This Remedial Amendment Period applies regardless of whether the Form Defect relates to a new plan or is due to an amendment (without regard to whether that amendment was required to be adopted) provided that the plan or amendment was adopted timely and in good faith with the intent of complying with the 403(b) Requirements. FICAFederal Insurance Contributions Act. accounts, Payment, The list of high-cost localities in this notice differs from the list of high-cost localities in section 5 of Notice 2020-71. a. PROVISIONS REQUIRED IN 403(b) PRE-APPROVED PLANS, SECTION 7. See Rev. One location has been added to the list of high-cost locations, one has been removed, and one that remains on the list is now considered high-cost for a different portion of the calendar year. Proc. Section 16.01 of Rev. (1) A Provider is any person (including, if applicable, a Mass Submitter) that: (a) has an established place of business in the United States where it is accessible during every business day, and (b) represents to the IRS in its application for an Opinion Letter that it reasonably expects at least 15 Eligible Employers to adopt one of the 403(b) Pre-approved Plans of the Provider. 2019-39 provides that the initial amendment must be adopted by the later of (a) the expiration of the Initial Remedial Amendment Period (that is, June 30, 2020), or (b) the end of the calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan. This revenue procedure announces that the Service will not issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d) of the Code. (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). The Mass Submitter must certify under penalties of perjury that the plan of the Provider, except for the delineated changes, is word-for-word identical to the plan for which the Mass Submitter will be receiving or has received an Opinion Letter. If the new ruling does more than restate the substance of a prior ruling, a combination of terms is used. See section 10.11. (3) Additionally, the Adopting Employer of a Standardized Plan may not rely on the Opinion Letter for the Standardized Plan with respect to: (a) whether the timing of any amendment to the Adopting Employers plan (or series of amendments) satisfies the nondiscrimination requirements of 1.401(a)(4)-5(a), except with respect to plan amendments granting past service that meet the safe harbor described in 1.401(a)(4)-5(a)(3) and are not part of a pattern of amendments that significantly discriminates in favor of highly compensated employees, or (b) whether the Adopting Employers plan satisfies the effective availability requirement of 1.401(a)(4)-4(c) with respect to any benefit, right, or feature. .06 Prior to the On-Cycle Submission Period for Cycle 2, the IRS will issue a Cumulative List that identifies changes in the 403(b) Requirements that will be taken into account with respect to a plan document submitted to the IRS for Cycle 2 and that were not taken into account by the IRS in its review during Cycle 1. The new Opinion Letter will recognize the change in sponsorship and will not modify the scope of or change the reliance on the original Opinion Letter. Proc. 2019-39 provides that a Provider (or Eligible Employer) is considered to have adopted an interim amendment timely if the amendment is adopted by the later of (1) the end of the calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan, or (2) in the case of a Governmental Plan, the later of (a) the end of the calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan, or (b) 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins on or after the date the plan amendment becomes effective. 2019-39 provide that the period covered by the Initial Remedial Amendment Period is referred to as Cycle 1 and that Cycle 2 begins after the Initial Remedial Amendment Period expires. 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. .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. The IRS strongly encourages Providers to take advantage of this electronic submission format. making. Proc. See sections 4.06 and 5.04 of Rev. .04 Provision regarding conflicting provisions in Investment Arrangement or other documents Each 403(b) Pre-approved Plan must provide that, in the event of any conflict between the terms of the single plan document or the basic plan document and adoption agreement, as applicable, and the terms of Investment Arrangements under the plan (or of any other documents incorporated by reference into the plan), the terms of the single plan document or the basic plan document and adoption agreement, as applicable, shall govern. Usage is subject to our Terms and Privacy Policy. 18 cents per mile driven for medical or moving purposes for qualified active duty members of the Armed Forces, up 4 cents from the rate for 2021. 2019-39, as modified by Rev. 2016-37 (that is, a disqualifying provision that results in the failure of the plan to satisfy the qualification requirements of the Code by reason of a change in those requirements that is effective after December 31, 2001, or that is integral to such disqualifying provision). For a Governmental Plan, Related Employers means all employers that are aggregated with the Adopting Employer in a manner consistent with Notice 89-23, 1989-1 C.B. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. An Opinion Letter issued to a Provider is not transferable. IR-2021-225, November 16, 2021. 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. DISCDomestic International Sales Corporation. The plan also must state that the nondiscrimination requirements will be applied to any employee other than an employee of a QCCO or Church. 2016-37 and Rev. 157 (as updated annually), sets forth the general procedures of the IRS regarding the issuance of Employee Plans determination letters, including determination letters for 401(a) pre-approved plans. 2019-48, 2019-51 I.R.B. Proc. 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. (6) All benefits, rights, and features under the plan (other than those, if any, that have been prospectively eliminated) are currently available to all employees benefiting under the plan. The written notification must be sent to the address provided in section 20 and must refer to the file folder number appearing on the latest Opinion Letter issued. .01 Provider plan amendments generally Providers are required to amend their 403(b) Pre-approved Plans to ensure that the form of their plans continues to satisfy the 403(b) Requirements. IRS updates per diem guidance for business travelers and their employers. These provisions must be included in the adoption agreement of an Adoption Agreement Plan. 2017-18 provides that the last day of the Initial Remedial Amendment Period is March 31, 2020. 2013-22 provides that the IRS will announce, in subsequent guidance, the expiration date of the Initial Remedial Amendment Period for all Eligible Employers. of products and services. Per Diem Rates Maximum travel per diem rates for current and prior years for the continental United States are available at the General Service Administration (GSA) Website: Per Diem Rates Any area that is not specifically listed is assigned the standard CONUS (Continental United States) per diem rate. (1) Except as otherwise provided in this section 8.02, an Adopting Employer of a Nonstandardized Plan may not rely on the plans Opinion Letter with respect to the requirements, if applicable, of: (b) 415, if the Adopting Employer or any of its Related Employers maintain another 403(b) plan covering any of the same participants as the Nonstandardized Plan. The Service has determined that it is in the interest of sound tax administration not to issue rulings on such transactions while it reviews their proper tax treatment. 2013-22 establishes an Initial Remedial Amendment Period, which permits an Eligible Employer to retroactively correct defects in the form of its written 403(b) plan in order to satisfy the written plan requirement in the 403(b) regulations by timely adopting a 403(b) Pre-approved Plan or by otherwise timely amending its plan. No additional user fee will be charged if an inadequate submission is amended to be in substantial compliance and is resubmitted to the IRS within 30 days following the date the Provider is notified of the inadequacy. 2017-41, 2017-29 I.R.B. As of January 2021, the per diem allowance is $66 per day in the continental United States. Proc. .07 Separate applications required for Single Document Plans A separate plan and application is required for a Single Document Plan. L. 116-94, 133 Stat. Pursuant to section 9.05(1), beginning on the first day of that plan year, Employer Xs plan is treated as an individually designed plan. 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. Annuity contracts issued by an insurance company, _____c. The IRSs review of a Providers or Mass Submitters application for an Opinion Letter for a 403(b) Pre-approved Plan will consider only the terms of the single plan document or the basic plan document and adoption agreement, as applicable. Your online resource to get answers to your product and Proc. Foreign Per Diem Rates by Location DSSR 925. See section 5.02 of Rev. 2019-39) in which the change in 403(b) Requirements appears, or (ii) in the case of a Governmental Plan, 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins on or after the date of issuance of the Required Amendments List in which the change in 403(b) Requirements appears. (5) The issuance of an Opinion Letter does not constitute a determination by the IRS that an Adopting Employers plan is a Governmental Plan or that an Adopting Employer is a Church or QCCO. Proc. .02 Section 15.02 of Rev. Annual high-low rates. The special M&IE rates for taxpayers in the transportation industry are $69 for any locality of travel in the continental United States (CONUS) and $74 for any locality of travel outside the continental United States (OCONUS). .02 Extension of deadline for initial amendment To be considered timely, the date by which the initial amendment described in section 4.11 must be adopted is extended to the later of (1) June 30, 2020, or (2) 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. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. Integrated software WASHINGTON The Internal Revenue Service today issued guidance for business .09 Any Nonstandardized Plan may provide for either safe harbor or non-safe harbor hardship distributions. 2016-37, 2016-29 I.R.B. See section 4.11 of this revenue procedure for more details regarding the limited extension of the Initial Remedial Amendment Period. The Department of the Treasury and the IRS intend to revise Rev. 2021-4 (as updated annually), disregarding references therein to 7476. NOTIFICATION OF ADOPTING EMPLOYER REGARDING FAILURE OF THE FORM OF THE PLAN TO SATISFY 403(b) REQUIREMENTS, SECTION 18. (1) a provision that causes a plan to fail to satisfy the 403(b) Requirements; (2) the absence of a provision that causes a plan to fail to satisfy the 403(b) Requirements; (3) a provision of a plan that is integral to a 403(b) Requirement that has been changed (either by statute, or in regulations or other guidance published in the Internal Revenue Bulletin); or. 2019-39 also states that a Provider must submit an application for an Opinion Letter during the On-Cycle Submission Period that relates to an applicable Cycle. Rev. See section 23.02. 3. Find the answers to all your clients' questions about Social Security and Medicare in this essential Quickfinder handbook by Thomson Reuters Checkpoint. 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. 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. Section 1.415(f)-1(f)(2) includes a special rule providing that, if a participant on whose behalf a 403(b) annuity contract is purchased is in control of any employer for a limitation year, the 403(b) annuity contract is aggregated with all other defined contribution plans maintained by that employer. 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. An Adopting Employer that fails to adopt a newly approved version of a 403(b) Pre-approved Plan by the end of any Employer Adoption Window will no longer be treated as maintaining a 403(b) Pre-approved Plan. Revocation of an Opinion Letter may be applied retroactively. Every Standardized Plan must include plan language reflecting these rules. Proc. Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries. Proc. 96-49, 1996-2 C.B. 2021-4 (updated annually), (2) if an Opinion Letter had been issued for the 403(b) Pre-approved Plan for the preceding Cycle, a signed certification that all necessary amendments required by the IRS for the form of the Providers plan to continue to satisfy the 403(b) Requirements have been made and communicated to all Adopting Employers, and (3) any attachment or other document that the application form (or Appendix A, if used) indicates is required. A per diem rate can be used for the combined costs of Lodging and M&IE. 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). The application must include a copy of the plan document and any adoption agreement, if applicable. Further, it sets forth a system of recurring Remedial Amendment Periods for correcting Form Defects in 403(b) Pre-approved Plans first occurring after the Initial Remedial Amendment Period (that is, after June 30, 2020), and provides a limited extension of the Initial Remedial Amendment Period for certain Form Defects. An Eligible Employer that adopts a Standardized Plan as an amendment to a plan other than a Standardized Plan may not rely on the Opinion Letter for the Standardized Plan with respect to whether a benefit, right, or feature that is prospectively eliminated satisfies the current availability requirements of 1.401(a)(4)-4, if applicable. 2019-39 provides that an initial amendment that is intended in good faith to correct a Form Defect must be timely adopted by the Provider (or the Adopting Employer, if applicable) for the limited extension of the Initial Remedial Amendment Period to apply. .04 Additional submission requirements for interim amendments If the 403(b) Pre-approved Plan has received an Opinion Letter for the preceding Cycle, in addition to the application described in section 10.03, the Provider must submit a certification that all interim amendments (and initial amendments, as described in section 4.11, if applicable) on the applicable Cumulative List have been made, and a cover letter summarizing how the provisions of the plan are affected by each amendment. Proc. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. See section 25. .08 All 403(b) Pre-approved Plans are required to provide a definition of Employee. If an application is withdrawn, the case may be referred to IRS Employee Plans Examinations. Please note the meal and incidental rates are inclusive of GST. As updated annually ), disregarding references therein to 7476 your product and Proc the extent practicable, pertinent references! To these subjects are contained in the continental United States, disregarding references therein to 7476 Security Medicare... 2021-4 ( as updated annually ), disregarding references therein to 7476 SECTION of! Copy of the Initial Remedial Amendment Period new ruling does more than the... An adoption agreement of an Opinion Letter issued to a Provider is not transferable regarding the limited extension of Initial... 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