Compliance

IRS Issues List of Pre-Approved 403(b) Plan Documents

Plan sponsors that adopt a 403(b) preapproved plan by the end of the remedial amendment period will be deemed to satisfy the 2007 final regulations.

By Rebecca Moore editors@plansponsor.com | June 12, 2017

The Internal Revenue Service has published its list of pre-approved prototype and volume submitter 403(b) plan documents.

The list includes the name of the prototype plan document sponsor or volume submitter plan practitioner. The list also includes the file folder number (FFN) assigned to each plan. The third digit of the FFN lets plan sponsors and advisers know the type of plan being approved.  For example, a number 2 or 3 respectively denote a standardized or non-standardized prototype plan; a 5 or 6 depicts a volume submitter plan.

Section 21 of Revenue Procedure 2013-22 establishes a remedial amendment period under which an eligible employer can retroactively correct form defects in its written 403(b) plan in order to satisfy the written plan document requirement of the 2007 final regulations. Revenue Procedure 2017-18 provides that the last day of the remedial amendment period for 403(b) plans is March 31, 2020.

An eligible plan sponsor that adopts on or before the end of this remedial amendment period a prototype or volume submitter plan with an opinion or advisory letter retroactive to the first day of such remedial amendment period will automatically be considered to have corrected any form defects (except to the extent any document incorporated by reference into the plan must be amended).

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