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Compliance October 3, 2008
IRS Developing Pre-approved Plan Program for 403(b)s
October 3, 2008 (PLANSPONSOR.com) - The Internal
Revenue Service (IRS) said it is developing plan approval
programs for 403(b) plans similar to the current programs
offered for 401(a) tax-qualified plans.
Reported by
Rebecca Moore
The programs include a pre-approved plan program and a determination letter program for individually drafted plans. New IRS regulations effective January 1, 2009, require all 403(b) programs to have in place a formal, written plan document.
The Service expects the pre-approved 403(b) plan program to open in spring 2009, and the individually designed plan program to open in early 2011.
In addition, the IRS said it anticipates posting a draft 403(b) Listing of Required Modifications (LRM) in order for plans to qualify for approval on its Web site in early fall, and will request public comment.
The Service said it will issue a revenue procedure by the end of the calendar year that will open the pre-approved 403(b) plan program for submissions from prototype sponsors.
The announcement was in the Fall, 2008 Edition of Employee Plans News .
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