IRS Publishes Sample 403(b) Prototype Document
Language
April 14, 2009 (PLANSPONSOR.com) - The Internal
Revenue Service has published some sample prototype 403(b)
language - and wants to know what you think.
The draft information package contains samples of plan
provisions that satisfy certain specific requirements of
the Internal Revenue Code applicable to section 403(b)
plans, and as provided in Announcement 2009-34,
"interested persons" are invited to submit
comments to the IRS on the sample plan provisions.
In publishing the language, the IRS notes that the
sample language is designed for use in a new Employee Plans
Section 403(b) Prototype Plan Program.
"The Section 403(b) Prototype Program will operate
generally in the same manner as the current Master and
Prototype Program for plans qualified under section 401(a)
of the Internal Revenue Code," according to the
announcement.
The IRS notes that a sponsoring organization (generally a
service provider) using the prototype document will submit
a section 403(b) plan document to the IRS for review, and
if the plan satisfies the requirements of section 403(b),
the IRS will issue a favorable Opinion Letter to the
sponsor with respect to the plan document. The sponsor may
then offer the approved plan document for adoption by
employers.
The IRS notes that the draft sample language is based on
language previously developed for other IRS prototype plan
programs (see Listing of Required Modifications for Defined
Contribution Plans, Cash or Deferred Arrangements,
Traditional IRAs and Roth IRAs) as well as the model
section 403(b) plan language published in Revenue Procedure
2007-71.
The IRS notes that this information package "…contains
samples of plan provisions that have been found to satisfy
certain requirements of section 403(b) of the Internal
Revenue Code, the final regulations issued July 26, 2007,
Revenue Procedure 2007-71, and Revenue Procedure _____
[section 403(b) prototype plan revenue procedure].", and
that "this language may or may not be acceptable in
different plans depending on the context in which used,"
the IRS noted.
"We have prepared this package to assist prototype sponsors
who are drafting section 403(b) prototype plans, and to
enable us to process and approve section 403(b) prototype
plans more quickly," the agency explained.