.20 Opinion Letter An Opinion Letter is a written statement issued by the IRS to a Provider or Mass Submitter that the form of a 403(b) Pre-approved Plan satisfies the 403(b) Requirements. In this case, the Adopting Employer generally will lose reliance on the Opinion Letter as of the effective date of the amendments but the plan will remain eligible for the Cycle system (provided that the Adopting Employer adopts timely interim amendments) until the end of the Cycle that includes the effective date. (5) In the case of multiple employers that are not part of the same controlled group (as determined under 414(b), (c), (m), or (o)) participating in the plan, each Adopting Employer must identify whether it is a Church, QCCO, non-QCCO, or minister. The Provider must also inform each Adopting Employer that, notwithstanding the Providers discontinuance of its sponsorship, if the Adopting Employer adopts another 403(b) Pre-approved Plan, retroactive to the date of the discontinued sponsorship, by the end of the calendar year following the calendar year in which the Provider discontinues sponsorship of the plan, then the Adopting Employers plan will be treated as though it had continued to be a 403(b) Pre-approved Plan, and not converted to an individually designed plan (and the Adopting Employer will not be treated as having adopted the new 403(b) Pre-approved Plan after the end of an Employer Adoption Window, if applicable). Similarly, a later deadline is provided for a 403(b) Pre-approved Plan that is a Governmental Plan. Under 147(f)(2)(B), an issue will be treated as having been approved by any governmental unit if the issue is approved by the applicable elective representative of the governmental unit after a public hearing following reasonable public notice, or by voter referendum of the governmental unit. However, the terms of the single plan document or the basic plan document and adoption agreement, as applicable, must satisfy the requirements of applicable law and sections 5.03 through 5.17 (and sections 5.18 and 5.19, if applicable) independent of any Investment Arrangements under the plan or any other documents incorporated by reference. Proc. Proc. If an employer pays per diem allowances that exceed what is deemed substantiated, however, the employer must either treat the excess as taxable wages or require actual substantiation. If there nevertheless is a conflict, the terms of the single plan document or the basic plan document and adoption agreement, as applicable, must control. 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. Further, if more than one governmental unit is required to hold a public hearing, the hearings may be combined as long as the combined hearing affords the residents of all of the participating governmental units a reasonable opportunity to be heard. .13 The expiration date of the limited extension of the Initial Remedial Amendment Period for certain Form Defects is provided. High-cost localities. Proc. For purposes of determining the applicable tax-filing deadline referenced in section 15.04(1), section 15.06(2) provides the rule used to determine the due date (including extensions) for filing the income tax return for the employers taxable year. .06 Vesting A 403(b) Pre-approved Plan may provide a vesting schedule for contributions other than elective deferrals, rather than provide for full and immediate vesting of the contributions. .24 Rev. The plan also must include a statement that the Provider will inform the Adopting Employer of any amendments made to the plan or of the discontinuance of the plan. See section 5.02 of Rev. Proc. Proc. or 4.b., checked): Under penalties of perjury, I declare that I have examined this application, including accompanying statements, and to the best of my knowledge and belief it is true, correct, and complete. The Service will not issue rulings on whether an act of self-dealing occurs when a private foundation (or other entity subject to 4941) owns or receives an interest in a limited liability company or other entity that owns a promissory note issued by a disqualified person. Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. Phone: (803) 734-2121 Accordingly, under Rev. See section 4.05 of Rev. Employers can use the high-low method for substantiating lodging, meals, and incidental expenses, or for substantiating meal and incidental expenses only (M&IE). The Provider must have a procedure to notify an Adopting Employer of amendments and restatements of the plan and to inform the Adopting Employer, when applicable, of the need to timely adopt or amend the plan, including in the case of both initial adoption and restatement of the plan. The plan also must state that the nondiscrimination requirements will be applied to any employee other than an employee of a QCCO or Church. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. 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. If the Adopting Employer selects an allocation formula for contributions other than elective deferrals that satisfies one of the design-based safe harbors in 1.401(a)(4)-2(b)(2), and, if the allocation formula is based on compensation, selects a safe harbor compensation definition that satisfies 1.414(s)-1(c), then the Adopting Employer may rely on an Opinion Letter with respect to the nondiscriminatory amounts requirement under 401(a)(4), if applicable. See section 22. Thus, a separate 403(b) Pre-approved Plan is required for a plan that is intended to constitute a Retirement Income Account. Do you want to read more articles like this one? See section 10.02. Within 30 days following the date the notification is provided, either the Mass Submitter may revise the plan so that the modifications are minor and resubmit the revised plan, or the Provider may submit the application form (or Appendix A) and an additional user fee in an amount equal to the difference between a non-Mass Submitter plan application user fee and a minor modifier adopter application user fee. 2016-37 in future guidance to reflect guidance issued after the publication of Rev. Proc. .18 Provisions applicable to Standardized Plans In addition to the requirements set forth in sections 5.03 through 5.17, each Standardized Plan must either provide that the only contributions that an Adopting Employer may elect to provide under the plan are elective deferrals or meet the following requirements: (1) Under 1.415(f)-1(a)(3), all 403(b) annuity contracts purchased by an employer for a participant are treated as one 403(b) annuity contract for purposes of 415. To be considered timely, section 13.03 of Rev. The plan may provide options as to whether some or all of the employees described in 1.410(b)-6 are excluded, provided that the criteria for excluding employees described in 1.410(b)-6 apply uniformly to all employees. Identical adopter of Mass Submitter plan, _____d. 2019-39 provides that an Eligible Employer adopting a 403(b) Pre-approved Plan generally must adopt an interim amendment with respect to a change in 403(b) Requirements. .02 Additional provisions Section 5.18 sets forth additional provisions required for all Standardized Plans. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. If the changes are not received within 30 days, the application may be considered withdrawn. Proc. Upon receipt of the application for an Opinion Letter, the IRS will, as soon as administratively feasible, issue an Opinion Letter with respect to the Providers plan (provided that an Opinion Letter has been issued with respect to the Mass Submitters plan). 743,5 sets forth the procedures of the IRS for issuing opinion and advisory letters for 403(b) Pre-approved Plans for Cycle 1, which began on the later of January 1, 2010, or the effective date of the plan, and that, ended on June 30, 2020. 2. 8 For an individually designed plan, the Remedial Amendment Period for a Form Defect related to a change in 403(b) Requirements generally ends on the last day of the second calendar year that begins after the issuance of the Required Amendments List in which the change in 403(b) Requirements appears. 2016-37, which is applicable to a governmental plan within the meaning of 414(d), and which is determined by reference to the interim amendment deadline for a plan that is not a governmental plan, is modified. Proc. A Mass Submitter is treated as a Mass Submitter with respect to all of its plans, provided the 15 unaffiliated Provider requirement is met with respect to at least one plan. Depending upon the length of the IRS review process, Eligible Employers will have approximately a two-year period to adopt the updated plan (Employer Adoption Window). Your online resource to get answers to your product and Proc. (a) In general A Flexible Plan is a plan submitted by a Mass Submitter that includes optional provisions, as described in the immediately subsequent paragraph (b) of this section 11.03. .10 Effect of failure to disclose material fact or to accurately provide information A failure to disclose to the IRS a material fact, a misrepresentation of a material fact in the application, or the failure to accurately provide any of the information called for on any form or Appendix A required by this revenue procedure may result in the inability of Adopting Employers to rely on the Opinion Letter (for example, if there is a failure to disclose a material fact, the IRS may revoke the Opinion Letter due to the failure). 2013-22 is considered a Cycle 1 Opinion Letter. .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. (4) The IRS, in its sole discretion, determines that a Nonstandardized Plan is an individually designed plan due to amendments to the plan that are extensive (that is, the plan of the Adopting Employer as amended is no longer substantially similar to the Nonstandardized Plan of the Provider). If the amount of an allowance is deemed substantiated because it does not exceed the applicable limit, any unspent amounts do not have to be taxed or returned. .04 An Adopting Employer of a Nonstandardized Plan that makes amendments to the plan that are not extensive will lose reliance on the Nonstandardized Plans Opinion Letter, but may obtain reliance that the form of the plan, as amended, satisfies the 403(b) Requirements by requesting a determination letter using Form 5307 (as updated), under procedures similar to the procedures applicable to 401(a) pre-approved plans. 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. The weekly Internal Revenue Bulletins are available at www.irs.gov/irb/. 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. 2021-37), Room 5203, P.O. This revenue procedure modifies section 4.02 of Rev. .24 Remedial Amendment Cycle A Remedial Amendment Cycle or Cycle means one of a series of recurring Remedial Amendment Periods applicable to 403(b) Pre-approved Plans, during which a Provider submits a proposed 403(b) Pre-approved Plan for review and approval by the IRS, and during which the plan, once approved, is adopted by Eligible Employers. In addition, the adoption agreement must include a cautionary statement to the effect that the failure to properly complete the adoption agreement may result in failure of the form of the plan to meet the 403(b) Requirements. Elective deferrals (other than Roth), _____e. .03 This revenue procedure provides that the On-Cycle Submission Period for Cycle 2 applications will begin on May 2, 2022, and end on May 1, 2023. 2015-22, and clarified by Rev. Proc. 2017-18, as modified by Notice 2020-35, expired on June 30, 2020. .23 Rev. .03 Section 15.04(1) of Rev. For purposes of the high-low substantiation method, the per diem rates in lieu of the rates described in Notice 2020-71 (the per diem substantiation method) are $296 for travel to any high-cost locality and $202 for travel to any other locality within CONUS. See section 8.03(7) regarding limitations on reliance. accounting firms, For 2016-37 provides that, for a governmental plan within the meaning of 414(d), the adoption deadline for an interim amendment is: the later of (1) the deadline that would apply under the rules of section 15.04(1), or (2) 90 days after the close of the third regular legislative session of the legislative body with authority to amend the plan that begins on or after the date the amendment becomes effective. Proc. Similarly, for example, if an Adopting Employers Single Document Plan offers both Investment Arrangements that permit loans and Investment Arrangements that do not permit loans, then the single plan document must include provisions reflecting the 403(b) Requirements, including 1.403(b)-6, and 1.72(p)-1, and must provide that, to the extent permitted by the terms governing the applicable Investment Arrangement, participant loans are available.
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