2015-22, and clarified by Rev. The amount of the $296 high rate and $202 low rate that is treated as paid for meals for purposes of 274(n) is $74 for travel to any high-cost locality and $64 for travel to any other locality within CONUS. 2017-41, and to make additional administrative changes. (1) For each Cycle, the IRS intends to publish a Cumulative List for 403(b) Pre-approved Plans shortly before the start of the Cycles On-Cycle Submission Period. The application will be subject to a reduced user fee as provided in Appendix A of Rev. 2534 (2019), known as the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), provides that a Retirement Income Account may provide benefits for an employee described in 414(e)(3)(B) (which includes employees of a tax-exempt organization that is controlled by or associated with a church or convention or association of churches, such as employees of a QCCO or a Non-QCCO). Proc. INCLUSION OF 414(e)(3)(B) EMPLOYEES, APPENDIX A Application for Approval of 403(b) Pre-approved Plan. .20 Opinion Letter An Opinion Letter is a written statement issued by the IRS to a Provider or Mass Submitter that the form of a 403(b) Pre-approved Plan satisfies the 403(b) Requirements. The following types of amendments will not cause an Adopting Employer to lose reliance on an Opinion Letter: (1) amendments to the plan to add or change a provision (including choosing among options in the plan) or to specify or change the effective date of a provision, provided the Adopting Employer is permitted to make the modification or amendment under the terms of the 403(b) Pre-approved Plan, as well as under 403(b), and, in the case of a Standardized Plan, the provision is identical to a provision in the 403(b) Pre-approved Plan, except for the effective date; (2) sample or model amendments published by the IRS that specifically provide that their adoption will not cause a plan to fail to be identical to the 403(b) Pre-approved Plan; (3) amendments that adjust the limitations under 415, 402(g), 401(a)(17), and 414(q)(1)(B) to reflect annual cost-of-living increases; (4) plan language completed by the Adopting Employer if the overriding language is necessary to satisfy 415 because of the required aggregation of multiple plans under that section, in accordance with section 5.09; (5) interim amendments or discretionary amendments, as described in sections 11 and 12 of Rev. Background The period described in section 4.02 of Rev. 2021-30, 2021-31 I.R.B. This notification is for the convenience of the applicable Mass Submitter or Provider concerning the status of its application and does not constitute an official Opinion Letter on which the Mass Submitter or Provider may rely. .07 Section 21.03 of Rev. This revenue procedure announces that the Service will not issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d) of the Code. Failure to make the interim amendments may result in the form of the plan failing to satisfy the 403(b) Requirements. See section 10 for the instructions for Opinion Letter applications. (3) Additionally, the Adopting Employer of a Standardized Plan may not rely on the Opinion Letter for the Standardized Plan with respect to: (a) whether the timing of any amendment to the Adopting Employers plan (or series of amendments) satisfies the nondiscrimination requirements of 1.401(a)(4)-5(a), except with respect to plan amendments granting past service that meet the safe harbor described in 1.401(a)(4)-5(a)(3) and are not part of a pattern of amendments that significantly discriminates in favor of highly compensated employees, or (b) whether the Adopting Employers plan satisfies the effective availability requirement of 1.401(a)(4)-4(c) with respect to any benefit, right, or feature. .04 An Adopting Employer of a Nonstandardized Plan that makes amendments to the plan that are not extensive will lose reliance on the Nonstandardized Plans Opinion Letter, but may obtain reliance that the form of the plan, as amended, satisfies the 403(b) Requirements by requesting a determination letter using Form 5307 (as updated), under procedures similar to the procedures applicable to 401(a) pre-approved plans. (2) Expiration of Remedial Amendment Period Unless otherwise specified in guidance published in the Internal Revenue Bulletin, the expiration date for a Remedial Amendment Period for a Form Defect first occurring after the Initial Remedial Amendment Period is described in this section 2.13(2). 8 For an individually designed plan, the Remedial Amendment Period for a Form Defect related to a change in 403(b) Requirements generally ends on the last day of the second calendar year that begins after the issuance of the Required Amendments List in which the change in 403(b) Requirements appears. Proc. 2022 per diem rates Per diem rates effective July 2022 [PDF 635 KB] PROVISIONS REQUIRED IN 403(b) PRE-APPROVED PLANS, SECTION 7. Employer X decides to no longer be an individually designed plan and adopts a Newly Approved 403(b) Pre-approved Plan during the Cycle 3 Employer Adoption Window. 575), and Rev. .07 No Form 5307 Determination Letter for Pre-approved Plans Treated as Individually Designed If a plan is treated as individually designed as provided in section 9.05 of this revenue procedure, the employer may not file for a determination letter using a Form 5307 (as updated). Cycle 2 began on July 1, 2020. In addition, if an employer adds language to a 403(b) Pre-approved Plan to satisfy the requirements of 415 due to the required aggregation of plans, the employer may obtain reliance with regard to 415 by applying for a determination letter on Form 5307 (as updated). (See also 1.415(c)-1(d) and 1.415(f)-1(f) for special rules applicable to 403(b) plans.) The collections of information in this revenue procedure are in sections 5.11, 9.01, 9.02, 10.03, 11, and 19. The IRSs review will not consider, and an Opinion Letter will not express an opinion with respect to, the terms of any Investment Arrangements under the plan of any Adopting Employer or any other documents that may be incorporated by reference into an Adopting Employers plan. 1121, during which certain telephonic hearings are permitted. The plan also must state that the nondiscrimination requirements will be applied to any employee other than an employee of a QCCO or Church. Proc. 2017-41 provides for a single Opinion Letter program that combines and replaces the Master & Prototype (M&P) and Volume Submitter (VS) programs, under which M&P sponsors and VS practitioners, respectively, submitted their plans to the IRS for review. Integrated software .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. However, procedural provisions that are required for the form of a plan to meet the 403(b) Requirements are not administrative provisions under this section. (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. 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 202027 through 202052 is in Internal Revenue Bulletin 202052, dated December 27, 2020. 2013-22 provides that an employer that adopts a volume submitter plan and amends the terms of the approved specimen plan loses reliance on the advisory letter only to the extent of the amendment (as long as, after the amendment, the plan remains substantially similar to the terms of the approved specimen plan), but that the employer has no option to obtain a determination letter on the amended portions of the plan. Significantly, the entire credit was refundable, meaning that it was available to those with no earned income. Proc. This information is required to enable the Commissioner, Tax Exempt and Government Entities Division of the Internal Revenue Service, to make determinations in connection with compliance with the 403(b) Requirements. 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). 467, Rev. Providers and Mass Submitters signatures under penalties of perjury (required if 4.c. 2021-3. This revenue procedure applies to all ruling requests pending in or received by the Service on or after September 3, 2021. .13 Section 5 of Rev. .06 Section 15.06(2) of Rev. .08 All 403(b) Pre-approved Plans are required to provide a definition of Employee. (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. c. The following locality has been removed from the list of high-cost localities: Gulf Breeze, Florida. However, the terms of the single plan document or the basic plan document and adoption agreement, as applicable, must satisfy the requirements of applicable law and sections 5.03 through 5.17 (and sections 5.18 and 5.19, if applicable) independent of any Investment Arrangements under the plan or any other documents incorporated by reference. .25 Remedial Amendment Period The Remedial Amendment Period is the period during which a 403(b) plan may be amended to comply retroactively with the 403(b) Requirements. Previously, the IRS issued Notice 2021-25PDF providing guidance under the Taxpayer Certainty and Disaster Relief Act of 2020, which added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. As provided in section 11.01 of Rev. 2018-21, 2018-14 I.R.B. The principal author of this revenue procedure is Angelique Carrington of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). .23 Related Employers For a plan that is not a Governmental Plan, Related Employers means all employers that are aggregated with the Adopting Employer under 414(b) and (c) (each as modified by 415(h)), (m), and (o) and the regulations thereunder. A Flexible Plan, as defined in section 11.03(1), that is offered by a Provider is considered a word-for-word identical plan. Proc. The standard meal allowance, which is the federal meals and incidental expense (M&IE) per diem rate. Changes in high-cost localities. The principal author of this notice is James Liechty of the Office of Associate Chief Counsel (Income Tax & Accounting). However, an Adopting Employer of a Nonstandardized 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). (3) Notwithstanding the preceding provisions of this section 4.21, any person that has an established place of business in the United States where it is accessible during every business day may be a Provider that offers a plan that is word-for-word identical to a plan of a Mass Submitter (as an identical adopter) or a plan that includes Minor Modifications to a plan of a Mass Submitter (as a minor modifier adopter) regardless of the number of Eligible Employers that are expected to adopt the plan. Every Standardized Plan must include plan language reflecting these rules. 2021-3, 2021-1 I.R.B. Specifically, to expedite the review of their plans, Providers are encouraged to use LRM language if appropriate and to identify the location of the LRM language in their 403(b) Pre-approved Plan. Comments should be submitted in writing and should include a reference to Rev. Examples of a change in entity include, but are not limited to, the acquisition of a Provider by another entity, the sale or transfer of the stock or assets of the Provider to another entity, and any other circumstance that results in a change in a Providers employer identification number. ERISAEmployee Retirement Income Security Act. Proc. Proc. Proc. The amendment must be made in good faith with the intent of complying with the 403(b) Requirements. A Single Document Plan may accommodate usage by more than one type of Eligible Employer; however, a Retirement Income Account plan must always be filed as a separate Single Document Plan. Except in the case of certain Nonstandardized Plans described in this section 5.06, contributions other than elective deferrals (and earnings thereon) under a 403(b) Pre-approved Plan must vest at least as rapidly as would be required to satisfy the minimum vesting requirements of 411(a)(2)(B) applicable to a qualified plan under 401(a), even if the plan is not subject to the parallel minimum vesting requirements under ERISA 203. The IRS will regard the information and certification described in paragraphs (3) and (4) of this section 10.05 as a representation of a material fact for purposes of issuing an Opinion Letter. is checked, complete the following information for the Mass Submitters plan on which this application is based, to the extent the information is available when this application is filed: e. Basic plan document number or Single Document Plan number (if b, c, and d not available): f. Adoption agreement number, if applicable (if b, c, and d not available). A Mass Submitter is treated as a Mass Submitter with respect to all of its plans, provided the 15 unaffiliated Provider requirement is met with respect to at least one plan. 2019-39, that are related to a change in the 403(b) Requirements for the form of a plan; (6) amendments that reflect a change of a Providers name, in which case the Provider must notify the IRS, in writing, of the change in name and certify that it still meets the conditions to be a Provider described in section 4.21 (see also section 15 regarding changes in employer identification numbers); (7) amendments to the administrative provisions in the plan (such as provisions relating to investments, plan claims procedures, or the Adopting Employers contact information), provided the amended provisions are not in conflict with any other provision of the plan, still meet the requirements of this revenue procedure, and do not cause the plan to fail to satisfy the 403(b) Requirements (see section 11.03(1)(b)(ii) for additional examples of administrative provisions); and. Provided an interim amendment (as described in section 9.02 of this revenue procedure) is made timely, except as otherwise provided by statute, regulations, or other guidance published in the Internal Revenue Bulletin, the Remedial Amendment Period for a Form Defect first occurring after the Initial Remedial Amendment Period, expires at the later of (1) the end of the Cycle that includes the date on which the Remedial Amendment Period would have ended if the plan were an individually designed plan, or (2) the end of the first Cycle in which an application for an Opinion Letter that considers the Form Defect may be submitted. See section 11 for rules relating to Mass Submitter plans. The principal author of this revenue procedure is Patrick Gutierrez of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). Basic plan document or Single Document Plan? 3 Unless otherwise specified, references to revenue procedure section numbers refer to sections of this revenue procedure. discount pricing. In the case of multiple employers that are not part of the same controlled group (as determined under 414(b), (c), (m), or (o)) participating in the plan, each Adopting Employer must identify whether it is a Church, QCCO, or any other employer (such as a non-QCCO or minister). Proc. In addition, the adoption agreement must include a cautionary statement to the effect that the failure to properly complete the adoption agreement may result in failure of the form of the plan to meet the 403(b) Requirements. See section 8.03(4) for the effect on reliance in the event of a conflict. Proc. If, after the 30-day period, neither action has been taken, the IRS may treat the application as having been withdrawn. If the amount of an allowance is deemed substantiated because it does not exceed the applicable limit, any unspent amounts do not have to be taxed or returned. 828, for administrative procedures for seeking an opinion letter for individual retirement arrangements under 408.). 2. .07 Separate applications required for Single Document Plans A separate plan and application is required for a Single Document Plan. Federal per diem rates are set by the General Services Administration (GSA) and are used by all government employees, as well as many private-sector employees who travel for their companies. Proc. .03 Plans for which an Opinion Letter will not be issued An Opinion Letter will not be issued for: (1) a plan under which the 415 limitations are incorporated by reference; (2) a plan under which the actual contribution percentage (ACP) test under 401(m)(2) is incorporated by reference; (3) a Nonstandardized Plan that provides for hardship distributions under circumstances not described in the safe harbor standards in the regulations under 401(k), unless the availability of these distributions is subject to nondiscriminatory and objective criteria included in the plan; (4) a plan that includes blanks or fill-in provisions for the Adopting Employer to complete, unless the provisions have parameters that preclude the Adopting Employer from completing the provisions in a manner that could violate the 403(b) Requirements; (5) a TEFRA church defined benefit plan (see 1.403(b)-10(f)(2)); or. .12 Inadequate submissions The IRS will return, without further action or refunding the user fee, plans that are not in substantial compliance with the 403(b) Requirements, or plans that are so deficient that they cannot be reviewed in a reasonable period of time. 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