of the plan (or a trust which is part of the plan) was filed not later than the later of:
(A) The time prescribed by law, including extensions, for filing the income tax return (or partnership return of income) of the employer for the employer's taxable year in which falls the date on which the remedial amendment period began, or
(B) The date 6 months after the close of such taxable year,
(ii) The employer, either:
(A) While such request for a determination letter is or was under consideration by the Internal Revenue Service or,
(B) Promptly after the date on which notice of the final determination with respect to such request for a determination letter is issued by the Internal Revenue Service, such request is withdrawn, or such request is otherwise finally disposed of by the Internal Revenue Service, adopts or adopted either a plan amendment retroactive to the date on which the remedial amendment period began, or a prospective plan amendment, and
(iii) The amendment described in paragraph (d)(5)(ii) of this section would have resulted in the plan's satisfying the requirements of section 401(a) of the Code from the beginning of the remedial amendment period to the date such amendment was made if this section had been in effect during such period, and in the case of a prospective amendment, if such amendment had been made retroactive to such beginning date.
(e) Discretionary extensions. At his discretion, the Commissioner may extend the remedial amendment period or may allow a particular plan to be amended after the expiration of its remedial amendment period and any applicable extension of such period. In determining whether such an extension will be granted, the Commissioner shall consider, among other factors, whether substantial hardship to the employer would result if such an extension were not granted, whether such an extension is in the best interest of plan participants, and whether the granting of the extension is adverse to the interests of the Government. The mere absence of final regulations with respect to issues covered under the Special Reliance Procedure announced by the Internal Revenue Service in Technical Information Release 1416 on November 5, 1975, and as extended by Internal Revenue Service News Release IR-1616 on May 14, 1976, shall not be deemed to satisfy the criteria of this paragraph. With regard to a particular plan, a request for extension of time pursuant to this paragraph shall be submitted prior to the expiration of the remedial amendment period determined without regard to this paragraph, or within such time thereafter as the Internal Revenue Service may consider resonable under the circumstances. The request should be submitted to the appropriate District Director, determined under § 601.201(s)(3)(xii) of this chapter (Statement of Procedural Rules). This subparagraph applies to disqualifying provisions that were adopted or became effective prior to September 2, 1974, as well as disqualifying provisions adopted or made effective on or after September 2, 1974.

(Secs. 401(b), 7805, Internal Revenue Code of 1954 (88 Stat. 943, 68A Stat. 917; 26 U.S.C. 401(b), 7805))

Source credit, amendments & notes

[T.D. 7437, 41 FR 42653, Sept. 28, 1976, as amended by T.D. 7896, 48 FR 23817, May 27,1983; T.D. 7997, 49 FR 50645, Dec. 31, 1984; T.D. 8217, 53 FR 29662, Aug. 8, 1988]

Treas. Reg. § 1.401(b)-1 — Certain retroactive changes in plan. · CFR 1997 annual edition (revised as of 1997-04-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr26-1.401%28b%29-1&asof=1978-08-29 · printed Oct 16, 2026
On this page
  • (a) General rule.
  • (b) Disqualifying provisions.
  • (c) Remedial amendment period.
  • (d) Extensions of remedial amendment period
  • (e) Discretionary extensions.
Implements
I.R.C. § 401 Qualified pension, profit-sharing, and stock bonus plans
Cited by (code & regs)
Guidance addressing this section
IRS / Treasury
Notices
  • Notice 2012-70 Dec 17, 2012 — This notice extends the deadline, as set forth in Notice 2011-96, 2011-52 I.R.B. 915, to amend a defined benefit plan to satisfy the requirements of section 43…
Revenue Procedures
  • Rev. Proc. 2012-50 Dec 10, 2012 — Modification of Revenue Procedure 2007-44. This procedure modifies Rev. Proc. 2007-44, 2007-2 C.B. 54, to provide under section 401 of the Code that the sponso… (f)
  • Rev. Proc. 2009-36 Aug 31, 2009 — Modification of Revenue Procedure 2007-44. This procedure modifies Rev. Proc. 2007-44, 2007-2 C.B. 54, to provide that a remedial amendment cycle with respect … (e)(3)(f)
  • Rev. Proc. 2004-25 Apr 19, 2004 — Remedial amendment period; disqualifying provisions; December 31, 2001. This procedure extends the remedial amendment period under section 401(b) of the Code w… (b)(d)(f)
Also cited in 24 other documents
IRS / Treasury
Proposed Rules
Notices
  • Notice 2024-82 Dec 23, 2024 — This notice sets forth the 2024 Required Amendments List (2024 RA List). The 2024 RA List applies to individually designed plans qualified under section 401(a)…
  • Notice 2022-62 Dec 5, 2022 — 2022 Required Amendments List for Individually Designed Qualified and Section 403(b) Plans
  • Notice 2022-33 Aug 22, 2022 — Notice 2022-33 extends the deadlines for amending a retirement plan or IRA to reflect the provisions of Division O of the Further Consolidated Appropriations A… (b)(b)(3)(c)(1)(d)(1)(iv)(d)(2)(i)(d)(2)(iii)
  • Notice 2013-17 May 13, 2013 — This notice provides relief from the anti-cutback requirements of § 411(d)(6) of the Code for plan amendments that eliminate a distribution option described in… (b)(3)(f)
  • Notice 2011-96Modified Dec 27, 2011 — This notice provides a sample plan amendment that plan sponsors may adopt to satisfy section 436 of the Code regarding limitations on the accrual and payment o…
    Modified by Notice 2012-70
  • Notice 2010-15 Feb 8, 2010 — Miscellaneous HEART Act changes. This notice provides guidance in the form of questions and answers with respect to certain provisions of the Heroes Earnings A… (a)(b)(b)(1)(b)(3)(d)(d)(1)(iv)
  • Notice 2009-97 Dec 28, 2009 — This notice extends the deadline for amending qualifed retirement plans to meet certain requirements of the Code that were added by the Pension Protection Act …
  • Notice 2007-69 Aug 27, 2007 — Normal retirement age; temporary relief. This notice provides temporary relief for certain pension plans whose definition of normal retirement age may be requi… (b)(3)(i)(e)(3)
  • Notice 2005-95 Dec 19, 2005 — Plan amendments; retroactive annuity starting date; elective deferrals. This notice clarifies the interaction of the amendment timing deadlines for plans quali… (b)(1)(b)(3)
  • Notice 2004-84Modified Dec 27, 2004 — Retirement plans; qualification, list of changes. This notice sets forth a list of changes referred to in Announcement 2004-71, 2004-40 I.R.B. 569, pertaining … (b)(1)(b)(3)(c)(d)(f)
    Modified by Notice 2005-95
Revenue Procedures
  • Rev. Proc. 2023-37 Dec 18, 2023 — This revenue procedure sets forth the rules regarding qualified pre-approved plans and section 403(b) pre-approved plans, and combines, conforms, clarifies, an… (b)(3)(d)(1)
  • Rev. Proc. 2022-40 Nov 21, 2022 — Rev. Proc. 2022-40 modifies Rev. Proc. 2016-37, 2016-29 IRB 136, which, in part, provides the circumstances under which a plan sponsor may submit a determinati… (b)(b)(1)(b)(3)(c)(1)(c)(3)(d)(1)
  • Rev. Proc. 2021-30Modified Aug 2, 2021 — Rev. Proc. 2021-30 adds two new benefit overpayment correction methods that encourage employers to avoid seeking recoupment of benefit overpayments made to par… (b)(b)(3)
    Modified by Notice 2024-77
  • Rev. Proc. 2019-20Superseded May 13, 2019 — This revenue procedure provides for a limited expansion of the determination letter program with respect to individually designed plans. This revenue procedure… (b)(e)(3)
    Superseded by Rev. Proc. 2022-40
  • Rev. Proc. 2008-50 Sep 2, 2008 — This procedure updates the comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of sectio… (b)(b)(1)(b)(3)
  • Rev. Proc. 2007-44Modified Jul 9, 2007 — Qualification; determination letters; staggered remedial amendment periods. Rev. Proc. 2005-66, containing the Service’s procedures for issuing determination l… (b)(b)(1)(b)(3)(c)(1)(c)(3)(f)
    Modified by Rev. Proc. 2012-50; Modified by Notice 2010-48; Modified by Rev. Proc. 2009-36; Modified by Notice 2009-97; Modified by Rev. Proc. 2008-56
  • Rev. Proc. 2006-27Superseded May 30, 2006 — Administrative programs; correction programs. This procedure updates and expands upon the Service’s comprehensive Employee Plans Compliance Resolution System (… (b)(1)
    Superseded by Rev. Proc. 2008-50
  • Rev. Proc. 2005-66Superseded Sep 12, 2005 — Qualification; determination letters; staggered remedial amendment periods. This procedure contains the Service’s procedures for issuing determination letters … (b)(b)(1)(b)(3)(c)(1)(c)(3)(f)
    Superseded by Rev. Proc. 2007-44
  • Rev. Proc. 2005-23Modified May 2, 2005 — Retroactive payment of benefits; remedial amendment period; determination letters. This document contains procedures to limit the retroactive application of th… (b)(3)(i)
    Modified by Rev. Proc. 2005-76
  • Rev. Proc. 2003-72 Sep 22, 2003 — EP determination letters; extension of application deadline for certain pre-approved plans. This procedure extends the deadline for filing EP determination let… (e)(3)
Announcements
  • Ann. 2011-82 Dec 27, 2011 — This announcement describes several important changes to the Employee Plans determination letter program that take effect in 2012.
  • Ann. 2004-71 Oct 4, 2004 — Qualification; determination letters; staggered remedial amendment periods. This announcement includes a draft revenue procedure that contains the Service’s pr… (b)(b)(1)(b)(3)(c)(3)(f)
Treasury Decisions
  • T.D. 9319 Apr 30, 2007 — Final regulations contain amendments to the regulations under section 415 of the Code regarding limitation on benefits and contributions under qualified plans.… (b)(3)(i)
Tax Court (5) · DOL/Federal (0)
U.S. Tax Court (5)
Rulings that address this provision
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Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Apr 1, 1997Mar 31, 1998CFR 1997 annual edition (revised as of 1997-04-01) run 127T.D. 8217, 53 FR 29662, Aug. 8, 1988View
Apr 1, 1998Mar 31, 1999CFR 1998 annual edition (revised as of 1998-04-01) run 127T.D. 8727, 62 FR 41273View · Redline (sign in)
Apr 1, 1999Mar 31, 2000CFR 1999 annual edition (revised as of 1999-04-01) run 127T.D. 8727, 62 FR 41273View · Redline (sign in)
Apr 1, 2000currenteCFR editorial change effective 2016-05-18 run 2T.D. 8871, 65 FR 5433, Feb. 4, 2000View · Redline (sign in)
Provision-level history (blame)