IRS modifies 403(b) pre-approved plan procedures, extends filing deadline

The IRS has modified its procedures for issuing opinion and advisory letters for 403(b) pre-approved plans (i.e., 403(b) prototype plans and 403(b) volume submitter plans). The modifications are effective April 14, 2014. The deadline to submit 403(b) pre-approved plans for opinion and advisory letters is extended to April 30, 2015.

The new procedures also modify the procedures issued under Rev. Proc. 2013-22. Under the modifications, to qualify as a pre-approved plan sponsor only 15 (rather than 30) eligible employers must be expected to adopt the plan. In addition, only 15 rather than 30 prototype sponsors or volume submitters are required for a person to qualify as a mass submitter.

The modifications allow a person to sponsor a plan as a minor modifier of a volume submitter specimen plan of a mass submitter under the same conditions as apply for a person sponsoring a plan as a minor modifier of a prototype plan of a mass submitter. An application for an advisory letter for a volume submitter specimen plan can be made by a mass submitter on behalf of a minor modifier of the mass submitter’s plan. The modifications provide that a mass submitter’s initial submission under the pre-approved plan program must be accompanied by the applications for opinion or advisory letters filed on behalf of at least 15 (rather than 30) word-for-word identical adopters of the basic plan document or specimen plan, as applicable. A mass submitter may submit additional applications on behalf of other pre-approved plan sponsors as minor modifiers of a volume submitter specimen plan of the mass submitter after the 15 word-for-word identical adopter requirement has been met.

Source: IRS Rev. Proc. 2014-28.

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