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What Is a Letter of Determination?

By Robin Hartill, CFP – Updated Oct 23, 2024 at 1:31PM

Key Points

  • IRS letter of determination confirms a retirement plan meets ERISA standards, allowing tax benefits.
  • Employers using pre-approved plans generally don't need a determination letter unless major changes are made.
  • Determination letter doesn't assess if a plan meets nondiscrimination tests under ERISA.
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