A determination letter is a document that is usually sent by the IRS in regards to retirement plans provided by companies. The main purpose of the letter is to verify the structure of the retirement plan meets the requirements the IRS has put forward to protect senior citizens. Generally, the letter is either a verification of compliance, or it is a request to make specific amendments to meet specific requirements.
Sample letter of determination :
3616 Hall Place
Trinidad, NJ 75862
Dear Abrams Elevators
In response to your recent submission of your retirement plan for your employees, we are pleased to inform you that the structure of your retirement plan meets all the requirements required by the IRS.
We will be conducting periodic reviews on your retirement plan to make sure that it is still in compliance of our regulations in the future. If you plan on making any changes, we suggest you contact us before doing so to make sure they still meet our rules and regulations.
Thank you for your submission and thank you for operating you business in Newark, NJ.
IRS of New Jersey