Failure to comply with the requirements imposed on the Provider by this revenue procedure may result in the loss of eligibility to be a Provider and the revocation of Opinion Letters that have been issued to the Provider. As provided in section 7, the plan of such an employer will become an individually designed plan unless the employer adopts a Newly Approved 403(b) Pre-approved Plan during the Employer Adoption Window for the Cycle for which the application was submitted. Proc. .20 Notice 2020-35, in relevant part, modifies Rev. 2016-37 in future guidance to reflect guidance issued after the publication of Rev. For this purpose, a plan is a written defined contribution plan that, in both form and operation, satisfies the requirements of the final regulations under 403(b).4. 2013-22 to change the address to which applications for an opinion or advisory letter should be submitted and to insert a user fee that was previously omitted. Proc. .03 A 403(b) Pre-approved Plan may utilize either of two formats: a single plan document or a basic plan document with an adoption agreement. 2019-39 are to Rev. Section 403(b) Pre-approved Plan adoption agreement number (Each different adoption agreement associated with a single basic plan document must be assigned a 3-digit number, beginning with 001. It is not used where a position in a prior ruling is being changed. Standardized and Nonstandardized Plans may not be combined in one Single Document Plan. 2016-37, including the merger of the M&P and VS programs as provided in Rev. .02 Reduced procedural requirements for Providers that use Mass Submitter plans A Provider of a plan of a Mass Submitter must obtain an Opinion Letter. However, if you deliver goods outside the continental U.S., this rate increases to $71per day. Proc. corporations. 2019-39 to expand the situations in which the plan amendment deadline for discretionary amendments made to a 403(b) Pre-approved Plan may be extended. .01 Rev. 2021-30, 2021-31 I.R.B. If the Provider is offering a word-for-word identical plan (including a Flexible Plan) a copy of the plan need not be submitted. Revocation may be effected by a notice to the Provider to which the Opinion Letter was originally issued. If a Mass Submitter fails to identify a significant modification, the failure will be considered a material misrepresentation, and an Adopting Employer may not rely on the Opinion Letter that may be issued with respect to the plan for the modification or any other provision of the plan that may be affected by the modification. Box 7604, Ben Franklin Station, Washington, D.C. 20044. Proc. An extension of the 30-day time limit will be granted only for good cause. WASHINGTON The The new Opinion Letter will recognize the change in sponsorship and will not modify the scope of or change the reliance on the original Opinion Letter. Proc. .04 Employer Adoption Window When the review of 403(b) Pre-approved Plan documents for a specific Cycle is close to being completed, the IRS will announce the Employer Adoption Window with respect to that Cycle, which will be an approximately two-year period during which Adopting Employers may adopt Newly Approved 403(b) Pre-approved Plans. Under the high-low method, the per diem rate for all Proc. Proc. In the case of a plan maintained by one employer, the remedial amendment period ends on the later of: (1) the due date (including extensions) for filing the income tax return for the employers taxable year that includes the date on which the remedial amendment period begins; or (2) the last day of the plan year that includes the date on which the remedial amendment period begins. For example, the adoption agreement, if applicable, should be amended to require that an Adopting Employer identify whether it is a non-QCCO (in which case, its employees participating in the plan would be subject to the nondiscrimination requirements of 403(b)(12)). In the case of a change in entity with respect to a Provider, an Opinion Letter issued to the Provider may not be utilized by the changed entity. In addition, the Adopting Employer must complete a new dated adoption agreement or signature page if it modifies any prior elections or makes new elections. 6 See section 2.20 of this revenue procedure for the extension of the expiration date of March 31, 2020, to June 30, 2020, by Notice 2020-35, 2020-25 I.R.B. In the case of an Adoption Agreement Plan, the adoption agreement must state that it is to be used with only one basic plan document and must identify that document. .12 Inadequate submissions The IRS will return, without further action or refunding the user fee, plans that are not in substantial compliance with the 403(b) Requirements, or plans that are so deficient that they cannot be reviewed in a reasonable period of time. In this case, (1) the basic plan document must include provisions reflecting the 403(b) Requirements, including 1.403(b)-6, and 1.72(p)-1, and (2) the basic plan document and adoption agreement, as completed by the Adopting Employer, must provide that, to the extent permitted by the terms governing the applicable Investment Arrangement, participant loans are available. The Internal Revenue Service (IRS) separates expenses Proc. 2020-40, 2020-38 I.R.B. (4) Under the plan, allocations are determined on the basis of total compensation. Proc. 2019-39, as modified by Rev. In the event the plan is treated as a non-Mass Submitter plan, the IRS will notify the Mass Submitter in writing of its determination. In the interest of sound tax administration, the Service answers inquiries from individuals and organizations regarding their status for tax purposes and the tax effects of their acts or transactions. The period described in section 4.02 of Rev. .22 Qualified Church-Controlled Organization or QCCO A Qualified Church-Controlled Organization or QCCO is a church-controlled tax-exempt organization described in 501(c)(3) that is a qualified church-controlled organization within the meaning of 3121(w)(3)(B). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. 2021-4 (updated annually)). 172 (or its successor). For example, if the forms of annuity benefit available under a plan are described in Investment Arrangements under the plan, the terms of the Investment Arrangements must satisfy, if applicable to the plan, the joint and survivor annuity requirements of ERISA 205 and any applicable related rules, such as rules relating to transfers of benefits that are subject to the joint and survivor annuity requirement, and may not have any provisions that are inconsistent with 403(b). .04 Section 15.06(1)(a) of Rev. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. For example, a change that limits the number of participant loans or a change that adds a new choice of plan entry date would be considered a Minor Modification. .05 Section 15.06(2) of Rev. Proc. 26 CFR 601.201: Rulings and determination letters. For travel within the continental United States, the optional high-low method designates one per diem rate for all high-cost locations and another for all other locations. .06 IRS discretion The IRS may, in its discretion, decline to issue an Opinion Letter for other types of plans or issues not described in this section. Proc. Rev. (4) An Adopting Employer may not rely on an Opinion Letter if any Investment Arrangement under the plan or any other document that may be incorporated by reference provides that the terms of the Investment Arrangement or other document shall govern in the event of any conflict between the terms of the Investment Arrangement or other document and the terms of the plan. The Provider also must notify each Adopting Employer of the withdrawal of the application and the consequences of the withdrawal to the Adopting Employer. 82-102, 1982-1 C.B. and services for tax and accounting professionals. 2019-39 establishes a system of recurring Remedial Amendment Periods for 403(b) individually designed plan Form Defects first occurring after the Initial Remedial Amendment Period expires (that is, after June 30, 2020). Rul. Proc. 2013-22 that began on the later of January 1, 2010, or the effective date of the plan, and that, pursuant to Rev. .04 Provision regarding conflicting provisions in Investment Arrangement or other documents Each 403(b) Pre-approved Plan must provide that, in the event of any conflict between the terms of the single plan document or the basic plan document and adoption agreement, as applicable, and the terms of Investment Arrangements under the plan (or of any other documents incorporated by reference into the plan), the terms of the single plan document or the basic plan document and adoption agreement, as applicable, shall govern. The principal author of this revenue procedure is Patrick Gutierrez of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). accounts, Payment, .06 Prior to the On-Cycle Submission Period for Cycle 2, the IRS will issue a Cumulative List that identifies changes in the 403(b) Requirements that will be taken into account with respect to a plan document submitted to the IRS for Cycle 2 and that were not taken into account by the IRS in its review during Cycle 1. Proc. Based on local market costs of mid-priced hotels, lodging per diem rates provide caps, or maximum amounts, that can be reimbursed to federal employees for lodging and meals while on official travel. (2) An Adopting Employer of a Nonstandardized Plan may rely on the plans Opinion Letter with respect to the requirements of 410(b), if applicable, if all nonexcludable employees benefit under the Adopting Employers plan. .02 IRS retains information Even though an application is withdrawn, the IRS will retain all correspondence and documents associated with that application and will not return them to the Provider. (2) Notwithstanding the other provisions of this section 8, an Opinion Letter issued for a Standardized Plan may not be relied upon with respect to the requirements of 415 if the Adopting Employer or any of its Related Employers maintains another 403(b) plan covering any of the same participants as the Standardized Plan, unless the other plan is also a Standardized Plan. 2019-39 provides that every 403(b) Pre-approved Plan will have a recurring Cycle. .04 Cycle A Cycle is a Remedial Amendment Cycle, as defined in section 4.24. .02 This revenue procedure modifies the procedures for the 403(b) Pre-approved Plan program to be more similar to the procedures applicable under the 401(a) pre-approved plan program in several ways, including: simplifying the 403(b) Pre-approved Plan program by eliminating the distinction between prototype and volume submitter plans; providing that the IRS will issue a Cumulative List of Changes in the 403(b) Requirements (Cumulative List) identifying the 403(b) Requirements that the IRS will take into account in reviewing 403(b) Pre-approved Plans submitted for Cycle 2; making 403(b) Pre-approved Plan program provisions regarding reliance on an Opinion Letter more similar to the provisions applicable under the 401(a) pre-approved plan program, including provisions that permit the submission during the Employer Adoption Window of an application for a determination letter using Form 5307, Application for Determination for Adopters of Modified Volume Submitter Plans, by (1) an Adopting Employer of a Nonstandardized Plan that makes amendments to the plan that are not extensive, or (2) an Adopting Employer of any 403(b) Pre-approved Plan (whether a Standardized Plan or a Nonstandardized Plan) that adds language to satisfy the requirements of 415 due to the required aggregation of plans;2 and. .25 Rev. (7) Pursuant to section 11.03(2)(c), if a Mass Submitter fails to identify a significant modification, the failure will be considered a material misrepresentation, and an Adopting Employer may not rely on an Opinion Letter issued with respect to the plan for the modification or any other provision of the plan that may be affected by the modification. 2019-39. The Service is currently reviewing its prior ruling position on transactions described in section 3 of this revenue procedure. .09 Material furnished to Adopting Employers A Provider must furnish each Adopting Employer with a copy of the approved 403(b) Pre-approved Plan, copies of any subsequent amendments, and the most recently issued Opinion Letter for the plan from the IRS. Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). .10 Governmental Plan A Governmental Plan is a governmental plan within the meaning of 414(d). Proc. The per diem rates in lieu of the rates described in Notice 2021 -52 (the meal and incidental expenses only substantiation method) are $74 for travel to media, Press These provisions must be included in the adoption agreement of an Adoption Agreement Plan. A Provider may apply for Opinion Letters for any number of 403(b) Pre-approved Plans. See EPCRS, Rev. In addition, an Opinion Letter will not be issued under this revenue procedure for prototype plans intended to meet the requirements for individual retirement arrangements under 408. To which the Opinion Letter was originally issued 2019-39 provides that every 403 irs per diem rates 2021 international. Ben Franklin Station, Washington, D.C. 20044 $ 71per day in a prior ruling position on transactions described section. 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