Guide to IRS Form 8905: Pre-Approved Plan Certification

1. Introduction – What is Form 8905?

IRS Form 8905, officially titled “Certification of Intent to Adopt a Pre-Approved Plan,” is a specialized compliance document for employer-sponsored retirement plans. It is governed and administered by the Internal Revenue Service (IRS) under the U.S. Department of the Treasury, specifically within its Employee Plans division. This form is used by business owners and plan sponsors who operate qualified retirement plans, such as 401(k), profit-sharing, or defined benefit pension plans.

Qualified retirement plans must constantly update their legal language to keep up with changing federal tax laws. Form 8905 serves as a formal, legal certification that an employer intends to transition from a customized, individually designed retirement plan to a standardized pre-approved plan. Executing this form allows the employer to switch from a rigid five-year amendment schedule to a more flexible six-year cycle without jeopardizing the plan’s tax-exempt status.

2. Purpose of the Form

Maintaining a custom-drafted retirement plan requires significant legal oversight, frequent formal restatements, and costly applications for IRS determination letters. In contrast, pre-approved plans—such as master and prototype or volume submitter documents provided by financial institutions—are reviewed and approved by the IRS in bulk on a six-year recurring cycle. Form 8905 was created to provide a safe administrative bridge for employers moving between these two regulatory frameworks.

The form solves an urgent timing problem for employers facing upcoming plan restatement deadlines. By completing Form 8905 before their existing five-year remedial amendment cycle expires, an employer legally secures the right to use the six-year pre-approved cycle. This protects the retirement plan from being disqualified for late amendments while the pre-approved plan provider finalizes its approved documents with the IRS.

3. Who Needs to File This Form

Form 8905 is used by employers that maintain qualified retirement plans under Internal Revenue Code Section 401(a) or 403(a) and want to adopt an IRS pre-approved document. It is specifically designed for plan sponsors who need to demonstrate that they are entitled to an extended remedial amendment period.

You must complete Form 8905 if your business meets the following criteria:

• You currently sponsor an individually designed retirement plan or a pre-approved plan that is not otherwise eligible for the six-year remedial amendment cycle.
• You intend to adopt an eligible master and prototype (M&P) or volume submitter specimen plan offered by an authorized pre-approved plan sponsor.
• You want to convert your plan’s amendment schedule from the standard five-year cycle to the six-year pre-approved cycle under IRS Revenue Procedure rules.
• You are submitting an application for an IRS determination letter and must prove that your plan is entitled to rely on the six-year cycle.

4. Who Is Exempt / Not Required to File

Many business owners who provide retirement benefits for their workers will never need to handle Form 8905. If your retirement plan already operates within standard pre-approved parameters, you do not need this certification.

Your organization is not required to complete or file Form 8905 in the following situations:

• Existing Pre-Approved Adopters: Employers who already adopted a pre-approved plan during its standard six-year cycle and are not switching from an individually designed document.
• Permanent Individually Designed Plans: Employers that intend to maintain their custom-drafted plan documents and have no intention of adopting a pre-approved plan.
• Simplified Retirement Plans: Businesses sponsoring SEP IRAs, SIMPLE IRAs, or payroll deduction IRAs, which operate under separate IRS model agreements.
• Non-Qualified Plans: Non-qualified deferred compensation arrangements and executive benefit plans not governed by Section 401(a).

5. When to File

Form 8905 has strict execution deadlines established under IRS Revenue Procedure guidance. Both the employer and the pre-approved plan sponsor must complete, sign, and date Form 8905 before the end of the employer’s applicable five-year remedial amendment cycle.

Signing the document after your five-year cycle has expired invalidates the certification, leaving your plan exposed to non-compliance penalties. If you subsequently file an application for an IRS determination letter, Form 8905 must be attached directly to that application. If you do not submit a determination letter application, you do not send the form to the IRS at all; you must retain the signed original in your permanent plan records.

6. Where and How to File

A crucial rule regarding Form 8905 is that it is never mailed to the IRS as a standalone form. Sending Form 8905 to the IRS by itself will result in the document being returned or disregarded without processing.

If you are applying for an official IRS determination letter, you must attach the signed Form 8905 to your primary application packet—such as Form 5300, Form 5307, or Form 5310. The complete packet is then submitted electronically or mailed to the IRS address as per instructions for employee plan determinations. If no formal determination letter application is being submitted, the employer simply keeps the signed original Form 8905 in their corporate archives for audit protection.

7. Step-by-Step Instructions to Fill the Form

Form 8905 is a single-page document divided into three distinct parts. Both the employer sponsoring the plan and the practitioner offering the pre-approved document must complete and certify specific lines.

Section	Title	Responsible Party & Purpose
Part I	Plan Sponsor Information	Completed by the employer to identify company details, plan name, plan number, and plan type.
Part II	Sponsor / Practitioner Information	Completed to identify the pre-approved plan provider, their EIN, and the official specimen plan name.
Part III (Line 3)	Employer Certification	Signed and dated under penalties of perjury by an authorized officer of the employer.
Part III (Line 4)	Practitioner Certification	Signed and dated by the pre-approved plan sponsor certifying their IRS application timeline.

Part I: Plan Sponsor Information (Lines 1a–1e)

On Line 1a, enter the complete legal name of the employer sponsoring the plan. On Line 1b, enter the employer’s nine-digit Employer Identification Number (EIN); never enter a Social Security Number or the separate EIN of the plan’s trust. Enter the official plan name on Line 1c, the three-digit plan number (such as 001) on Line 1d, and indicate the plan type on Line 1e by entering “1” for a Defined Contribution Plan or “2” for a Defined Benefit Plan.

Part II: Pre-Approved Plan Sponsor Information (Lines 2a–2c)

This section identifies the financial institution, law firm, or third-party administrator providing the pre-approved document. On Line 2a, enter the full name of the sponsor or volume submitter practitioner. Record their nine-digit EIN on Line 2b. On Line 2c, write the exact commercial name of the pre-approved plan or volume submitter specimen plan being adopted.

Part III: Certifications (Lines 3–4)

Part III requires dual execution to make the agreement legally binding. On Line 3, an authorized corporate officer of the employer signs, dates, and provides their official business title, certifying under penalties of perjury that the company intends to adopt the pre-approved plan. On Line 4, an authorized representative of the pre-approved plan sponsor certifies that an application for an IRS opinion or advisory letter was or will be filed by a specified date, followed by their signature and date.

8. Required Documents/Information Needed Before Filling

Because Form 8905 coordinates details between your company and an outside document provider, gathering all technical retirement records in advance is necessary. Assemble these items prior to completing the form:

• Current Plan Document: The existing individually designed plan document and all subsequent interim amendments.
• Plan Identification Details: The exact legal employer name, employer EIN, and the three-digit plan sequence number from your annual Form 5500.
• Pre-Approved Provider Information: The legal name, business address, and EIN of the financial institution or third-party administrator providing the pre-approved document.
• Specimen Plan Name: The exact registered marketing and legal name of the pre-approved master or volume submitter plan.
• Cycle Verification Records: Documentation verifying your plan’s assigned remedial amendment cycle and exact expiration date under IRS guidance.

9. Common Mistakes to Avoid

Administrative errors on retirement plan compliance forms can jeopardize the tax qualification of your entire plan. Be on guard against these frequent mistakes when handling Form 8905:

• Mailing the Form Alone: Sending Form 8905 to the IRS as an isolated document is an invalid filing. It must be attached to a determination letter application or kept in your internal files.
• Signing After Cycle Expiration: Both parties must sign Form 8905 before the end of the employer’s five-year cycle. Executing the form even one day late renders the certification void.
• Using the Trust EIN: Entering the retirement plan trust’s tax identification number on Line 1b instead of the employer’s corporate EIN creates an administrative discrepancy.
• Missing the Practitioner’s Signature: An employer cannot execute Form 8905 unilaterally. Line 4 must be completed and signed by the pre-approved plan provider to be legally effective.
• Failing to Retain the Document: If you do not apply for a determination letter, you must store the original signed certification in your permanent plan records to defend your amendment timeline during an IRS audit.

10. Penalties for Non-Filing or Errors

Failing to properly complete Form 8905 does not trigger an immediate dollar-denominated IRS penalty. Instead, the consequences are structural and far more severe: your retirement plan loses the legal right to use the six-year amendment cycle.

If your plan fails to adopt required statutory amendments by the end of its five-year cycle without a valid Form 8905 in place, the plan can be disqualified under Section 401(a). Disqualification causes the employer to lose tax deductions for plan contributions, taxes the earnings of the plan trust, and makes employee account balances immediately taxable. Correcting an expired amendment cycle requires expensive remedial submissions under the IRS Voluntary Correction Program (VCP), accompanied by substantial user fees and legal expenses.

11. Related Forms or Schedules

Form 8905 functions as part of a specialized group of employee benefit plan determination and reporting forms. You will commonly encounter these companion documents:

• Form 5300, Application for Determination for Employee Benefit Plan: Used by plan sponsors to request formal IRS approval of an individually designed plan.
• Form 5307, Application for Determination for Adopters of Master or Prototype Plans: The primary application form to which Form 8905 is attached when adopting pre-approved documents.
• Form 5310, Application for Determination for Terminating Plan: Filed when an employer terminates a retirement plan and requests a final favorable determination letter.
• Form 5500, Annual Return/Report of Employee Benefit Plan: The annual operational return filed by plan administrators to report plan finances and participant counts.
• Form 8950, Application for Voluntary Correction Program (VCP): Used to resolve plan document failures if an employer misses its remedial amendment deadlines.

12. Frequently Asked Questions (FAQs)

Do I need to send Form 8905 to the IRS right after signing it?

No. If you are not submitting an immediate determination letter application on Form 5300, 5307, or 5310, keep the signed original Form 8905 in your permanent plan records. Do not mail it to the IRS by itself.

What is a pre-approved retirement plan?

A pre-approved plan is a standardized retirement plan document—such as a master, prototype, or volume submitter plan—developed by a financial institution or benefits practitioner and pre-cleared by the IRS for legal compliance.

Who must sign Form 8905?

Form 8905 requires two signatures: an authorized corporate officer or representative of the employer sponsoring the plan (Line 3), and an authorized representative of the pre-approved plan sponsor (Line 4).

What is a remedial amendment cycle?

A remedial amendment cycle is a recurring multi-year window established by the IRS during which plan sponsors must update and restate their retirement plan documents to comply with recent changes in federal tax law.

Can a business use Form 8905 for a SEP or SIMPLE IRA?

No. Form 8905 is strictly reserved for qualified plans governed by Internal Revenue Code Section 401(a) or 403(a), such as 401(k), profit-sharing, money purchase, or defined benefit plans.

What happens if our company changes its mind after signing Form 8905?

If you execute Form 8905 but later decide not to adopt the pre-approved plan, your plan remains subject to the rules and deadlines of your original individually designed plan cycle. You may need to file a formal determination letter application under your standard cycle to maintain reliance.

13. Conclusion

IRS Form 8905 serves as an indispensable legal bridge for employers transitioning their retirement plans from complex custom documents to efficient pre-approved formats. By certifying an employer’s intent to adopt a pre-approved document before their existing deadline lapses, the form grants access to the six-year remedial amendment cycle. This preserves the plan’s qualified tax status and shields the business from catastrophic disqualification risks.

Remember that timing and proper record retention are everything when dealing with Form 8905. Ensure that both you and your pre-approved plan provider sign the certification before your five-year cycle expires, and store the executed original safely in your plan compliance archives. Taking these simple steps guarantees that your retirement plan remains fully compliant and ready for any future IRS review.