403(b) Pre-Approved Plan Program Established
The IRS will start accepting applications for opinion and advisory letters for prototype and volume submitter 403(b) plans on June 28, 2013.
Under the program, pre-approved plan sponsors may apply to the IRS for an:
- opinion letter (for prototype plans), or
- advisory letter (for volume submitter plans).
Revenue Procedure 2013-22 (to be published in Internal Revenue Bulletin 2013-18 on April 29, 2013) establishes the new program and explains certain:
- requirements that pre-approved 403(b) plans must satisfy,
- responsibilities of pre-approved plan sponsors,
- procedures for applying for opinion and advisory letters, and
- conditions under which an eligible employer that adopts a pre-approved 403(b) plan has reliance that the form of the plan meets IRC section 403(b) and the final 403(b) regulations.
Revenue Procedure 2013-22 also describes procedures for the retroactive remedial amendment of plans to satisfy the requirements of IRC Section 403(b) and the regulations. These procedures will permit the retroactive remedial amendment of 403(b) plans regardless of whether a plan is a pre-approved plan under the new program.
The IRS has published sample plan language that pre-approved 403(b) plan sponsors may use in preparing to submit their plans to the IRS for approval.
The IRS asked for public comments on a draft revenue procedure to establish a program for the pre-approval of section 403(b) prototype plans in Announcement 2009-34, 2009-18 I.R.B. 916. Based on the public comments Revenue Procedure 2013-22 significantly modifies and expands the scope of the program that was described in the draft revenue procedure. As a result, more employers will be able to use the new program and rely on opinion and advisory letters.
Additional Resources
- An Overview of Pre-Approved 403(b) Retirement Plans (video)
- How to Apply for a 403(b) Plan Opinion or Advisory Letter (video)
- Duties of a Pre-Approved 403(b) Plan Sponsor (video)
