Taxpayers using the rates and list of high-cost localities provided in this notice must comply with 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. This revenue procedure modifies the interim amendment deadline set forth in section 15.04(1) of Rev. .21 Rev. Proc. 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. If a 403(b) Pre-approved Plan is intended to be a Retirement Income Account, the plan also must include the provisions set forth in section 5.19. .12 Rev. 1121, during which certain telephonic hearings are permitted. (1) A 403(b) Pre-approved Plan is a 403(b) plan (including a plan covering self-employed individuals) that is made available by a Provider for adoption by Eligible Employers. NOTIFICATION OF ADOPTING EMPLOYER REGARDING FAILURE OF THE FORM OF THE PLAN TO SATISFY 403(b) REQUIREMENTS, SECTION 18. 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. 786, to correct the portion of the year Sedona, Arizona is a high-cost locality under section 5 of Notice 2020-71. 2013-22 provides that the first day of the plans Initial Remedial Amendment Period is the later of January 1, 2010, or the effective date of the plan. .18 Nonstandardized Plan A Nonstandardized Plan is a 403(b) Pre-approved Plan that is not a Standardized Plan. 2013-22 that began on the later of January 1, 2010, or the effective date of the plan, and that, pursuant to Rev. Identical adopter of Mass Submitter plan, _____d. Investment provisions are those provisions that describe the plans methods of investing assets, including provisions such as the availability of loans and self-directed investments. 2019-48 (or successor). If the Provider does not wish to enable Adopting Employers to make loans available under their plans, the Provider would delete from the Providers plan the optional provisions in both the plan document and the adoption agreement. c. The following locality has been removed from the list of high-cost localities: Gulf Breeze, Florida. 2019-39 are to Rev. (c) Change in 403(b) Requirements In the case of a provision that is related to, or integral to, a change in 403(b) Requirements, on the later of (i) the last day of the second calendar year that begins after the issuance of the Required Amendments List (described in section 8 of Rev. 2017-41, as modified by Rev. 2013-22 provides that a 403(b) Pre-approved Plan that is intended to be a Retirement Income Account may be maintained only by a Church or convention or association of churches, including an organization described in 414(e)(3)(A), to provide benefits under 403(b) for its employees or their beneficiaries as described in 1.403(b)-9. SC Comptroller General 1200 Senate Street 305 Wade Hampton Office Building Columbia, SC 29201. The application will be subject to a reduced user fee as provided in Appendix A of Rev. (b) The IRS reserves the right to determine if the changes described in paragraph (a) of this section 11.03(2) are minor (for example, if the changes are not numerous and do not require an in-depth technical review). The principal author of this revenue procedure is Nathanael DeJonge of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations and Employment Taxes). .01 Opinion Letters Applications for an Opinion Letter, including applications filed by Mass Submitters, should be sent to: Internal Revenue Service Attn: Pre-Approved Plans Coordinator Room 6-403, Group 7521 P.O. However, an Adopting Employer of a Nonstandardized Plan that adds language to satisfy the requirements of 415 due to the required aggregation of plans may obtain reliance with regard to 415 by applying for a determination letter using Form 5307 (as updated). However, this notification will only indicate that the plan appears to meet the applicable 403(b) Requirements under review as of the date of the notification. .11 Additional information may be requested When reviewing the application for an Opinion Letter, the IRS may, in its discretion, require any additional information that it deems necessary, including a demonstration of how the variables (options or alternatives) in the 403(b) Pre-approved Plan interrelate to satisfy the 403(b) Requirements. Proc. Comments may be submitted in one of two ways: (1) Electronically via the Federal eRulemaking Portal at www.regulations.gov (type IRS-2021-0011 in the search field on the regulations.gov homepage to find this revenue procedure and submit comments). .25 Remedial Amendment Period The Remedial Amendment Period is the period during which a 403(b) plan may be amended to comply retroactively with the 403(b) Requirements. Beginning October 1, 2021, the high-low per diem rate that can be used for lodging, meals, and incidental expenses increases to $296 (from $292) for travel to high-cost locations and increases to $202 (from $198) for travel to other locations. corporations. 2016-37 to extend the deadline for adopting an interim amendment for a 401(a) pre-approved plan to match the deadline for adopting an interim amendment for a 403(b) pre-approved plan, which is set forth in Rev. Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Except in the case of certain Nonstandardized Plans described in this section 5.06, contributions other than elective deferrals (and earnings thereon) under a 403(b) Pre-approved Plan must vest at least as rapidly as would be required to satisfy the minimum vesting requirements of 411(a)(2)(B) applicable to a qualified plan under 401(a), even if the plan is not subject to the parallel minimum vesting requirements under ERISA 203. For example, if a plan document for a Mass Submitter Flexible Plan includes an optional provision that would permit loans under a Providers plan, the adoption agreement may also include an optional provision that would enable an Adopting Employer to elect whether loans will be available under the plan it adopts. However, if you deliver goods outside the continental U.S., this rate increases to $71per day. Proc. 2. The IRS began accepting Cycle 1 applications for opinion and advisory letters regarding the acceptability under 403(b) of the form of prototype plans and volume submitter plans, respectively, on June 28, 2013. To assist Eligible Employers in achieving operational compliance, updates to the Operational Compliance List currently maintained on the IRS website include changes in 403(b) Requirements that are effective during a calendar year. The Mass Submitter must also immediately notify any affected minor modifier adopter, and the minor modifier adopter must notify all Adopting Employers of any of its 403(b) Pre-approved Plans affected by the failure and the notification must explain the effect on the reliance by Adopting Employers on the Opinion Letter. Simply register to receive our free email edition of the EBIA Weekly Newsletter and we'll send the latest articles straight to your inbox. Accordingly, the provisions described in sections 5.03 through 5.17 (and sections 5.18 and 5.19, if applicable) must be included in the single plan document or the basic plan document or adoption agreement, as appropriate, of every 403(b) Pre-approved Plan, regardless of the terms of any Investment Arrangements under the plan or any other documents that may be incorporated by reference. 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. (Employees can no longer deduct their unreimbursed expenses due to the suspension of miscellaneous itemized deductions by the Tax Cuts and Jobs Act, so these other rates are effectively unavailable to them.) However, the plan may deny an allocation to an employee who is eligible to participate if the employee terminates service during the plan year with not more than 500 hours of service and is not an active employee on the last day of the plan year. An Investment Arrangement may be an annuity contract under 1.403(b)-2(b)(2), a custodial account under 403(b)(7), or a Retirement Income Account. In this case, the Adopting Employer will lose reliance on the Opinion Letter as of the effective date of the amendment 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. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986. 2020-40, sets forth rules for a regular six-year remedial amendment cycle for 401(a) pre-approved plans and an extension of the remedial amendment period and adoption deadline for plan amendments for 401(a) pre-approved plans. (2) Alternatively, by mail to: Internal Revenue Service, Attn: CC:PA:LPD:PR (Rev. Failure to comply with these requirements may result in the loss of eligibility to offer 403(b) Pre-approved Plans and the revocation of Opinion Letters that have been issued to the Provider. The IRS will not consider a plan with such an omission or cross-reference until after the plan has been revised and resubmitted, and the modified plan will be treated as a new application for approval as of the date it is resubmitted, and therefore will be treated as off-cycle, as set forth in section 10.02, if resubmitted after the On-Cycle Submission Period. Proc. A Flexible Plan adopted by a Provider that differs from the Mass Submitter plan only because the Provider has deleted certain optional provisions from its plan in conformance with the Mass Submitters representation described in this paragraph will be treated as a word-for-word identical plan to the Mass Submitter plan. Entering the first letter of the country name will jump to that portion of the listing. A lock ( This notice, which replacesIRS Notice 2020-71(see our Checkpointarticle), announces rates for use under the optional high-low substantiation method, special rates for transportation industry employers, and the rate for taxpayers taking a deduction only for incidental expenses. (c) Existing 403(b) Pre-approved Plan An Existing 403(b) Pre-approved Plan, which is a plan (other than a Newly Approved 403(b) Pre-approved Plan) that has received an Opinion Letter for the immediately preceding Cycle. Previously, the IRS issued Notice 2021-25PDF providing guidance under the Taxpayer Certainty and Disaster Relief Act of 2020, which added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. Proc. Proc. (4) the absence from a plan of a provision required by a change to the 403(b) Requirements (either by statute, or in regulations or other guidance published in the Internal Revenue Bulletin) or integral to the change. .03 Inclusion of Investment Arrangements in the 403(b) Pre-approved Plan A 403(b) Pre-approved Plan includes the Investment Arrangements under the plan in addition to the single plan document or the basic plan document and adoption agreement. Providers that adopt the Flexible Plan may include or delete any optional provision that is designated as an optional provision in the Mass Submitters plan, provided the inclusion or deletion of specific optional provisions conforms to the Mass Submitters written representation to the IRS concerning the choices available to Providers and the coordination of optional provisions. Section 1.403(b)-3(b)(3)(i) generally provides that a contract does not satisfy the requirements of 1.403(b)-3(a) (regarding exclusion of contributions from gross income) unless it is maintained pursuant to a plan. Do you want to read more articles like this one? Instead, the Provider should submit a restated plan, including the amendments, during the next On-Cycle Submission Period. management, More for accounting IR-2021-225, November 16, 2021. For a 403(b) Pre-approved Plan that is a Governmental Plan, an Opinion Letter does not express an opinion, and may not be relied upon, with respect to whether the plan meets any requirements that apply due to a plans coverage of multiple employers that are not aggregated in a single controlled group in a manner consistent with Notice 89-23. The following locality has changed the portion of the year in which it is a high-cost locality: Jamestown/Middletown/Newport, Rhode Island. Proc. Can an ERISA Plan Limit the Time a Claimant Has to File a Lawsuit for Plan Benefits? Proc. If the Provider is offering a word-for-word identical plan (including a Flexible Plan) a copy of the plan need not be submitted. This revenue procedure amplifies Rev. Secure .gov websites use HTTPS 2016-37, including the merger of the M&P and VS programs as provided in Rev. Proc. However, the IRS may, in its discretion, determine whether the processing of off-cycle filings may be prioritized and accelerated. 2014-28 and Rev. An Opinion Letter found to be in error or not in accord with the current procedures of the IRS or the IRSs current interpretation of applicable law may be revoked. Proc. If a Mass Submitter repeatedly fails to identify the modifications, the IRS may deny permission to that Mass Submitter to submit additional modifications. Enter the number you have assigned to the basic plan document associated with the adoption agreement, or for the Single Document Plan if applicable, for which this application is filed. 2016-37 is deleted. .01 Provisions required in all 403(b) Pre-approved Plans Each 403(b) Pre-approved Plan must comply with the requirements set forth in sections 5.03 through 5.17. 424, Rev. financial reporting, Global trade & 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. 2020-49, 2020-48 I.R.B. A Flexible Plan also may include related optional provisions in the adoption agreement. .02 Nonstandardized Plans An Adopting Employer of a Nonstandardized Plan may rely on the plans Opinion Letter that the form of the Adopting Employers plan satisfies the 403(b) Requirements, provided that the Nonstandardized Plan has a currently valid Opinion Letter, the Adopting Employers plan is identical to the Nonstandardized Plan, and the Adopting Employer has not amended the plan other than by choosing options provided under the plan or by making amendments that are described in section 9.03 relating to employer amendments that will not affect reliance. See section 10.02. .05 Eligible Employer An Eligible Employer is an employer described in 403(b)(1)(A). Proc. or 4.d. In the continental United States (CONUS), domestic per diem rates are established by the U.S. General Services Administration. The Department of the Treasury and the Internal Revenue Service have received several requests for further extension of the time period. Revenue rulings and revenue procedures (hereinafter referred to as rulings) that have an effect on previous rulings use the following defined terms to describe the effect: Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Box 7604, Ben Franklin Station, Washington, D.C. 20044. Changes in high-cost localities. The IRS will regard the information and certification described in paragraphs (3) and (4) of this section 10.05 as a representation of a material fact for purposes of issuing an Opinion Letter. .12 Provider telephone numbers Each 403(b) Pre-approved Plan must include the Providers name, address, and telephone number (or a space for the address and telephone number of the Providers authorized representative) for inquiries by Adopting Employers regarding the adoption of the plan, the meaning of plan provisions, or the effect of the Opinion Letter. Proc. General guidance issued in 2019 regarding the use of per diems after the Tax Cuts and Jobs Act remains in effect (see our Checkpointarticle). A Flexible Plan may include only optional provisions that meet the requirements of section 11.03(1)(b), and must be drafted so that the satisfaction of the 403(b) Requirements of the form of any Providers plan will not be affected by the inclusion or deletion of optional provisions. Investment arrangement(s) permitted under the Providers plan: _____a. Also see section 8.03(2), which provides that an Adopting Employer will not have reliance if the Adopting Employers adoption of a 403(b) Pre-approved Plan precedes the issuance of an Opinion Letter for the plan. See Rev. 2016-37 provides that, for a tax-exempt employer, the adoption deadline for an interim amendment set forth in section 15.04(1) and 15.05 applies, as modified by section 15.06(2). .01 Section 403(b) plan that is not a Governmental Plan For a 403(b) Pre-approved Plan that is not a Governmental Plan, a Provider (or the Adopting Employer, if applicable) is considered to have adopted an interim amendment described in section 9.02 timely if the amendment is adopted by the end of the second calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan. .23 Rev. See section 21. Page Last Reviewed or Updated: 07-Oct-2022, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Publication 463, Travel, Entertainment, Gift, and Car Expenses, Small Business, Self-Employed, Other Business, Treasury Inspector General for Tax Administration, Per diem rates for areas outside the continental United States (. 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). (d) in the case of a provision that is integral to a 403(b) Requirement that has been changed, the date the plan is first operated in accordance with the provision, as amended. .05 Expeditious processing accorded Mass Submitter plans Subject to section 12, all Mass Submitter plans, including approved Mass Submitter plans adopted by Providers, will be accorded more expeditious processing than plans submitted by non-Mass Submitters, to the extent administratively feasible. 2018-42, 2018-36 I.R.B. A 403(b) Pre-approved Plan includes an Interim 403(b) Pre-approved Plan, a Newly Approved 403(b) Pre-approved Plan, and an Existing 403(b) Pre-approved Plan, as described in this section 4.27. .15 Uniformed Services Employment and Reemployment Rights Act and 414(u) Each 403(b) Pre-approved Plan must include a provision reflecting the requirements of 414(u). brands, Corporate income (See also 1.415(c)-1(d) and 1.415(f)-1(f) for special rules applicable to 403(b) plans.) 2019-39 provides that the beginning date of the Remedial Amendment Period with respect to a Form Defect first occurring in a 403(b) Pre-approved Plan after the Initial Remedial Amendment Period is the same date that would be applicable if that Form Defect had occurred in an individually designed plan (see section 2.13(1) of this revenue procedure for a description of the date a Remedial Amendment Period begins). Rev. (1) The IRS will, upon the application by a Mass Submitter, issue an Opinion Letter as to the satisfaction of the form of the Mass Submitters plan with the 403(b) Requirements. Proc. Proc. Accordingly, under Rev. Instead, the Mass Submitter should submit a restated plan, including the amendments, during the next Cycle. (See the Form 5305 series, which provides model IRA documents that have been pre-approved by the IRS and for which an opinion letter is not needed. In addition, the IRS reserves the right to require changes after the notification is sent. .05 Section 15.06(2) of Rev. The notification to each Adopting Employer must explain how the revocation affects any reliance an Adopting Employer has on the applicable Opinion Letter and on any determination letter issued. You may use the dropdown box below to select a country. In addition, the Mass Submitter may then submit applications for an Opinion Letter under this section 11.01 for its other plans, regardless of the number of identical adopters of the other plans. See EPCRS, Rev. Proc. 2016-37 is revised to read as follows: In the case of an interim amendment, an employer (or an M&P sponsor or VS practitioner, if applicable) is considered to have timely adopted the amendment if the plan amendment is adopted by the end of the second calendar year following the calendar year in which the change in qualification requirements is effective with respect to the plan. 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. (4) A separate application form (or Appendix A) must be submitted with respect to each adoption agreement for which an Opinion Letter is applied. Proc. 7 For purposes of this revenue procedure, references to Rev. [9] According to these regulations, the first and last days of travel are paid 75% of the daily General Services Administration, PDTATAC, or DOS rate, while all Proc. See section 23.01 of this revenue procedure for more details on the expiration of the limited extension of the Initial Remedial Amendment Period. and accounting software suite that offers real-time (6) a plan grandfathered under Rev. There are location-specific per diem rates that fall under the standard method, especially in states with expensive urban areas or tourist destinations. In general, an interim amendment is considered to have been adopted timely if it is adopted by the end of the remedial amendment period described in section 2.07 of Rev. Proc. 2013-22 to reduce the number of employers required to adopt a 403(b) Pre-approved Plan, to permit an application for an advisory letter for a volume submitter specimen plan to be filed by a Mass Submitter on behalf of a minor modifier of the Mass Submitters plan, and to extend the deadline for submitting a 403(b) Pre-approved Plan to the IRS for an opinion or advisory letter. Proc. 2013-22, a defect in the form of a plan is a provision, or the absence of a required provision, that causes the plan to fail to satisfy the 403(b) Requirements. Error, The Per Diem API is not responding. The high-low M&IE rates increase to $74 (from $71) for travel to high-cost locations and to $64 (from $60) for travel to other locations. Proc. Proc. Proc. (Compare with modified, below). If 4.b. The Provider also must notify each Adopting Employer of the withdrawal of the application and the consequences of the withdrawal to the Adopting Employer. The IRS may, in appropriate circumstances, request documentation of the assumption of sponsorship prior to issuing an Opinion Letter to the new entity. See sections 8.01 and 8.02 for the effect of any other amendments on reliance on an Opinion Letter by the Adopting Employer. services, https://www.irs.gov/pub/irs-drop/n-21-52.pdf, Social Security and Medicare Quickfinder Handbook, Agencies Increase 2023 Surprise Billing IDR Administrative Fee, IRS Proposes Permanent Relief From Physical Presence Requirement for Certain Electronic Signatures. checked): Under penalties of perjury, I declare that the Provider identified in line 2 of this application has adopted a Pre-approved Plan that is identical to the Mass Submitter plan identified in line 8, or is a minor modifier adopter of the Mass Submitter plan identified in line 8. There are almost 400 destinations across the United States for which a special per-diem rate has been specified. 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, or any other employer (such as a non-QCCO or minister). Proc. 2021-4 (as updated annually). 2016-37 sets forth a system of recurring remedial amendment cycles for qualified pre-approved plans, and sets forth plan amendment deadlines for interim and discretionary amendments made to these plans. Proc. (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. Standardized and Nonstandardized Plans may not be combined in one Single Document Plan. Proc. Rev. Since the terms of Investment Arrangements under a 403(b) Pre-approved Plan must be incorporated by reference into the plan and those arrangements may not have any provisions that are inconsistent with 403(b), plan terms that are required in a single plan document or the basic plan document and adoption agreement, as applicable, under this section 5 should not create a conflict with the terms of the Investment Arrangements under a properly drafted 403(b) Pre-approved Plan. brands, Social The IRS will not issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d) of the Code. Proc. Enter the number you have assigned to the adoption agreement for which this application is filed. A cloud-based tax (3) Notwithstanding the preceding provisions of this section 4.21, any person that has an established place of business in the United States where it is accessible during every business day may be a Provider that offers a plan that is word-for-word identical to a plan of a Mass Submitter (as an identical adopter) or a plan that includes Minor Modifications to a plan of a Mass Submitter (as a minor modifier adopter) regardless of the number of Eligible Employers that are expected to adopt the plan. (5) If the plan provides for contributions other than elective deferrals and matching contributions, the plan must satisfy one of the design-based safe harbors described in 1.401(a)(4)-2(b)(2) with respect to the contributions. 2017-18, 2017-5 I.R.B. ) or https:// means youve safely connected to the .gov website. Proc. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. In this case, in order to have reliance, the Adopting Employer would need to re-adopt the 403(b) Pre-approved Plan after the issuance of the Opinion Letter for the plan. Administrative provisions are those provisions that describe the administration of the plan, including the powers, duties, and responsibilities of a plans custodian, administrator, Adopting Employer, and other fiduciaries. 87-50, 1987-2 C.B. Minor modifier adopter of Mass Submitter plan. 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. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted.
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