Introduction: What is IRS Form 8717-A?
IRS Form 8717-A, titled User Fee for Employee Plan Opinion or Advisory Letter Request, is an administrative payment and scheduling form governed by the Internal Revenue Service (IRS) Employee Plans division under the Department of the Treasury. It is authorized under Internal Revenue Code (IRC) Section 7528 and annual IRS Employee Plans Revenue Procedures.
This form is used by financial institutions, mass submitters, pension software developers, and sponsoring organizations to calculate and submit mandatory federal user fees when requesting an official IRS Opinion Letter or Advisory Letter for pre-approved retirement plans, prototype IRAs, SEPs, or SIMPLE IRA documents.
Purpose of the Form: Why Form 8717-A Exists
Most small businesses do not draft custom retirement plans from scratch; instead, they adopt standardized “pre-approved” plans (such as prototype 401(k)s or volume-submitter pension plans) created by banks, mutual fund companies, and third-party administrators (TPAs). To market these plans to employers, the sponsoring organization must first submit the master plan document to the IRS for review and receive a favorable Opinion Letter.
Because reviewing master prototype plan documents and complex volume-submitter language requires extensive IRS technical and legal review, federal law requires sponsoring organizations to pay administrative user fees under IRC Section 7528. Form 8717-A categorizes the specific type of prototype or pre-approved plan submission, applies the correct fee tier based on whether the applicant is a mass submitter or word-for-word adopter, and ensures payment is processed before review begins.
Form 8717 vs. Form 8717-A: The Key Difference
Although both forms calculate user fees for retirement plans, they serve two distinct groups of applicants:
| Feature | Form 8717 | Form 8717-A |
|---|---|---|
| Type of Letter Requested | Determination Letter (for a specific employer’s plan). | Opinion or Advisory Letter (for a master prototype plan). |
| Who Files | Individual Employers & Plan Sponsors (businesses offering a 401(k) or pension). | Financial Institutions, Mass Submitters, & TPAs (entities creating plan templates). |
| Accompanying Application | Attached to Form 5300, Form 5307, or Form 5310. | Attached to Form 5306, Form 5306-A, or Pre-Approved Plan Filings. |
| Small Employer Fee Waiver | Yes (qualifying small employers pay $0 under § 7528(b)(2)). | No (institutional prototype fees are not eligible for small employer waivers). |
Who Needs to File This Form?
Form 8717-A must be submitted by organizations that develop, sponsor, or market standardized retirement plans and individual retirement arrangements, including:
- Mass Submitters: Software vendors, actuarial consulting firms, and national pension sponsors that submit a master lead plan document on behalf of at least 30 unaffiliated sponsoring organizations.
- Sponsoring Organizations & Providers: Banks, trust companies, credit unions, insurance companies, and mutual fund managers submitting proprietary pre-approved 401(k), profit-sharing, or defined benefit plans under Revenue Procedure 2017-41.
- Word-for-Word Adopters: Financial institutions that adopt an approved mass submitter’s master plan document without making any changes to the core language (qualifying for significantly reduced user fees).
- Minor Modifiers: Sponsoring organizations adopting a mass submitter plan with minor custom modifications (such as custom trust or administrative provisions).
- Prototype IRA, SEP, & SIMPLE Sponsors: Financial institutions seeking approval for prototype Traditional IRAs, Roth IRAs, SEP IRAs, or SIMPLE IRAs using Form 5306 or Form 5306-A.
- Pre-Approved Section 403(b) Providers: Entities submitting standardized 403(b) tax-sheltered annuity plan documents under Revenue Procedure 2021-37.
Who Is Exempt / Not Required to File?
You do not need to use Form 8717-A in the following situations:
- Individual Employers Adopting Pre-Approved Plans: Small businesses and employers that adopt an established, pre-approved prototype 401(k) plan from a bank or payroll company rely directly on the provider’s IRS Opinion Letter and pay no IRS user fees.
- Custom Individually Designed Plan Sponsors: Employers seeking custom determination letters for their own specific company retirement plans use Form 8717 alongside Form 5300.
- Model Form Users: Small business owners who establish retirement arrangements using standard IRS model forms (such as Form 5305-SEP or Form 5304-SIMPLE) that do not require IRS approval.
- Individual Investors: Everyday individuals opening personal Traditional or Roth IRAs.
When to File: Submission Windows and Cycles
Form 8717-A is submitted simultaneously with the underlying pre-approved plan application or prototype IRA package:
- IRS Pre-Approved Plan Cycles: The IRS operates structured multi-year submission cycles for pre-approved qualified plans (e.g., defined contribution plans, defined benefit plans, and 403(b) plans). Form 8717-A must be submitted during the designated open submission window announced in IRS Revenue Procedures.
- Prototype IRAs, SEPs, and SIMPLEs (Forms 5306/5306-A): Sponsoring organizations can submit prototype IRA and SEP plan documents along with Form 8717-A at any time during the calendar year.
Where and How to File Form 8717-A
Under modern IRS Employee Plans procedures, prototype plan applications and user fee payments are processed electronically:
- Electronic Submission via Pay.gov: Form 8717-A data and fee payments are submitted electronically through the federal Pay.gov system as an integrated step in the electronic submission process.
- Payment Methods: User fees are paid directly on Pay.gov using an Automated Clearing House (ACH) direct debit from a corporate bank account or via a major credit/debit card.
- Paper Submissions (if authorized): In limited circumstances where paper filings are permitted by IRS guidance, Form 8717-A is placed on top of the master plan package and mailed directly to the IRS address as per instructions for Pre-Approved Plans in Covington, Kentucky.
Step-by-Step Instructions to Fill Out Form 8717-A
Form 8717-A is a one-page document organized into applicant identification, fee categories, and total calculation lines. Complete each section using the guidelines below:
| Part / Section | Field Description | Instructions |
|---|---|---|
| Header Details | Sponsor & Plan Identification | Enter the sponsoring organization’s legal name, Employer Identification Number (EIN), address, contact person, phone number, and email. |
| Part I | User Fee Category Selection | Check the single box that corresponds to your specific submission type (e.g., Mass Submitter Lead Plan, Word-for-Word Adopter, Minor Modifier, Non-Mass Submitter, or Prototype IRA/SEP). |
| Part II | Mass Submitter Details (if applicable) | If applying as a word-for-word adopter or minor modifier, enter the lead mass submitter’s legal name, EIN, and the IRS lead plan reference letter number. |
| Fee Calculation Line | Total User Fee Amount | Enter the total required fee amount established in the latest annual IRS Employee Plans Revenue Procedure. |
Understanding the Fee Tiers on Form 8717-A
The IRS publishes updated fee amounts annually in the first Revenue Procedure of each year. Typical fee tiers include:
- Mass Submitter Lead / Basic Plan: The highest fee tier, reflecting the comprehensive technical review required for a master plan template that will be used by dozens of financial institutions.
- Non-Mass Submitter Pre-Approved Plan: A substantial fee for independent financial providers submitting a proprietary plan without a mass submitter.
- Word-for-Word Adopter: A significantly lower user fee (often a few hundred dollars per plan) because the IRS has already reviewed and approved the underlying mass submitter text.
- Minor Modifier: A moderate fee tier covering minor custom adjustments made to an approved mass submitter document.
- Form 5306 / 5306-A (Prototype IRAs & SEPs): Tiered fees based on whether the prototype is an original submission or an identical adoption of a mass submitter IRA.
Required Documents and Information Needed Before Filling
Before completing Form 8717-A, the sponsoring organization’s ERISA compliance team should assemble:
- Completed Application Form: A finalized draft of Form 5306, Form 5306-A, or the applicable pre-approved plan application schedule.
- Master Plan Documents: Complete copies of the basic plan document, trust/custodial agreement, and adoption agreement.
- Mass Submitter Authorization: If filing as an adopter or minor modifier, a copy of the lead mass submitter’s IRS Opinion Letter and a formal written authorization letter from the mass submitter.
- Payment Credentials: Corporate bank routing and account details or a credit card ready for electronic fee payment on Pay.gov.
Common Mistakes to Avoid
- Selecting the Wrong Fee Category: Checking the discounted “word-for-word adopter” box when minor modifications were made to the plan text. The IRS will suspend processing until the higher fee difference is paid.
- Using Form 8717 Instead of Form 8717-A: Submitting Form 8717 (which is for employer determination letters) when requesting an institutional opinion letter.
- Relying on Outdated Fee Schedules: Using prior-year fee amounts. Always check the current year’s annual Employee Plans Revenue Procedure for updated user fee rates.
- Missing Mass Submitter Reference Numbers: Failing to provide the lead plan document number and letter date when filing as an adopting provider.
- Submitting Incomplete Plan Packages: Submitting Form 8717-A and fee payments without all required plan text, adoption agreements, and cross-reference tables.
Consequences of Non-Filing or Inadequate Fees
Submitting an opinion letter request without Form 8717-A or with an insufficient fee carries immediate administrative consequences:
- Application Rejection at Intake: The IRS Employee Plans intake division will reject and return the entire prototype submission without technical review.
- Missed Pre-Approved Submission Windows: If an application is rejected for fee errors near the end of a multi-year cycle window, the provider could be locked out of the entire multi-year pre-approved plan cycle.
- Commercial Delays: Financial institutions cannot market new retirement plan packages to employer clients without a valid, active IRS Opinion Letter.
Related Forms or Schedules
- Form 5306: Application for Approval of Prototype or Employer Sponsored Individual Retirement Arrangement (IRA).
- Form 5306-A: Application for Approval of Prototype Simplified Employee Pension (SEP) or SIMPLE IRA Plan.
- Form 8717: User Fee for Employee Plan Determination Letter Request (used by individual employers for Forms 5300, 5307, 5310).
- Form 5300 / Form 5307: Applications for determination for employee benefit plans.
- Revenue Procedure 2017-41: IRS procedures governing pre-approved defined contribution and defined benefit plans.
Frequently Asked Questions
1. Is the Form 8717-A user fee eligible for the Small Employer Exemption?
No. The small employer user fee exemption under IRC Section 7528(b)(2) applies exclusively to employers requesting determination letters on Form 8717. Institutional providers applying for prototype opinion letters on Form 8717-A must pay the full statutory user fee.
2. Can a financial institution pay for multiple adopting plans on a single Form 8717-A?
Under IRS mass submitter rules, a mass submitter submitting identical word-for-word adopting plans for multiple sponsoring organizations can combine payments using specialized bulk transmittal procedures on Pay.gov, provided each adopting entity is properly listed.
3. Are Form 8717-A user fees refundable if our prototype plan is rejected?
Under IRS procedures, user fees are generally non-refundable once technical review of the master plan document has commenced. If the application is rejected immediately during procedural intake, fees are typically refunded.
4. Does a 403(b) prototype plan require Form 8717-A?
Yes. Sponsoring organizations submitting pre-approved 403(b) plan documents under Revenue Procedure 2021-37 use Form 8717-A to calculate and pay the required opinion letter user fee.
5. Can I pay the Form 8717-A user fee with a paper check?
Because pre-approved and prototype plan submissions are processed digitally through Pay.gov, user fees must be paid electronically via ACH bank debit or credit card. Physical checks are only accepted in rare cases where the IRS authorizes a paper filing exception.
6. How long does it take to receive an IRS Opinion Letter?
For mass submitter lead plans and non-mass submitter pre-approved plans submitted during cyclical windows, IRS technical review typically takes between 12 and 24 months. Word-for-word adopter applications are processed much faster, often within a few months.
Conclusion: Key Takeaways
IRS Form 8717-A is the vital payment and classification document for financial institutions, mass submitters, and pension consulting firms seeking IRS Opinion Letters for pre-approved retirement plans and prototype IRAs. By standardizing user fee calculations under IRC Section 7528, it enables providers to secure official IRS approval for plan documents that support thousands of small business retirement plans nationwide.
To avoid costly intake rejections and cycle delays, always verify your fee category against the latest annual IRS Employee Plans Revenue Procedure, obtain necessary mass submitter authorization letters, and submit your application and payment electronically through Pay.gov.
