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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.
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.
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