The IRS announced on March 11 that it has updated the information package containing sample plan provisions concerning pre-approved 403(b) plans. The update is first since March 2013.
The IRS has made changes to the language that concerns the following terms and topics:
The sample provisions address requirements the IRS will consider in reviewing those plans. Whether a 403(b) pre-approved plan must include plan provisions corresponding to particular sample provisions generally depends on its features, and the language of a sample provision may or may not be acceptable or suitable in different plans depending on the context in which it is used. However, every section 403(b) pre- approved plan must satisfy the requirements of Rev. Proc. 2013-22.
The sample provisions have been written for 403(b) prototype plans. However, except for those sample provisions that relate to requirements applicable only to prototype plans, the sample provisions in this information package also generally are suitable for use in volume submitter plans that include an adoption agreement. They also may be appropriately modified to be suitable in volume submitter plans that do not include an adoption agreement.
The IRS has made changes to the language that concerns the following terms and topics:
- compensation
- contribution formula
- direct rollovers
- disabled
- elective deferrals
- exchanges
- hardship distributions of elective deferrals
- highly compensated employee
- investment arrangement
- limitations on annual additions
- participant
- severance from employment
- timing of contributions
- vendors of investment arrangements
- vesting
The sample plan provisions satisfy certain requirements of Internal Revenue Code Section 403(b), as well as Revenue Procedures 2007-71 and 2013-22. The package is intended to assist plan sponsors who are drafting 403(b) pre-approved plans — prototype and volume submitter plans — and to accelerate the review and approval of the plans.
The sample provisions address requirements the IRS will consider in reviewing those plans. Whether a 403(b) pre-approved plan must include plan provisions corresponding to particular sample provisions generally depends on its features, and the language of a sample provision may or may not be acceptable or suitable in different plans depending on the context in which it is used. However, every section 403(b) pre- approved plan must satisfy the requirements of Rev. Proc. 2013-22.
The sample provisions have been written for 403(b) prototype plans. However, except for those sample provisions that relate to requirements applicable only to prototype plans, the sample provisions in this information package also generally are suitable for use in volume submitter plans that include an adoption agreement. They also may be appropriately modified to be suitable in volume submitter plans that do not include an adoption agreement.
- Log in to post comments