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March 31, 2020 Deadline to Correct 403(b) Plan Defects


By Nicholas DaPaz, CironeFriedberg, LLP

Revenue Procedure 2013-22 (Rev. Proc. 2013-22) issued by the IRS established a program for issuing opinion and advisory letters for § 403(b) pre-approved plans (prototype and volume submitter plans).  The IRS began accepting applications for opinion and advisory letters regarding the acceptability under § 403(b) starting June 28, 2013.  Previously, the IRS did not review and approve § 403(b) plans.

Per the IRS website, “Rev. Proc. 2013-22 also provides for a remedial amendment period (RAP) to allow an eligible employer to retroactively correct defects in the form of its written § 403(b) plan in order to satisfy the written plan requirements in the § 403(b) regulations either by timely adopting a § 403(b) pre-approved plan or by otherwise timely amending its written § 403(b) plan,” but only if the plan had adopted a written plan document by December 31, 2009.  If a plan did not adopt a written plan document by December 31, 2009, the failure to timely adopt the written plan document must be corrected using the Voluntary Compliance Program of the IRS.  The first day of the RAP is the later of January 1, 2010, or the plan’s effective date.  

The last day of the RAP was later defined by the IRS to be March 31, 2020 under Revenue Procedure 2017-18 (Rev. Proc. 2018-17).  All necessary provisions of § 403(b) plans must either be adopted or adjusted and made effective by this date in form and operation from the beginning of the RAP to comply with IRS regulations. 

Please contact us if you have any questions related to the RAP or the IRS’ restatement requirements.

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