Internal Revenue Service
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 Rev. Rul. 77-24

1977-1 C.B. 122

Section 415

IRS Headnote

Adoption of limitation year. A resolution electing a limitation year other than a calendar year for an employee benefit plan that is adopted or modified on or before the later of the adoption date of the first amendment conforming an existing plan to ERISA or December 31, 1976 shall not be considered a change in the limitation year; Rev. Rul. 75-481 modified and Rev. Rul. 76-318 superseded.

Full Text

Rev. Rul. 77-24 [fn1]

Rev. Rul. 75-481, 1975-2 C.B. 188, provides in part that in lieu of using a calendar year as the limitation year for an employee plan under section 415 of the Internal Revenue Code of 1954, an employer may elect to use any other twelve-month period. Paragraph (4) of section 2.01 of Rev. Rul. 75-481 provides that if an employer changes the limitation year the limitations of section 415 shall be applicable with respect to the current limitation year as if no change in the limitation year had occurred and with respect to the first limitation year for which such change is effective. However, paragraph (3) of section 2.01 of Rev. Rul. 75-481, as modified by Rev. Rul. 76-318, 1976-2 C.B. 125, provides that an employer may elect a limitation year which is not a calendar year by written resolution, and that if the first such resolution is adopted prior to January 1, 1977, the election will not be deemed a change in the limitation year.

Paragraph (3), section 2.01 of Rev. Rul. 75-481, is hereby modified to read as follows:

The election described in paragraph (2) shall be made by the adoption of a written resolution by the employer. Any such resolution shall not be considered a change in the limitation year described in paragraph (4) if the resolution is adopted or modified on or before the later of the adoption date of the first amendment conforming an existing plan to ERISA, or December 31, 1976.

Rev. Rul. 75-481 is hereby modified and Rev. Rul. 76-318 is hereby superseded.

[fn1] Also released as IR-1727, dated December 30, 1976.