Form 8905 - Jan 2012

Form 8905: Certification of Intent to Adopt a Pre-Approved Plan

What is Form 8905?

Form 8905, Certification of Intent to Adopt a Pre-Approved Plan, is an IRS form used by an employer or plan sponsor to certify an intent to adopt a pre-approved retirement plan. The form is associated with the IRS remedial amendment cycle rules for qualified retirement plans.

An adopter of an individually designed plan or a pre-approved plan that is not otherwise entitled to the six-year remedial amendment cycle can use Form 8905 to request that its five-year remedial amendment cycle be converted to the six-year remedial amendment cycle. Form 8905 is generally relevant to employers, plan sponsors and retirement plan professionals rather than individual taxpayers filing a personal income tax return.

Who uses Form 8905?

Form 8905 is intended for parties responsible for adopting or maintaining qualified retirement plans. This may include:

• Employers sponsoring a qualified retirement plan
• Plan sponsors adopting a pre-approved retirement plan
• Retirement plan administrators handling plan documentation
• Employee benefit professionals assisting with plan adoption
• Employers or plan sponsors seeking the applicable remedial amendment cycle treatment

The form is generally not used by employees simply because they participate in a 401(k) or other employer-sponsored retirement plan.

What is a pre-approved retirement plan?

A pre-approved retirement plan is a retirement plan document that has been reviewed and approved by the IRS under its applicable pre-approved plan program. Employers can adopt an approved plan document rather than creating an individually designed plan from scratch.

The pre-approved plan process can apply to different types of qualified retirement plans. The specific plan document and adoption process depend on the type of plan and the applicable IRS requirements.

Why is Form 8905 used?

Form 8905 is used to document an employer's or plan sponsor's intent to adopt a pre-approved plan for purposes of the applicable remedial amendment cycle. The IRS explains that an adopter of an individually designed plan or pre-approved plan that is not otherwise entitled to the six-year remedial amendment cycle can file Form 8905 to request conversion from a five-year remedial amendment cycle to a six-year remedial amendment cycle. This certification can help establish the plan sponsor's intent within the IRS retirement plan amendment process.

What information is included on Form 8905?

Form 8905 requests information needed to identify the plan and document the plan sponsor's certification. Depending on the form version and applicable circumstances, the information may include:

• Employer or plan sponsor information
• Employer identification number (EIN)
• Name and identifying information for the retirement plan
• Information about the pre-approved plan being adopted
• Plan sponsor or authorized representative information
• Certification of the intent to adopt the applicable plan

The current IRS listing identifies Form 8905 as a fillable PDF and lists its revision date as January 2012.

How to complete Form 8905

• Before completing Form 8905, gather the retirement plan's identifying information and the documents associated with the pre-approved plan adoption.
• Identify the employer or plan sponsor. Enter the required identifying information for the entity adopting the retirement plan.
• Provide plan information. Enter the requested information identifying the retirement plan and applicable pre-approved plan.
• Review the certification. Confirm that the information and statements on the form accurately reflect the plan sponsor's intent to adopt the applicable pre-approved plan.
• Sign the form. The appropriate plan sponsor or authorized individual should sign and date the certification.
• Follow the applicable IRS procedures. Review the current IRS retirement plan guidance to determine how the completed certification should be maintained or submitted for the specific plan situation.

Because Form 8905 concerns qualified retirement plan administration, the appropriate completion and filing process can depend on the plan's circumstances and the applicable IRS rules.

Where to submit Form 8905

Form 8905 is not a standard individual income tax form filed with Form 1040. The applicable submission or recordkeeping process depends on the retirement plan and the circumstances under which the certification is being used.

Plan sponsors should review the current IRS retirement plan guidance and applicable plan documents before determining where and how the form should be submitted or retained. The IRS currently lists Form 8905 among its retirement plan forms and publications.

Is Form 8905 still used?

The IRS continues to list Form 8905 as Certification of Intent to Adopt a Pre-Approved Plan. The current IRS page shows a January 2012 revision and states that there are no recent developments for the form. Because the form relates to retirement plan amendment cycles and pre-approved plan procedures, plan sponsors should use the applicable IRS guidance for the specific plan and adoption circumstances.

Need to complete Form 8905?

Form 8905 documents an employer or plan sponsor’s intent to adopt a pre-approved retirement plan when applicable. A fillable Form 8905 template helps organize the required plan and sponsor information needed to complete the certification.