IRS Form 5308 – If you’re managing an employee retirement plan and need to adjust its fiscal year, understanding IRS Form 5308 is essential. This form allows certain plans to request approval for changing the plan or trust year under Section 412(d)(1) of the Internal Revenue Code. Whether you’re dealing with a defined benefit plan, money purchase pension plan, or target benefit plan, this guide covers everything from eligibility to filing steps. We’ll break down the process using the latest official IRS information to help you navigate changes smoothly and ensure compliance.
What Is IRS Form 5308?
IRS Form 5308, titled “Request for Change in Plan/Trust Year,” is specifically designed for employee retirement plans subject to minimum funding standards under IRC Section 412. It’s used instead of Form 1128 to seek IRS approval for shifting the end date of a plan year or trust year. This adjustment often results in a short plan year, which can impact tax deductions, reporting, and funding requirements.
The form applies to plans like defined benefit plans but excludes others such as profit-sharing plans, stock bonus plans, insurance contract plans under Section 412(e)(2), governmental plans, certain church plans, and plans without post-1974 employer contributions. If your plan qualifies for automatic approval under Revenue Procedure 87-27, you may not need to file this form at all—saving time and fees.
Key purposes include:
- Aligning plan years with business fiscal years for better administrative efficiency.
- Accommodating mergers, acquisitions, or other organizational changes.
- Ensuring the trust maintains its tax-exempt status during the transition.
Who Needs to File Form 5308?
Not every retirement plan requires Form 5308 for a year change. Filing is mandatory for plans under IRC Section 412’s minimum funding rules that don’t meet automatic approval criteria. This includes:
- Defined benefit plans.
- Money purchase pension plans.
- Target benefit plans.
- Any employees’ trust part of a qualified plan, unless exempted.
Exemptions apply to:
- Profit-sharing and stock bonus plans.
- Governmental plans (IRC Section 414(d)).
- Church plans without a Section 410(d) election.
- Plans funded solely by employee contributions after September 2, 1974.
- Certain fraternal or voluntary beneficiary associations under Section 412(e)(2).
For multiple employer or multiemployer plans, the plan administrator files on behalf of participants. If your plan has undergone a year change in the last four years or risks delaying compliance with IRS rules, you’ll likely need to file.
Automatic Approval: Do You Qualify?
Before filing, check if your change qualifies for automatic approval per Revenue Procedure 87-27. This bypasses Form 5308 if all these conditions are met:
| Requirement | Description |
|---|---|
| Implementation Actions | All steps, like plan amendments and board resolutions, completed by the short period’s end. |
| Plan Year Length | No year exceeds 12 months. |
| Compliance Timing | Change doesn’t delay adherence to laws, regulations, or IRS positions. |
| Trust Exempt Status | Trust remains exempt for the short period and prior tax year. |
| Unrelated Business Income | No Section 511 unrelated business taxable income in the short period. |
| Prior Changes | No plan year changes in the four preceding years. |
| Deductions (Defined Benefit Plans) | Follow Section 5 of Rev. Proc. 87-27 for deductions. |
If any box doesn’t apply (especially the first one), approval won’t be granted automatically—file Form 5308 with explanations for non-compliance.
Step-by-Step: How to Complete IRS Form 5308?
Filling out Form 5308 requires precise details. The latest revision is November 2019, and it’s a two-page document. Type or print clearly, and file in duplicate.
- Employer/Administrator Info: Enter name, address, EIN, and phone number.
- Change Type: Check boxes for plan year, trust year, or both.
- Line 1: User fee amount (refer to current Rev. Proc. for fees, e.g., Rev. Proc. 2019-4 or updates).
- Line 2-5: Plan name, number, current year end, and requested new year end.
- Line 6: Short period dates.
- Line 7-8: Phone and latest IRS determination letter date.
- Line 9: Explain deduction impacts.
- Line 10: Check unmet automatic approval requirements and attach explanations.
- Signature: Employer (single plans) or administrator (multiple plans) signs under penalties of perjury. Attach Form 2848 if using a representative.
Include attachments for explanations and mark “Form 5308” on them.
Filing Instructions, Deadlines, and User Fees
- Where to File: Mail to Internal Revenue Service, Attn: EP Letter Rulings TE/GE Stop 31A Team 105, P.O. Box 12192, Covington, KY 41012-0192. For private delivery: 7940 Kentucky Drive, Florence, KY 41042.
- When to File: On or before the last day of the short period. Late filings may be disapproved.
- User Fees: Required unless automatic approval applies. Check the latest Revenue Procedure (e.g., 2024 or current) for amounts—forms without fees are returned.
- Processing: IRS reviews for completeness; approval is based on provided info. No changes in funding methods are covered—use separate procedures.
For the latest form, download the PDF here: https://www.irs.gov/pub/irs-pdf/f5308.pdf.
Common Mistakes to Avoid When Filing Form 5308
- Missing user fees or incomplete info, leading to returns.
- Failing to implement changes (e.g., amendments) by the short period’s end.
- Not explaining unmet automatic approval criteria.
- Ignoring impacts on deductions or unrelated business income.
- Filing for exempt plans or changes that delay compliance.
Consult a tax professional to ensure accuracy, as errors can affect plan qualification.
Why Change Your Plan or Trust Year?
Adjusting via Form 5308 can streamline operations, align with fiscal reporting, or respond to business needs. However, it triggers a short-year return and potential funding adjustments. Always weigh tax implications.
For more details, visit the official IRS page on Form 5308. As of 2026, there are no recent developments, but check IRS.gov for updates.
This guide ensures you’re equipped to handle IRS Form 5308 effectively, maintaining compliance and optimizing your retirement plan management. If your situation is complex, seek advice from an IRS-approved expert.