Form 5306-A – Opinion Letter Guide for Sponsors

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The first thing to know about Form 5306-A is who does not file it. Employers setting up a SEP or SIMPLE do not use this form; they adopt a model document in the 5304 or 5305 series. Form 5306-A is the sponsor's application for an IRS favorable opinion letter on a prototype SEP under section 408(k) or a prototype SIMPLE IRA under section 408(p), and only the seven sponsoring organization categories listed on Line 8 may file it.

There is also a reason the form may not be going anywhere right now. As of March 14, 2022 the IRS suspended accepting 5306-A applications until further notice, so the practical task today is often confirming that status before preparing a package. If filings do reopen, the routing still splits by carrier, USPS to the Covington, Kentucky P.O. Box and private delivery services to the Florence, Kentucky street address, and you would confirm the current revision before relying on the 11-2019 PDF.

Key Takeaways

• Form 5306-A is the IRS application a sponsor uses to request an opinion letter for a prototype SEP under section 408(k) or a prototype SIMPLE IRA plan under section 408(p). You do not adopt a plan with this form.
• As of March 14, 2022, the IRS temporarily suspended accepting 5306-A (and 5306) applications for prototype IRAs, SEPs, and SIMPLE IRA plans. The suspension remains in place “until further notice,” and sponsors may continue to rely on previously issued favorable opinion letters.
• The current 5306-A PDF is Rev. 11-2019. If and when filings resume, confirm the latest revision and instructions before you prepare a package.
• If the program reopens, IRS Employee Plans submission addresses are P.O. Box 12192, Covington, KY 41012-0192 for USPS and 7940 Kentucky Drive, Florence, KY 41042 for private delivery. Always recheck the active address before mailing.
• Employers do not file Form 5306-A. They adopt a model document, such as Forms 5304-SIMPLE, 5305-SIMPLE, 5305-SEP, or 5305A‑SEP, or they adopt an IRS‑approved prototype from a sponsor.

What Form 5306-A is, and what it is not

Form 5306-A is the sponsor’s application for an IRS opinion letter on the form of a prototype SEP or SIMPLE IRA plan. It is not an adoption agreement for an employer and it is not a determination letter on a specific employer’s plan. It is a conformity review of your prototype document’s language against the Code and guidance. When the program is open, the resulting opinion letter provides reliance on the form of your document, subject to any limits stated in the letter.

Because employers often ask, a quick contrast helps:

• Adoption, funding, and day‑to‑day operations happen under model documents or approved prototypes.
• 5306-A is how a bank, federally insured credit union, savings and loan association that qualifies as a bank, insurance company, regulated investment company, trade or professional association, or approved non-bank trustee gets the IRS to say the prototype language meets the rules in sections 408(k) or 408(p).

2025 program status at a glance

The prototype IRA opinion letter program is paused. Sponsors may rely on prior favorable letters and continue to use existing model forms while the IRS updates the program for recent legislation, including SECURE and SECURE 2.0.

Here is the most important practical update for your team in 2025:

• The IRS temporarily suspended accepting applications for 5306 and 5306‑A effective March 14, 2022, and has reiterated that suspension in subsequent annual revenue procedures. The IRS will announce when applications may be submitted under a revised program. Keep monitoring the Announcements page and annual procedures.
• The “About Form 5306‑A” page remains live for background and links to the form PDF, but shows no new developments. Treat it as reference, not a green light to file.

Who should use this form when filings resume

If you sponsor a prototype SEP or SIMPLE IRA plan document used by many employers, Form 5306‑A is your path to an IRS opinion letter. Typical eligible sponsors include banks, federally insured credit unions, savings and loan associations that qualify as banks, insurance companies, regulated investment companies, trade or professional associations (other than employee associations), and approved non-bank trustees. Individual employers do not file 5306‑A.

SEP versus SIMPLE, in sponsor terms

• Choose the SEP track when your prototype reflects an employer‑funded arrangement under section 408(k).
• Choose the SIMPLE IRA track when your prototype supports salary deferrals with employer contributions for small employers that had 100 or fewer employees earning $5,000 or more in compensation during the preceding calendar year.
• If an employer simply needs a plan, they typically use model Forms 5305‑SEP or 5305A‑SEP for SEP, or 5304‑SIMPLE or 5305‑SIMPLE for SIMPLE, or they adopt your already approved prototype.

Quick comparison table

Item	SEP prototype (408(k))	SIMPLE IRA prototype (408(p))
Employee deferrals	Not allowed for new SEPs (SARSEPs under §408(k)(6) were repealed by P.L. 104-188 effective Dec. 31, 1996; only pre-1997 grandfathered plans may continue)	Yes, salary reduction with annual limits
Employer funding	Employer contributions	Either a 3% match OR a 2% nonelective contribution – employer elects one each year, not both
Typical employer size	Any	Generally 100 or fewer employees who earned $5,000 or more in compensation during the preceding calendar year
Employer filing 5306‑A?	No, sponsor files	No, sponsor files

As a sponsor, you will map each substantive provision in your prototype to LRMs and cite article and page references in your submission. That mapping makes the IRS review faster and protects your review time later.

Why so many sponsors get stuck

From what I see, the biggest friction is not writing the prototype. It is operational discipline. Teams rush workpapers, skip naming standards, and bury reviewers in back‑and‑forth because the document set is not packaged for a clean first read. That costs you weeks. A small investment in document hygiene, internal SLAs, and a consistent review ladder often cuts revision cycles in half.

If your accounting or tax delivery engine already runs on SOPs, standardized workpapers, and predictable turnaround, you feel the relief. If not, borrow from the best practices below. This is exactly the kind of discipline Accountably brings to production work for firms, which is why our clients ask us to set up the same controls on their internal projects too. Keep it minimal, keep it rigorous.

How the opinion letter process works, step by step

When the IRS reopens the program, expect a familiar flow. Here is the practical, field‑tested checklist sponsors use to move from draft to decision.

1. Build the right document set

• Prototype plan document and all appendices or addenda.
• Amendments with an explanation of changes and where they slot into the base document.
• Crosswalk to LRMs, citing article or section and page for every required provision.
• Clean and redline versions to simplify reviewer attention.

2. Confirm fees and pay correctly

• User fees apply to opinion letter requests. The fee schedule and procedures are published annually in the Employee Plans revenue procedure. Check the current year before paying.

3. Verify the current mailing instructions

• If the program reopens and paper submissions are in play, addresses used by Employee Plans include P.O. Box 12192, Covington, KY 41012‑0192 for USPS and 7940 Kentucky Drive, Florence, KY 41042 for private delivery. Always confirm the active address on IRS.gov the week you ship.

4. Assign ownership and deadlines

• Give one owner authority over the submission packet, internal SLAs, and issue logs.
• Use a three‑layer review ladder, such as preparer, senior, and quality reviewer, before executive sign‑off. This protects partner time and stops avoidable rework.

5. Track status and keep a clean trail

• Maintain a single source folder with dated versions and a submission checklist.
• Record every IRS correspondence item, date, and requested change.

Where to get the form and instructions

• The current PDF for Form 5306‑A is Rev. 11‑2019. Download it from IRS.gov when you are ready to prepare, and recheck for a newer revision before you assemble your packet.
• The “About Form 5306‑A” page hosts links to the latest revision and related items. It is also where the IRS will post future updates.

What to do during the suspension

While the opinion letter program is paused, sponsors still have work to do.

• Keep your prototype current and internally approved. Map SECURE and SECURE 2.0 changes with clear redlines and explanations.
• Maintain reliance. The IRS confirms that adopters may rely on previously issued favorable opinion letters while the program is suspended.
• Use IRS model forms to establish new arrangements if needed, including 5304‑SIMPLE, 5305‑SIMPLE, 5305‑SEP, and 5305A‑SEP.
• Watch the IRS Announcements page and the annual revenue procedure for the reopening notice and any revised procedures.

SEP vs. SIMPLE, model choices and limits employers ask about

Employers often ask sponsors content questions while they wait for program reopening. Two items come up the most in 2025.

• SIMPLE IRA employee deferral limit is 16,500 for 2025, with a standard catch‑up of 3,500 at age 50 or older. SECURE 2.0 also adds a higher catch‑up for ages 60 to 63, which is 5,250 in 2025.
• For certain “applicable SIMPLE” plans, a higher basic deferral cap applies. For 2025 that higher amount is 17,600. Plan eligibility rules apply, so sponsors should publish plain‑English eligibility notes for employers.

Addresses and packaging, ready format

If the program reopens with paper submissions still in scope, use a sponsor‑friendly cover page that includes:

• Plan type and whether the submission is initial or amendment.
• Contact person, direct phone, and email.
• User fee payment details and confirmation.
• A numbered list of enclosures.
• A clean LRM crosswalk and a clear redline legend.

Tip from the review chair: clarity on the first page reduces questions later. A one‑page “what changed” summary can save a week.

Process discipline, briefly

If your firm struggles with version chaos or review bottlenecks, put structure first. Standard naming, a single truth folder, and a clear review ladder reduce friction. This is the same delivery architecture we promote with accounting teams, because it protects partner time and makes deadlines predictable.

Sponsor checklist you can copy

• Confirm program status and any new revenue procedure.
• Stabilize your prototype text, then prepare clean and redline sets.
• Build an LRM crosswalk with article and page references.
• Draft a one‑page change summary for reviewers.
• Verify user fee and payment method for the then‑current year.
• Validate the mailing address and shipping method.
• Assign a single owner, due dates, and an issue log.
• Run a three‑layer internal review before executive sign‑off.
• Keep a submission archive with all correspondence.

Resources

• About Form 5306‑A and current PDF. Use the IRS page as your canonical source for the form and revision dates.
• Prototype IRA program status. Read Announcement 2022‑6 and the annual revenue procedure section that continues the suspension notice.
• Employee Plans submission addresses. Check the current EP address page before you mail.
• SIMPLE IRA limits and catch‑up rules for 2025. Confirm base and higher limits, including the special catch‑up for ages 60 to 63.

A quick word on delivery discipline

If you lead an accounting firm or plan document team, you already know the real bottleneck is delivery, not demand. Clean workpapers, standard file naming, layered reviews, and predictable SLAs turn stressful filings into normal work. That is how we run production for firms. If you want help building that same control into your back office, our team at Accountably can set up disciplined offshore delivery that fits your templates, tools, and review style, then get out of your way.

Common Mistakes We See Every Season

Six patterns derail prototype filings every season, and almost all of them trace back to confusing who the form is actually for and which deadline calendar applies.

Reusable Checklists

Three copy-paste checklists for the prototype filing SOP. Each one runs the documents through the gates the IRS actually inspects on Form 5306-A.

Keep 5306-A Season From Stalling

Prototype work does not run on the same April calendar as 1040 season, but it has its own kind of pressure. Per the IRS Paperwork Reduction Act notice on the Form 5306-A instructions, the IRS estimates almost 19 hours per filing once you add 15 hours 46 minutes of recordkeeping, 1 hour 23 minutes of learning the law, and 1 hour 42 minutes of preparing and sending the package. Multiply that across a sponsor's SEP and SIMPLE IRA prototype book and the load adds up fast, especially as COLA updates and the next annual user-fee revenue procedure arrive each year.

The fix is not more hours, it is a tighter packet. Sponsors who treat the Lines 9a through 9f SEP review and the Lines 10a through 10r SIMPLE review as two structured walkthroughs (instead of one open-ended drafting exercise) move to the user-fee verification faster, absorb COLA updates without rewriting the prototype each year, and keep the package whole before it goes to Covington or Florence.

• Map prototype language back to the line items it answers, so a reviewer can match each Yes or No on Lines 9a through 9f or 10a through 10r to a specific clause without searching.
• Anchor the SEP minimum-compensation prong (Line 9a) to the current IRS COLA notice rather than a hard-coded dollar figure, so the prototype stays current as the threshold moves.
• Keep the plan document and the underlying IRA document separate; per the Form 5306-A instructions, the IRS will not issue an opinion letter on a combined master document that fuses the SEP or SIMPLE IRA with the IRA itself.
• Run a match-versus-nonelective check on Lines 10j and 10k before each annual notice cycle, so the employer election survives the 60-day pre-year salary-reduction window under IRC §408(p).
• Update the user-fee citation to the latest Rev. Proc. 20XX-4 in the filing checklist, and re-verify the shipping address mix on every packet: USPS to P.O. Box 12192, Covington, KY 41012-0192, and private delivery services to 7940 Kentucky Drive, Florence, KY 41042.

This is the kind of structured review work that scales as the prototype book grows. Our tax services team handles the SEP and SIMPLE IRA compliance walkthroughs alongside sponsor counsel, so the senior reviewer's time stays focused on the judgment calls instead of the line-by-line checklist.

FAQs

Does 5306‑A let an employer adopt a plan?

No. Employers adopt model forms or IRS‑approved prototypes. Form 5306‑A is only for sponsors who seek an IRS opinion letter on the form of their prototype SEP or SIMPLE IRA plan.

Is the IRS accepting 5306‑A applications right now?

No. The IRS suspended accepting applications for prototype IRAs, SEPs, and SIMPLE IRA plans effective March 14, 2022, and has restated that suspension in later guidance. The Service will announce when applications may be submitted under a revised program.

Where would I send a package if the program reopens?

For EP submissions, the IRS lists USPS to P.O. Box 12192, Covington, KY 41012‑0192 and private delivery to 7940 Kentucky Drive, Florence, KY 41042. Confirm the active address the day you mail.

What types of plan can a sponsor get an opinion letter on with Form 5306-A?

Line 2a covers two plan types: a prototype simplified employee pension (SEP) under section 408(k), or a prototype savings incentive match plan for employees of small employers (SIMPLE IRA plan) under section 408(p). The application can be an initial submission (line 2b) or an amendment (line 2c).

What user fee applies to a Form 5306-A application?

Line 1 asks the sponsor to enter the amount of the user fee submitted with the application. The instructions direct sponsors to Rev. Proc. 2019-4, 2019-1 I.R.B. 146, or the latest annual update, to determine the proper user fee before filing.

Can a salary-reduction SEP (SARSEP) still be created on Form 5306-A?

No new SARSEPs may be established. The Small Business Job Protection Act of 1996 (P.L. 104-188) repealed section 408(k)(6) effective December 31, 1996, except for a SEP whose terms provided for elective deferrals as of that date. Line 3 is checked only when a grandfathered SEP contains elective deferral provisions.

What eligibility rules must a prototype SEP meet?

Line 9a tests whether the SEP covers all employees who have attained age 21, performed service for the employer in 3 of the immediately preceding 5 years, and received at least $600 in compensation for the year. The $600 figure is the amount stated on the November 2019 form and is adjusted for cost of living in later years.