Proc. [9] According to these regulations, the first and last days of travel are paid 75% of the daily General Services Administration, PDTATAC, or DOS rate, while all (1) a provision that causes a plan to fail to satisfy the 403(b) Requirements; (2) the absence of a provision that causes a plan to fail to satisfy the 403(b) Requirements; (3) a provision of a plan that is integral to a 403(b) Requirement that has been changed (either by statute, or in regulations or other guidance published in the Internal Revenue Bulletin); or. (b) Amendment to existing plan In the case of an amendment to an existing plan not relating to, or integral to, a change in 403(b) Requirements, on the later of (i) the last day of the second calendar year following the calendar year in which the amendment is adopted or effective, whichever is later, 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 following the calendar year in which the amendment is adopted or effective, whichever is later. Proc. Proc. .20 Notice 2020-35, in relevant part, modifies Rev. (6) All benefits, rights, and features under the plan (other than those, if any, that have been prospectively eliminated) are currently available to all employees benefiting under the plan. .06 Employer Adoption Window See section 4.24. .05 Expediting review of substantially identical plans The IRS reserves the right to review applications in any order that will expedite the processing of Opinion Letter applications, subject to section 12 regarding off-cycle filing. Page Last Reviewed or Updated: 07-Oct-2022, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Publication 463, Travel, Entertainment, Gift, and Car Expenses, Small Business, Self-Employed, Other Business, Treasury Inspector General for Tax Administration, Per diem rates for areas outside the continental United States (. The IRS currently allows owner-operators to deduct 80% of (1) In general, provided that the provisions of a basic plan document are identical for all plans using that document, separate adoption agreements may be associated with the same basic plan document. In relevant part, section 12 of Rev. 2019-39 establish a system of cyclical 403(b) Pre-approved Plan Remedial Amendment Periods following the expiration of the Initial Remedial Amendment Period (that is, after June 30, 2020). In the case of an initial submission of a 403(b) Pre-approved Plan under this revenue procedure, the Mass Submitters application also must be accompanied by applications for an Opinion Letter filed on behalf of the requisite number of Providers that are offering the same plan on a word-for-word basis as provided in section 11.02, unless the Mass Submitter has already satisfied this requirement in connection with a previous application under this revenue procedure involving another 403(b) Pre-approved Plan. In this case, (1) the basic plan document must include provisions reflecting the 403(b) Requirements, including 1.403(b)-6, and 1.72(p)-1, and (2) the basic plan document and adoption agreement, as completed by the Adopting Employer, must provide that, to the extent permitted by the terms governing the applicable Investment Arrangement, participant loans are available. Pursuant to this revenue procedure, the On-Cycle Submission Period for Providers to submit applications for an Opinion Letter for Cycle 2 begins on May 2, 2022, and ends on May 1, 2023. 3. .05 Section 403(b) Pre-approved Plans treated as individually designed An Adopting Employers 403(b) Pre-approved Plan will be treated as individually designed (and the Adopting Employer may not rely on the plans Opinion Letter and will lose eligibility for the Cycle system) under the following circumstances: (1) An Adopting Employer makes any amendment to a Standardized Plan other than an amendment listed in section 9.03 or as otherwise described in this section 9.05. (ii) Administrative provisions A Mass Submitter may offer a variety of administrative provisions in its plan for Providers to include or delete from their version of the plan. .24 Rev. See section 11 for rules relating to Mass Submitter plans. 2020-21 provides that for the period beginning May 4, 2020, and ending on December 31, 2020, hearings held by teleconference that are accessible to the residents of the approving governmental unit by calling a toll-free telephone number will be treated as held in a location that, based on the facts and circumstances, is convenient for residents of the approving governmental unit for purposes of 1.147(f)-1(d)(2). 136, as modified by Rev. Proc. For this purpose, a plan is a written defined contribution plan that, in both form and operation, satisfies the requirements of the final regulations under 403(b).4. Proc. .05 The On-Cycle Submission Period for Cycle 2 will begin on May 2, 2022, and end on May 1, 2023. Minor modifier adopter of Mass Submitter plan. Proc. 2021-4 (updated annually)). Notice 2021-63 therefore provides a special rule: Solely for purposes of Sec. (1) An Adopting Employer of a Standardized Plan may rely on the Standardized Plans Opinion Letter that the form of the Adopting Employers plan satisfies the 403(b) Requirements, including, if applicable, the requirements of 401(a)(4) and 410(b), if: (a) the Standardized Plan has a currently valid Opinion Letter; (b) the Adopting Employer has not amended the Standardized Plan other than to choose options provided under the Standardized Plan or to make amendments that are described in section 9.03 relating to employer amendments that will not affect reliance (see also section 9.05 for when a 403(b) Pre-approved Plan is treated as individually designed); and. Section 3 of Rev. REVOCATION OF OPINION LETTER BY THE IRS, SECTION 21. The period described in this section 4.02 is the period beginning on May 4, 2020, and ending on March 31, 2022. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. .12 Provider telephone numbers Each 403(b) Pre-approved Plan must include the Providers name, address, and telephone number (or a space for the address and telephone number of the Providers authorized representative) for inquiries by Adopting Employers regarding the adoption of the plan, the meaning of plan provisions, or the effect of the Opinion Letter. See section 9 for the effect of certain plan amendments on a plans eligibility for the Cycle system. 2019-39 to change the expiration date of the Initial Remedial Amendment Period, and all dates that are based on the expiration of the Initial Remedial Amendment Period, from March 31, 2020 to June 30, 2020. Proc. 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. 2019-48 (or successor). Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. General guidance issued in 2019 regarding the use of per diems after the Tax Cuts and Jobs Act remains in effect (see our Checkpointarticle). The Provider must then notify each Adopting Employer of the revocation as soon as possible. Section 1.403(b)-3(b)(3)(iii). Since the terms of Investment Arrangements under a 403(b) Pre-approved Plan must be incorporated by reference into the plan and those arrangements may not have any provisions that are inconsistent with 403(b), plan terms that are required in a single plan document or the basic plan document and adoption agreement, as applicable, under this section 5 should not create a conflict with the terms of the Investment Arrangements under a properly drafted 403(b) Pre-approved Plan. .03 The heading of section 15.06(1) of Rev. It is not used where a position in a prior ruling is being changed. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. An Investment Arrangement may be an annuity contract under 1.403(b)-2(b)(2), a custodial account under 403(b)(7), or a Retirement Income Account. Taxpayers should refer to section 6.05 of Revenue Procedure 2019-48 to determine the meal portion of a per diem rate or allowance paid or incurred. 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. .07 Section 21.03 of Rev. 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. The application form (or Appendix A) must be typed. .02 Submission of Opinion Letter applications Rev. Proc. An Opinion Letter issued to a Provider is not transferable. Proc. For these purposes, a custodial account and a Retirement Income Account are treated as a 403(b) annuity contract. See section 21 of this revenue procedure for a description of when the Remedial Amendment Period for a Form Defect in a 403(b) Pre-approved Plan expires. .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. Rev. See section 23.02. Proc. Instead, the Mass Submitter should submit a restated plan, including the amendments, during the next Cycle. 2020-21, 2020-22 I.R.B. 948. 945, as modified by Notice 2020-35, 2020-25 I.R.B. 2016-37, which is applicable to a governmental plan within the meaning of 414(d), and which is determined by reference to the interim amendment deadline for a plan that is not a governmental plan, is modified. For purposes of this definition, affiliation is determined under 414(b) and (c). Proc. Proc. 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. If 4.a. 2020-21 is extended. 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. The following locality has been added to the list of high-cost localities: Hilton Head, South Carolina. The Treasury Department and the IRS will publish for public availability any comment submitted electronically, and to the extent practicable on paper, to its public docket. IRS provides guidance on per diem rates and the temporary 100% deduction for food or beverages from restaurants. (3) Except as provided in the applicable Cumulative List, the IRS generally will not consider in its review of any Opinion Letter application any: (a) guidance issued after approximately 90 days (the exact date being stated in the Cumulative List) prior to the date the applicable Cumulative List is issued; (b) statutes enacted after approximately 90 days (the exact date being stated in the Cumulative List) prior to the date the applicable Cumulative List is issued; (c) statutes that are first effective in the year in which the On-Cycle Submission Period begins for which there is no guidance identified on the applicable Cumulative List (regardless of when they are enacted); or. This revenue procedure extends the time period until March 31, 2022. 2019-39 provides a limited extension of the Initial Remedial Amendment Period with respect to certain 403(b) Pre-approved Plan Form Defects first occurring during Cycle 1, so that the Initial Remedial Amendment Period will end no earlier than the end of Cycle 2. 2020-49. Proc. As provided in section 7, the plan of such an employer will become an individually designed plan unless the employer adopts a Newly Approved 403(b) Pre-approved Plan during the Employer Adoption Window for the Cycle for which the application was submitted. 2021-3 sets forth a list of those areas in which rulings or determination letters will not be issued. Proc. In addition, a single adoption agreement may be drafted to cover multiple types of Eligible Employers. 2016-37, 2016-29 I.R.B. 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. Part IV.Items of General Interest. The IRS will not consider a plan with such an omission or cross-reference until after the plan has been revised and resubmitted, and the modified plan will be treated as a new application for approval as of the date it is resubmitted, and therefore will be treated as off-cycle, as set forth in section 10.02, if resubmitted after the On-Cycle Submission Period. 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). For travel to any other areas within the United States, the FY 2021 general per diem rates are used. 698; Rev. 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. 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 202127 through 202152 is in Internal Revenue Bulletin 202152, dated December 27, 2021. .01 Final regulations under 403(b) were published on July 26, 2007 (T.D. Proc. 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