Practice Management
The IRS in Revenue Procedure (Rev. Proc.) 2020-40 has expanded the situations in which the plan amendment deadline for discretionary amendments made to qualified pre-approved plans and 403(b) pre-approved plans may be extended.
Rev. Proc. 2020-40 modifies Section 15.05 of Rev. Proc. 2016-37 and Section 12.02 of Rev. Proc. 2019-39. These modifications are consistent with the extensions of the plan amendment deadlines for discretionary amendments set forth in Section 8.02 of Rev. Proc. 2016-37 regarding qualified individually designed plans and Section 6.02 of Rev. Proc. 2019-39 regarding 403(b) individually designed plans.
Rev. Proc. 2016-37
Rev. Proc. 2016-37 sets forth procedures for obtaining determination letters for qualified individually designed plans and opinion letters for qualified pre-approved plans submitted to IRS, including providing plan amendment deadlines for interim and discretionary amendments made to these plans.
Rev. Proc. 2020-40 revises Section 15.05 of Rev. Proc. 2016-37 so that it reads as follows:
Section 15.04 of this revenue procedure applies unless:
(1) a statutory provision, or regulations or other guidance published in the Internal Revenue Bulletin, sets forth a deadline to timely adopt a discretionary amendment with respect to a plan year that is either earlier or later than the deadlines under section 15.04; or
(2) a statutory provision or guidance provides another specific deadline for the adoption of a particular type of interim amendment that is either earlier or later than the deadlines under section 15.04.
Rev. Proc. 2019-39
Rev. Proc. 2019-39 sets forth procedures for obtaining opinion and advisory letters for 403(b) pre-approved plans submitted to the IRS, and provides plan amendment deadlines for interim and discretionary amendments made to 403(b) pre-approved plans and for discretionary amendments made to 403(b) individually designed plans.
Rev. Proc. 2020-40 revises Section 12.02 of Rev. Proc. 2019-39 so that it reads as follows:
Exceptions to section 12.01 plan amendment deadlines. Section 12.01 applies unless:
(1) a statutory provision, or regulations or other guidance published in the Internal Revenue Bulletin, sets forth a deadline to timely adopt a discretionary amendment with respect to a plan year that is either earlier or later than the deadlines under section 12.01; or
(2) a statutory provision or guidance provides another specific deadline for the adoption of a particular type of interim amendment that is earlier or later than the deadlines under section 12.01.
Effective Date
Rev. Proc. 2020-40 and the modifications it makes to Rev. Proc. 2016-37 and Rev. Proc. 2019-39 became effective Sept. 2, 2020.
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