IRS Further Expands Availability of Rev. Rul. 81-100 Group Trusts, and Extends Time to Spin Off Puerto Rican Participants from U.S. Plans


In Rev. Rul. 2011-1, released in advance form on December 16, 2010, the Internal Revenue Service (the Service) expanded the types of employee benefit plans that may participate in Rev. Rul. 81-100 group trusts, effective January 11, 2011, and extended until December 31, 2011, the time to spin off the assets related to Puerto Rican participants in a U.S. qualified retirement plan to a separate Puerto Rico plan.

Rev. Rul. 81-100 Group Trusts

By way of background, the Internal Revenue Code treats as tax-exempt the trusts funding a number of retirement or employee benefit plans subject to, among other things, an exclusive benefit requirement – generally, that the trust assets be used only for the exclusive benefit of plan participants and their beneficiaries. In Rev. Rul. 81-100, the Service continued a ruling position dating to 1956 that, subject to specified conditions, certain types of retirement plans may pool their trust assets for investment in a group trust, without violating the exclusive benefit rule, and the group trust would enjoy the same tax exemption as the trusts for the participating plans. In Rev. Rul. 2004-67, the Service permitted additional types of retirement arrangements to participate in these group trusts.

In Rev. Rul. 2011-1, the Service again expanded the types of plans that may invest in Rev. Rul. 81-100 trusts, and also clarified or added certain requirements for these trusts, as follows. It appears that all Rev. Rul. 81-100 trusts are subject to the restated requirements, and not just group trusts that take advantage of the expanded availability provided by Rev. Rul. 2011-1.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Written by:


Sutherland Asbill & Brennan LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.