Employers who are eligible for an exemption from user fees when applying for a determination letter can now take advantage of the new rules regarding the exemption. This exemption applies to employers with no more than 100 employees who received at least $5,000 of compensation from the employer in the preceding year and have at least one employee who is not a highly compensated employee participating in the plan.
What is Form 8717?
A user fee is required with each application for a determination letter, as noted on page 1. However, if you are an eligible employer (defined as having no more than 100 employees who each received at least $5,000 in the preceding year, and at least one employee who is not highly compensated and is participating in the plan) and you are requesting a determination letter within the first five plan years of the plan being effective, or within the GUST remedial amendment period, you may be exempt from the user fee. If the exemption does not apply, a user fee is due and must be attached to Form 8717 with your application; any incomplete user fee payments will result in the application being returned. If you are submitting applications for multiple plans, you must submit a separate application and Form 8717 for each one.
IRS Form 8717 – Who Needs to Fill It Out?
Those who need to fill out IRS Form 53, Application for a Determination Letter, as well as any applicable user fees, include any employers who request a determination letter within the first five plan years of when the plan was first effective. This applies for employers who have no more than 100 employees, with at least one of them not classified as a ‘highly-compensated employee’, and who recieved at least $5,000 compensation from the employer in the preceding year. Those applying for the form must meet these criteria and submit a check or money order payable to the ‘United States Treasury’ for the full amount of the user fee. If multiple plans response requiring individual applications, then a separate determination letter application and Form 8717 must be submitted for each plan.
Step-by-Step: Form 8717 Instructions For Filling Out the Document
To fill out the Form 8717 correctly, it is important to understand the user fees associated with each given application for a determination letter. Generally, a user fee is due with each application, but may be exempt if the employer satisfies certain conditions, like having no more than 100 employees and at least one participant who is not a highly compensated employee. To determine eligibility, make sure the application is made by the end of the plan’s GUST remedial amendment period. If applicable, check the appropriate box of line 5 to indicate if the user fee applies or if an exclusion is applicable. Lastly, make sure to attach the full amount of the user fee to Form 8717. Remember, if you have multiple plans, each one requires a separate application.
Below, we present a table that will help you understand how to fill out Form 8717.
| Information Required for Form 8717 | Details |
|---|---|
| Application Type | Select the appropriate application type |
| Plan Information | Provide details about the retirement plan |
| User Fee | Attach the full amount of the user fee |
| Multiple Plans | Each plan requires a separate application |
Do You Need to File Form 8717 Each Year?
Generally, an employer is required to file Form 8717 each year if it has more than 100 employees who received at least $5,000 of compensation from the employer for the preceding year, and at least one employee who is not a highly compensated employee (as defined in section 414(q)) and is participating in the plan. In addition, eligible employers (defined in section 408(p)(2)(C)(i)(l)) may be exempt from having to file a user fee, if they make the request within the first five plan years or, if later, the end of the remedial amendment period that begins within the first five plan years with respect to a plan. If a user fee is required, a check or money order payable to the “United States Treasury” for the full amount must be made and attached to Form 8717. If multiple plans are held, a separate determination letter application and Form 8717 should be filled out and submitted.
Download the official IRS Form 8717 PDF
On the official IRS website, you will find a link to download Form 8717. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8717
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