(4) An Adopting Employer may not rely on an Opinion Letter if any Investment Arrangement under the plan or any other document that may be incorporated by reference provides that the terms of the Investment Arrangement or other document shall govern in the event of any conflict between the terms of the Investment Arrangement or other document and the terms of the plan. 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. The GSA website lists these rates by location. Although sample language is designed for use in plans that use an adoption agreement format, in order to expedite processing, Providers are encouraged to refer to the sample language as a guide in drafting Single Document Plans. 9 In order to satisfy the 403(b) Requirements, a plan must comply with all relevant 403(b) Requirements, not solely those on the applicable Cumulative List, which generally reflects only the most recent changes to the 403(b) Requirements. 2016-37 defines an interim amendment as an amendment with respect to a disqualifying provision described in section 5.03 of Rev. .23 Rev. (b) Newly Approved 403(b) Pre-approved Plan A Newly Approved 403(b) Pre-approved Plan, which is a plan for which an Opinion Letter has been issued for the Cycle. Proc. 2019-39, the limited extension of the Initial Remedial Amendment Period, as defined under Rev. Comprehensive For further information regarding this revenue procedure, contact Employee Plans at (513) 975-6319 (not a toll-free number). 467, Rev. An official website of the U.S. General Services Administration. 5 For purposes of this revenue procedure, references to Rev. The period described in this section 4.02 is the period beginning on May 4, 2020, and ending on March 31, 2022. consulting, Products & environment open to Thomson Reuters customers only. 3. Within 30 days following the date the notification is provided, either the Mass Submitter may revise the plan so that the modifications are minor and resubmit the revised plan, or the Provider may submit the application form (or Appendix A) and an additional user fee in an amount equal to the difference between a non-Mass Submitter plan application user fee and a minor modifier adopter application user fee. M&IE Rate ($) 1 Breakfast Lunch Non-qualified Church-Controlled Organization. The next Cycle begins on the following day. .06 Use of same basic plan document by multiple plans; separate applications required for different categories of Adoption Agreement Plans. 1. Proc. .04 Obtaining a determination letter An Adopting Employer of a Nonstandardized Plan that makes amendments to the plan that are not extensive 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, and may do so regardless of whether a prior determination letter has been issued with respect to the plan. .01 This revenue procedure significantly modifies the procedures set forth in Rev. accounting firms, For (Also Part I, 4941.). This revenue procedure also sets forth the rules for determining when remedial amendment periods expire for 403(b) pre-approved plans. .09 Adopting Employer modification to satisfy 415 Each 403(b) Pre-approved Plan must provide that plan provisions may be amended by the Adopting Employer to the extent necessary to satisfy 415 because of the required aggregation of multiple plans under that section. By contrast, a change by a Provider of a plan meant to be adopted by a public school, as defined in section 5.17(1)(a), to remove any nondiscrimination provisions that do not apply to a public school from a Mass Submitters 403(b) Pre-approved Plan that was designed for a tax-exempt organization would not be considered a Minor Modification. (2) An Adopting Employer amends a 403(b) Pre-approved Plan (including its adoption agreement, if applicable) within one year of the date the Adopting Employer initially adopted the 403(b) Pre-approved Plan to incorporate a type of plan not permitted in the Opinion Letter program, as described in section 6.03. However, section 23.02 of this revenue procedure extends the deadline for the initial amendment. .04 An Opinion Letter does not consider Title I issues An Opinion Letter does not express an opinion, and may not be relied upon, with respect to whether any plan is subject to the requirements of Title I of ERISA or whether a plan satisfies any of those requirements. 2017-18 and Rev. WASHINGTON The Internal Revenue Service today issued Notice 2021-63PDF to make clear how the temporary 100% business deduction for food or beverages from restaurants applies to taxpayers properly applying the rules of Revenue Procedure 2019-48PDF for using per diem rates. 2010-48, 2010-50 I.R.B. Proc. Proc. 2013-22, as modified by Rev. The IRS currently allows owner-operators to deduct 80% of (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. Standardized and Nonstandardized Plans may not be combined in one Single Document Plan. The following is an exclusive list of the permittable optional provisions that a Flexible Plan may include: (i) Investment provisions A Mass Submitter may offer a variety of investment provisions in its plan for Providers to include or delete from their version of the plan. 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. 2013-22, a defect in the form of a plan is a provision, or the absence of a required provision, that causes the plan to fail to satisfy the 403(b) Requirements. 2015-22, and clarified by Rev. The location is presumed convenient for residents of the approving governmental unit if the public hearing is located in the approving governmental units capital or seat of government. Proc. For example, an Adopting Employers Adoption Agreement Plan may offer both Investment Arrangements that permit loans and Investment Arrangements that do not permit loans. Proc. As a result of this modification, the interim amendment deadline set forth in section 15.06(1)(a) of Rev. 2021-4, 2021-1 I.R.B. The special meal and incidental expenses rates for taxpayers in the transportation industry are $66 for any travel locality within the continental United States and $71 for any travel locale outside the continental U.S. If the Mass Submitter submits a plan with Minor Modifications, it must comply with the requirements of section 11.03(2). (2) After satisfying the requirement as to the number of adopting Providers, the Mass Submitter may submit additional applications on behalf of other Providers that wish to adopt a word-for-word identical plan to the Mass Submitter plan (as an identical adopter) or a plan that includes Minor Modifications to the Mass Submitter plan (as a minor modifier adopter). This section 16 does not impose a requirement on a Provider to monitor compliance of an Adopting Employers plan with the 403(b) Requirements, but it provides that the Provider has a duty to inform the Adopting Employer if the Provider has knowledge that the Adopting Employers plan may no longer satisfy those requirements. 92, and Rev. The Service has determined that it is in the interest of sound tax administration not to issue rulings on such transactions while it reviews their proper tax treatment. However, if, instead, Employer X decides to continue to be an individually designed plan, then, by the end of Cycle 3, Employer Xs plan must be amended to reflect all changes in 403(b) Requirements for which the Remedial Amendment Period applicable to individually designed plans will have expired;8 moreover, after Cycle 3, Employer Xs plan is subject to the Remedial Amendment Period rules for individually designed plans. Revocation of an Opinion Letter may be applied retroactively. .05 Plan must satisfy 403(b) Requirements independent of Investment Arrangements The IRSs review of a 403(b) Pre-approved Plan will consider only the terms of the single plan document or the basic plan document and adoption agreement, as applicable. For travel within the continental United States, the optional high-low method designates one per diem rate for all high-cost locations and another for all other locations. 786, to change the portion of the year Sedona, Arizona is a high-cost locality under section 5 of Notice 2020-71. If the plan provides for contributions other than elective deferrals and the Adopting Employers controlled group includes any employer that is not an Eligible Employer, the Adopting Employer may rely on the Opinion Letter, except with respect to whether contributions other than elective deferrals under the plan satisfy the requirements of 401(a)(4) and 410(b). You can! When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality. Proc. 2021-4 (updated annually)). management, More for accounting Proc. 754, and clarified by Rev. SC Comptroller General 1200 Senate Street 305 Wade Hampton Office Building Columbia, SC 29201. 96-49, 1996-2 C.B. See section 4.05 of Rev. These modifications generally make the 403(b) Pre-approved Plan program more similar to the 401(a) pre-approved plan program. To assist Eligible Employers in achieving operational compliance, updates to the Operational Compliance List currently maintained on the IRS website include changes in 403(b) Requirements that are effective during a calendar year. In addition, an Adopting Employer of any 403(b) Pre-approved Plan (whether a Standardized Plan or 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), under procedures similar to the procedures applicable to 401(a) pre-approved plans. corporations. The following categories of 403(b) Pre-approved Plans apply with respect to a Cycle. 2013-22, employees of a Qualified Church-Controlled Organization (QCCO) or a non-QCCO may not participate in a 403(b) Pre-approved Plan that is intended to be a Retirement Income Account. 2021-37), Room 5203, P.O. .07 Applications for a minor modifier adopter of a Mass Submitters 403(b) Pre-approved Plan with respect to a Cycle will no longer be accepted after that Cycles Employer Adoption Window begins. Find current rates in the continental United States ("CONUS Rates") by searching below with city or 4.d. (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. The application must be accompanied by: (1) the applicable required user fee that will be provided for in the successors to Rev. .02 Maintenance and availability of records of adopting employers A Provider must maintain, or have maintained on its behalf, for each of its plans, a record of the names, business addresses, and taxpayer identification numbers of all Adopting Employers. See section 4.27. 872, as modified by Rev. 2021-3, 2021-1 I.R.B. 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. L. 116-94, 133 Stat. Proc. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. The estimated number of respondents and/or recordkeepers is 8,188. Proc. The Mass Submitter must submit on behalf of each Provider a completed application form (or Appendix A) that includes a declaration by the Mass Submitter under penalties of perjury that the Provider will offer a plan that is word-for-word identical to a plan of the Mass Submitter, or a plan that is a Minor Modification of the Mass Submitters plan. The plan must provide that, for purposes of allocations, the definition of total compensation is all compensation within the meaning of 415(c)(3), excluding all other compensation, or compensation that otherwise satisfies 414(s) and 1.414(s)-1(c). A Standardized Plan generally may not deny an allocation to an employee eligible to participate merely because the employee is not an active employee on the last day of the plan year or has failed to complete a specified number of hours of service during the year. .28 403(b) Requirements The 403(b) Requirements are the requirements of 403(b), including requirements provided in the Code, regulations, and other guidance published in the Internal Revenue Bulletin. 2019-48, 2019-51 I.R.B. Proc. Please note the meal and incidental rates are inclusive of GST. The Provider must have a procedure to notify an Adopting Employer of amendments and restatements of the plan and to inform the Adopting Employer, when applicable, of the need to timely adopt or amend the plan, including in the case of both initial adoption and restatement of the plan. 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). 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. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. 2016-37 sets forth the deadline for the timely adoption of an interim amendment to a qualified pre-approved plan. Specific eligibility requirements and submission procedures applicable to filing a Form 5307 determination letter application will be provided in a future update of Rev. Each 403(b) Pre-approved Plan that is a Governmental Plan must credit all service with any employer aggregated with the Adopting Employer in a manner consistent with Notice 89-23, as service with the Adopting Employer maintaining the plan. 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. 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. Dollars DSSR 925 All Locations Publication Date: 01/01/2023 Under this modification, the interim amendment deadline is no longer determined with reference to 401(b), and, accordingly, an employers tax-filing deadline is no longer relevant in determining the date by which an interim amendment must be adopted. 98-59, 1998-2 C.B. The Treasury Department and the IRS invite comments on this revenue procedure. See Rev. 2021-4, 2021-1 I.R.B. For example, if a change in 403(b) Requirements occurs in the 1st year of Cycle 3, and is placed on the Required Amendments List in the 2nd year of Cycle 3, then the Remedial Amendment Period for a Form Defect related to that change would expire at the end of the 4th year of Cycle 3. The Bulletin is divided into four parts as follows: Part I.1986 Code. .01 Section 15.04(1) of Rev. The Provider also must notify each Adopting Employer of the withdrawal of the application and the consequences of the withdrawal to the Adopting Employer. Proc. If a Mass Submitter fails to identify a significant modification, the failure will be considered a material misrepresentation, and an Adopting Employer may not rely on the Opinion Letter that may be issued with respect to the plan for the modification or any other provision of the plan that may be affected by the modification. Proc. .03 In light of the COVID-19 pandemic, state and local governmental units sought alternatives to in-person hearings held to meet the public approval requirement. To pay a fee, a Provider must continue to submit a paper check and a paper Form 8717-A, User Fee for Employee Plan Opinion or Advisory Letter Request. (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. .01 Notification and effect A Provider may withdraw its application for an Opinion Letter at any time prior to the issuance of the letter by notifying the IRS in writing of the withdrawal at the address provided in section 20. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. 3. For this purpose, for a 403(b) Pre-approved Plan that is not a Governmental Plan, the Adopting Employers controlled group is determined under 414(b), (c), (m), or (o) and the regulations thereunder; for a 403(b) Pre-approved Plan that is a Governmental Plan, the Adopting Employers controlled group is determined in a manner consistent with Notice 89-23. Proc. Accordingly, under Rev. 2020-40, 2020-38 I.R.B. .07 Separate applications required for Single Document Plans A separate plan and application is required for a Single Document Plan. (1) A 403(b) Pre-approved Plan is a 403(b) plan (including a plan covering self-employed individuals) that is made available by a Provider for adoption by Eligible Employers. The notification to each Adopting Employer must explain how the revocation affects any reliance an Adopting Employer has on the applicable Opinion Letter and on any determination letter issued. Understanding Clean Vehicle Credits for Electric Vehicles, Monkeypox On the Rise: Review of Paid Sick PHE Provisions, Legal Expert Discusses Large Social Security Wage Base Increase and Looking Ahead to 2023, For 274 (n) (2) (D), a taxpayer that properly applies the rules of Rev. Proc. WASHINGTON The The plan also must state that the nondiscrimination requirements will be applied to any employee other than an employee of a QCCO or Church. Annual high-low rates. 2013-22 provides that the IRS expects future guidance to require the restatement of every 403(b) Pre-approved Plan by the plans Provider every six years. providing details regarding the system of cyclical Remedial Amendment Periods that follows the Initial Remedial Amendment Period. This annual notice provides the 2021-2022 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, specifically (1) the special transportation industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method. .02 Section 15.02 of Rev. For more information, see EBIAs Fringe Benefits manual at SectionXXI.G(Travel Expense Reimbursements: Substantiation). 2020-21 is extended. The IRS will also consider in its review of any Opinion Letter application all 403(b) Requirements that are not described in section 13.02(3), and not solely those on the applicable Cumulative List.9 For example, if a Provider submits an application for a Cycle 2 Opinion Letter for a new plan that did not receive a Cycle 1 Opinion Letter, the IRS will review the plan taking into account the Cumulative List for Cycle 2, as well as the 403(b) Requirements that were reviewed during Cycle 1. 945, as modified by Notice 2020-35, 2020-25 I.R.B. Any Provider that does not wish to make the amendments made by a Mass Submitter may switch to another Mass Submitter or may submit an application for an Opinion Letter on its own behalf during the next applicable On-Cycle Submission Period for 403(b) Pre-approved Plans. All published rulings apply retroactively unless otherwise indicated. 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. In addition, the IRS reserves the right to require changes after the notification is sent. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. Proc. (4) The terms of the plan must set forth the nondiscrimination requirements of 403(b)(12). Thus, a separate 403(b) Pre-approved Plan is required for a plan that is intended to constitute a Retirement Income Account. Only one copy of the basic plan document should be provided. 2019-48 (or successor) for transition rules for the last 3 months of calendar year 2021. .01 Rev. Accordingly, section 4.02 of Rev.
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