When the review of 403(b) Pre-approved Plan documents for a specific Cycle is close to being completed, the IRS will announce the date by which Adopting Employers must adopt Newly Approved 403(b) Pre-approved Plans. The remedial amendment period begins on the date on which a change in qualification requirements becomes effective with respect to a plan or, in the case of a provision that is integral to a qualification requirement that has been changed, the first day on which the plan is operated in accordance with the provision as amended. The period described in section 4.02 of Rev. The Introduction at the beginning of this issue describes the purpose and content of this publication. M&IE Rate ($) 1 Breakfast Lunch .02 Nonapplicability of this revenue procedure to 401, 403(a), or 4975(e)(7) plans and to IRAs (including traditional IRAs, Roth IRAs, SEPs, and SIMPLE IRAs) An Opinion Letter will not be issued under this revenue procedure for 401, 403(a), or 4975(e)(7) plans (see Rev. (4) a certification made under penalties of perjury by the plan drafter that the information described in paragraph (3) of this section 10.05 is true and complete. Proc. Additionally, a Cycle 1 403(b) Pre-approved Plan that is intended to be a Retirement Income Account may be amended to permit the participation of employees of certain church-related organizations, as described in 414(e)(3)(B), retroactive to the beginning of Cycle 2. Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries. Minor modifier adopter of Mass Submitter plan. Proc. .02 Requirements As part of the amendment described in section 25.01, the nondiscrimination requirements of 403(b)(12) must be set forth in the plan. .04 This revenue procedure extends the plan amendment deadline for making interim amendments with respect to a change in 403(b) Requirements, for most plans, until the end of the second calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan. Pursuant to section 5.08, the Provider will no longer have the authority to amend the plan on behalf of the Adopting Employer. 92, and Rev. Newsroom, Presidential & Congressional Commissions, Boards or Small Agencies, Diversity, Equity, Inclusion and Accessibility, FY2021 Per Diem Rates for Federal Travelers Released. (a) In general A Flexible Plan is a plan submitted by a Mass Submitter that includes optional provisions, as described in the immediately subsequent paragraph (b) of this section 11.03. 2017-41 sets forth procedures of the Internal Revenue Service (IRS) for issuing opinion letters regarding the qualification in form of pre-approved plans. .07 Section 21.03 of Rev. The new Opinion Letter will recognize the change in sponsorship and will not modify the scope of or change the reliance on the original Opinion Letter. The list of high-cost localities in this notice differs from the list of high-cost localities in section 5 of Notice 2020-71. a. Accordingly, the Treasury Department and the IRS continue to invite further comments on how to improve the Opinion Letter program. .02 Section 15.02 of Rev. The IRS will not issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d) of the Code. An extension of the 30-day time limit will be granted only for good cause. In the case of a plan maintained by one employer, the remedial amendment period ends on the later of: (1) the due date (including extensions) for filing the income tax return for the employers taxable year that includes the date on which the remedial amendment period begins; or (2) the last day of the plan year that includes the date on which the remedial amendment period begins. If 4.b. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legislation and Related Committee Reports. (2) A 403(b) Pre-approved Plan may be structured as an Adoption Agreement Plan or as a Single Document Plan. An Adoption Agreement Plan consists of a basic plan document and an adoption agreement. Rev. 2019-39 provides that an initial amendment that is intended in good faith to correct a Form Defect must be timely adopted by the Provider (or the Adopting Employer, if applicable) for the limited extension of the Initial Remedial Amendment Period to apply. In 2021, the credit was temporarily increased to $3,000 for children ages six through 17 (17 year olds were included) and $3,600 for children under six. Proc. To expedite the review of substantially identical plans that are not Mass Submitter plans, the IRS encourages plan drafters and Providers to include with each Opinion Letter application, if appropriate, a cover letter setting forth the following information: (1) the name and file folder number (if available) of the plan that, for review purposes, the plan drafter designates as the lead plan (including the name and EIN of the Provider); (2) a list of all plans written by the plan drafter that are substantially identical to the lead plan (including the information described in paragraph (1) of this section 10.05 for each plan); (3) a description of each location in the plan for which the application is being submitted that is not word-for-word identical to the language of the lead plan, including an explanation of the purpose and effect of each difference; and. 2016-37 provides that, for a tax-exempt employer, the adoption deadline for an interim amendment set forth in section 15.04(1) and 15.05 applies, as modified by section 15.06(2). Changes to the information in the required appendix will not affect the Adopting Employers ability to rely on an Opinion Letter. .02 Section 403(b) plan that is a Governmental Plan For a Governmental Plan, a Provider (or the Adopting Employer, if applicable) is considered to have adopted an interim amendment described in section 9.02 timely if the plan amendment is adopted by the later of (1) the end of the second calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan, or (2) ninety days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins on or after the date the plan amendment becomes effective. Proc. All rights reserved. management, More for accounting For purposes of determining the applicable tax-filing deadline referenced in section 15.04(1), section 15.06(2) provides the rule used to determine the due date (including extensions) for filing the income tax return for the employers taxable year. 872, as modified by Rev. A .gov website belongs to an official government organization in the United States. 575, to provide that an interim amendment made to a pre-approved plan qualified under 401(a) of the Internal Revenue Code (Code) is adopted timely if the amendment is adopted by the end of the second calendar year after the calendar year in which the change in qualification requirements is effective with respect to the plan. Rev. .01 Issuance of an Opinion Letter The IRS will, upon the application of a Provider, issue an Opinion Letter as to satisfaction of the form of the Providers plan with the 403(b) Requirements. .13 The expiration date of the limited extension of the Initial Remedial Amendment Period for certain Form Defects is provided. Proc. .16 Section 11.03 of Rev. Additionally, the IRS requests that applications be submitted by thumb or flash drive instead of being submitted as paper files, and that the documents be saved in Microsoft Word or Adobe Acrobat PDF format. (6) Pursuant to section 10.10, a Providers failure to disclose a material fact, misrepresentation of a material fact, or failure to accurately provide any of the information called for on any form required by this revenue procedure (or in Appendix A, if used) may result in the inability of Adopting Employers to rely on an Opinion Letter (for example, if there is a failure to disclose a material fact, the IRS may revoke the Opinion Letter due to the failure). See also sections 4.21, 8.03(6), 9.01, 10.10 and 19.01 of this revenue procedure for other circumstances under which an Opinion Letter may be revoked. 2019-48 (or successor) for transition rules for the last 3 months of calendar year 2021. 2019-39 provides that the initial amendment must be adopted by the later of (a) the expiration of the Initial Remedial Amendment Period (that is, June 30, 2020), or (b) the end of the calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan. b. See section 4.26. See Section 2.01 of Rev. _____c. .18 Provisions applicable to Standardized Plans In addition to the requirements set forth in sections 5.03 through 5.17, each Standardized Plan must either provide that the only contributions that an Adopting Employer may elect to provide under the plan are elective deferrals or meet the following requirements: (1) Under 1.415(f)-1(a)(3), all 403(b) annuity contracts purchased by an employer for a participant are treated as one 403(b) annuity contract for purposes of 415. Every 403(b) Pre-approved Plan must therefore incorporate by reference the terms of the Investment Arrangements under the plan. 274 (n) (2) (D), a taxpayer that properly applies the rules of Rev. Can an ERISA Plan Limit the Time a Claimant Has to File a Lawsuit for Plan Benefits? A lock ( .05 An Opinion Letter does not consider issues related to a plans coverage of multiple employers that are not in a single controlled group For a 403(b) Pre-approved Plan that is not a Governmental Plan, an Opinion Letter does not express an opinion, and may not be relied upon, with respect to whether the plan meets any requirements that apply due to a plans coverage of multiple employers that are not in a single controlled group for purposes of 414(b), (c), (m), or (o) and the regulations thereunder. (b) Optional provisions A Flexible Plan may include optional provisions that comply with the requirements set forth in this paragraph. Proc. shipping, and returns, Cookie Do you want to read more articles like this one? The IRS strongly encourages Providers to take advantage of this electronic submission format. In the case of a plan maintained by more than one employer, the remedial amendment period ends on the last day of the tenth month following the last day of the plan year in which the remedial amendment period begins. If a letter requesting changes to the 403(b) Pre-approved Plan is sent to the Provider or an authorized representative, changes responsive to the letter must be received no later than 30 days from the date of the letter, and the response must include either a copy of the plan with the changes highlighted or, if the changes are not numerous, replacement pages. An Adopting Employer of a Nonstandardized Plan that meets the safe harbor requirements described in 401(m)(11) or 401(m)(12) may rely on the plans Opinion Letter with respect to whether the form of the Adopting Employers plan satisfies the requirements of 401(m), unless the Adopting Employers plan provides for the safe harbor contributions under 401(m)(11) or 401(m)(12) to be made under another plan. The per diem rates shown here are averages of all of the per diem rates within each state as of January 2021. 1. In this case, the Adopting Employer will lose reliance on the Opinion Letter as of the effective date of the amendment but the plan will remain eligible for the Cycle system (provided that the Adopting Employer adopts timely interim amendments) until the end of the Cycle that includes the effective date. Proc. Proc. 172 (or its successor). Any ruling request pending with the Service on September 3, 2021, requesting a ruling on the issue described in section 3 of this revenue procedure will be closed and the user fee will be returned in full. tax, Accounting & Nor does it prevent a 403(b) Pre-approved Plan from using Investment Arrangements that are more restrictive than required by 403(b) or the single plan document or the basic plan document and adoption agreement. Per diem rates are on the Internet: Foreign per diem rates Per diem rates for areas outside the continental United States ( OCONUS ), such as Alaska, Hawaii, Puerto Rico Proc. Per Diem Rates Rates are set by fiscal year, effective October 1 each year. 2016-37 sets forth a system of recurring remedial amendment cycles for qualified pre-approved plans, and sets forth plan amendment deadlines for interim and discretionary amendments made to these plans. POPULAR TAX TOPICS The IRS will not review for, and the Opinion Letter will not cover, any provisions included in Investment Arrangements. The application must be sent to the address provided in section 20. or 4.d. You can! 136, as modified by Rev. (6) An Adopting Employer makes an amendment to a 403(b) Pre-approved Plan that removes any of the required provisions of section 5. Proc. Accordingly, section 4.02 of Rev. Retirement income accounts (Note that Retirement Income Account plans must have a separate plan document). .22 Section 111 of Division O of the Further Consolidated Appropriations Act, 2020, Pub. 2019-39, 2019-42 I.R.B. WASHINGTON The Not all locations have their own per diem established, in which case you would use the standard amount of $96 for lodging and $55 for M & IE. 2019-48 (or successor). Beginning October 1, 2021, the high-low per diem rate that can be used for lodging, meals, and incidental expenses increases to $296 (from $292) for travel to high-cost locations .23 Rev. The Treasury Department and the IRS invite comments on this revenue procedure. This revenue procedure also sets forth the rules for determining when Remedial Amendment Periods expire for 403(b) Pre-approved Plans. 2016-37 is revised to read as follows: In the case of an interim amendment, an employer (or an M&P sponsor or VS practitioner, if applicable) is considered to have timely adopted the amendment if the plan amendment is adopted by the end of the second calendar year following the calendar year in which the change in qualification requirements is effective with respect to the plan. Proc. .01 Notification to the IRS A Provider must notify the IRS in writing if a 403(b) Pre-approved Plan is no longer in use by any Adopting Employer or the Provider intends to discontinue the plan. Proc. 2010-48, 2010-50 I.R.B. 2013-22 for issuing an Opinion Letter regarding the satisfaction of the form of a 403(b) Pre-approved Plan with respect to the 403(b) Requirements. 2. However, an Adopting Employer of a Standardized Plan that adds language to satisfy the requirements of 415 due to the required aggregation of plans may obtain reliance with regard to 415 by applying for a determination letter using Form 5307 (as updated). ): If 4.c. (a) New plan In the case of a new plan, on the later of (i) the last day of the second calendar year following the calendar year in which the plan is put into effect, or (ii) in the case of a Governmental Plan, 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins after the end of the plans initial plan year. 2019-39 provide that the period covered by the Initial Remedial Amendment Period is referred to as Cycle 1 and that Cycle 2 begins after the Initial Remedial Amendment Period expires. .09 Any Nonstandardized Plan may provide for either safe harbor or non-safe harbor hardship distributions. and accounting software suite that offers real-time FY 2023 Per Diem Highlights. Proc. (c) Change in 403(b) Requirements In the case of a provision that is related to, or integral to, a change in 403(b) Requirements, on the later of (i) the last day of the second calendar year that begins after the issuance of the Required Amendments List (described in section 8 of Rev. Proc. 140, which sets forth areas of the Internal Revenue Code (Code) relating to issues on which the Internal Revenue Service (Service) will not issue letter rulings or determination letters. 743,5 sets forth the procedures of the IRS for issuing opinion and advisory letters for 403(b) Pre-approved Plans for Cycle 1, which began on the later of January 1, 2010, or the effective date of the plan, and that, ended on June 30, 2020. In addition, the Adopting Employer must complete a new dated adoption agreement or signature page if it modifies any prior elections or makes new elections. See section 23.01 of this revenue procedure for more details on the expiration of the limited extension of the Initial Remedial Amendment Period. High-cost localities. (1) The IRS will, upon the application by a Mass Submitter, issue an Opinion Letter as to the satisfaction of the form of the Mass Submitters plan with the 403(b) Requirements. Proc. (4) the absence from a plan of a provision required by a change to the 403(b) Requirements (either by statute, or in regulations or other guidance published in the Internal Revenue Bulletin) or integral to the change. In this case, the Adopting Employer will be treated as never having had any reliance on the Opinion Letter and will be treated as never having been eligible for the Cycle system. 5 For purposes of this revenue procedure, references to Rev. Based on local market costs of mid-priced hotels, lodging per diem rates provide caps, or maximum amounts, that can be reimbursed to federal employees for lodging and meals while on official travel. New Mileage Rate for 2022 Share This Print The new rate for business miles driven for travel taking place on or after July 1, 2022, is $0.625 per mile , an increase from $0.585 in January 2022. Section 10.02 and 10.03 of Rev. .30 Standardized Plan A Standardized Plan is a 403(b) Pre-approved Plan that meets the requirements set forth in section 5.18. (1) A plans Initial Remedial Amendment Period is the Remedial Amendment Period provided under Rev. or 4.b., checked): Under penalties of perjury, I declare that I have examined this application, including accompanying statements, and to the best of my knowledge and belief it is true, correct, and complete. (d) in the case of a provision that is integral to a 403(b) Requirement that has been changed, the date the plan is first operated in accordance with the provision, as amended. General guidance issued in 2019 regarding the use of per diems after the Tax Cuts and Jobs Act remains in effect (see our Checkpointarticle). .01 Section 403(b) plan that is not a Governmental Plan For a 403(b) Pre-approved Plan that is not a Governmental Plan, a Provider (or the Adopting Employer, if applicable) is considered to have adopted an interim amendment described in section 9.02 timely if the amendment is adopted by the end of the second calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan. See section 8.04 for situations in which an Adopting Employer may obtain a determination letter using Form 5307 (as updated). 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