Defined Contribution Listing of Required Modifications and
Information Package (LRM)
To Sponsors of Master or Prototype Plans:
This information package contains samples of plan
provisions that have been found to satisfy certain specific
requirements of the Internal Revenue Code as amended through
the Internal Revenue Service Restructuring and Reform Act of
1998 (P.L. 105-206). Such language may or may not be
acceptable in different plans depending on the context in
which used. We have prepared this package to assist
sponsors who are drafting or redrafting plans to conform to
applicable law and regulations, and we hope that it will be
a key factor in enabling us to process and approve master
and prototype plans more quickly.
Name of Sponsor:
Type of Plan:
( ) Profit-sharing
( ) Money Purchase
( ) Target Benefit
( ) 401(k)
Form of Plan:
( ) Master Plan
( ) Prototype Plan
Underlined material reflects changes to the February, 1994,
version of this LRM. Changes reflected in the May, 1998
version of this LRM remain underlined in this version. This
LRM supersedes the Regional Prototype LRM dated May, 1998
(See Rev. Prov. 2000-20, 2000-6 I.R.B. 553).
PART I - ALL PLANS
1. Document Provision:
Statement of Requirement: Definition of year of service,
IRC §410(a)(3)(A), §411(a)(5)(A).
Sample Plan Language: A year of service is a 12-consecutive
month period (computation period) during which the employee
completes at least 1,000 hours of service.
(Note to reviewer: Computation periods may vary for
eligibility and vesting purposes. See LRMs #19, and #20.)
2. Document Provision:
Statement of Requirement: Definition of break in service,
DOL Regs. §2530.200b-4(a)(1).
Sample Plan Language: Break in service will mean a
12-consecutive month period (computation period) during
which the participant does not complete more than 500 hours
of service with the employer.
(Note to reviewer: Computati