(Employees must still substantiate the time, place, and business purpose of their travel expenses.) Proc. Providers that adopt the Flexible Plan may include or delete any optional provision that is designated as an optional provision in the Mass Submitters plan, provided the inclusion or deletion of specific optional provisions conforms to the Mass Submitters written representation to the IRS concerning the choices available to Providers and the coordination of optional provisions. These modifications generally make the 403(b) Pre-approved Plan program more similar to the 401(a) pre-approved plan program. The following abbreviations in current use and formerly used will appear in material published in the Bulletin. This revenue procedure also sets forth the rules for determining when remedial amendment periods expire for 403(b) pre-approved plans. Proc. Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). .02 Extension of deadline for initial amendment To be considered timely, the date by which the initial amendment described in section 4.11 must be adopted is extended to the later of (1) June 30, 2020, or (2) 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. 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. Meals and incidentals allowances are $20 for breakfast, $15 for lunch, $35 for dinner, and $10 for incidentals. Rev. The application will be subject to a reduced user fee as provided in Appendix A of Rev. (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. WASHINGTON The U.S. General Services Administration (GSA) today released the fiscal year (FY) 2021 travel per diem rates, which will take effect on October 1, 2020. For information as to where to access per diem rates for various types of Government travel, please consult the table in 301-11.6. 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. Depending upon the length of the IRS review process, Eligible Employers will have approximately a two-year period to adopt the updated plan (Employer Adoption Window). 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. ADDITIONAL REQUIREMENTS FOR MASS SUBMITTERS, SECTION 13. REVIEW OF OPINION LETTER APPLICATIONS; ISSUANCE OF OPINION LETTERS; EMPLOYER ADOPTION WINDOW, SECTION 15. Generally, a space should be provided in the plan with instructions for the Adopting Employer to add language as necessary to satisfy 415. View sitemap, FederalPay is a free public resource site and is not affiliated with the United States government or any Government agency. 2019-39. Any law firm, accounting firm, consulting firm, or similar organization, will be considered to be affiliated with its partners, members, associates, or similar affiliated persons. .07 Appendix of administrative responsibilities Every 403(b) Pre-approved Plan must provide that an appendix to the plan will identify the parties responsible for the various administrative functions under the plan that are necessary to comply with the 403(b) Requirements and other tax requirements, including the requirements that apply on the basis of the aggregated Investment Arrangements issued to a participant under the plan, and will list all the vendors of Investment Arrangements approved for use under the plan. Foreign Per Diem Rates by Location DSSR 925. 2019-39 is modified. 3. If a Mass Submitter repeatedly fails to identify the modifications, the IRS may deny permission to that Mass Submitter to submit additional modifications. Section 1.415(f)-1(f)(2) includes a special rule providing that, if a participant on whose behalf a 403(b) annuity contract is purchased is in control of any employer for a limitation year, the 403(b) annuity contract is aggregated with all other defined contribution plans maintained by that employer. A plan will not fail to satisfy the requirements of this section 5.18(2) with respect to contributions other than elective deferrals merely because the plan provides, either as the result of an elective provision or by default in the absence of an election to the contrary, that individuals who become employees, within the meaning of section 5.13, as a result of a transaction described in 410(b)(6)(C) are excluded from eligibility to participate in the plan during the period beginning on the date of the transaction and ending on a date that is not later than the earlier of the last day of the first plan year beginning after the date of the transaction or the date of a significant change in the plan or in the coverage of the plan. 2019-39) in which the change in 403(b) Requirements appears, 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 on or after the date of issuance of the Required Amendments List in which the change in 403(b) Requirements appears. 2019-39 provides that an Eligible Employer adopting a 403(b) Pre-approved Plan generally must adopt an interim amendment with respect to a change in 403(b) Requirements. 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. Rev. Proc. .13 Definition of employee Each 403(b) Pre-approved Plan that is not a Governmental Plan must define an employee as any employee of the Adopting Employer maintaining the plan or any other Eligible Employer aggregated with that Adopting Employer under 414(b), (c), (m), or (o) and the regulations thereunder. Proc. Proc. statement, 2019 (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. is selected, check all of the following types of employers that may utilize the Retirement Income Account plan: _____b. .22 Qualified Church-Controlled Organization or QCCO A Qualified Church-Controlled Organization or QCCO is a church-controlled tax-exempt organization described in 501(c)(3) that is a qualified church-controlled organization within the meaning of 3121(w)(3)(B). Proc. (4) The terms of the plan must set forth the nondiscrimination requirements of 403(b)(12). The meal portion is based on the average costs of three daily meals at dining establishments typically used by federal employees in that location. Proc. (For information regarding benefits, rights, and features, and the determination of current availability, see 1.401(a)(4)-4.). In the case of an Adoption Agreement Plan, the adoption agreement must state that it is to be used with only one basic plan document and must identify that document. Notice 2020-71, as modified by this notice, provides the rates and list of high-cost localities for the period October 1, 2020, to September 30, 2021. OPINION LETTER APPLICATIONS INSTRUCTIONS TO PROVIDERS AND OTHER RULES FOR APPLICATIONS AND OPINION LETTERS, SECTION 11. It is not used where a position in a prior ruling is being changed. (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. 2016-37 sets forth the deadline for the timely adoption of an interim amendment to a qualified pre-approved plan. Provided that Employer X adopts timely interim amendments, Employer Xs plan will remain eligible for the Cycle through the end of Cycle 3. Proc. A Provider may apply for Opinion Letters for any number of 403(b) Pre-approved Plans. .01 Scope of review The IRS will review the plans that have been submitted during the On-Cycle Submission Period for a Cycle (as well as later identical adopter applications and applications that are off-cycle that the IRS will review in accordance with section 12) taking into account the applicable Cumulative List for the Cycle. .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. A Mass Submitter must bracket and identify the optional provisions when submitting the plan to the IRS, and also must provide the IRS a written representation describing the choices available to Providers and the coordination of optional provisions. Proc. As a result of this modification, the interim amendment deadline set forth in section 15.06(1)(a) of Rev. .01 Expiration of the limited extension of the Initial Remedial Amendment Period Provided that an initial amendment is timely made in accordance with section 13.03 of Rev. 654. Proc. .01 Opinion Letters Applications for an Opinion Letter, including applications filed by Mass Submitters, should be sent to: Internal Revenue Service Attn: Pre-Approved Plans Coordinator Room 6-403, Group 7521 P.O. Specific eligibility requirements and submission procedures applicable to filing a Form 5307 determination letter application will be provided in a future update of Rev. The Bulletin is divided into four parts as follows: Part I.1986 Code. In that case, the plan number given to the basic plan document must remain the same as in the prior submission. checked): Under penalties of perjury, I declare that the Provider identified in line 2 of this application has adopted a Pre-approved Plan that is identical to the Mass Submitter plan identified in line 8, or is a minor modifier adopter of the Mass Submitter plan identified in line 8. Proc. 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. See section 11 for rules relating to Mass Submitter plans, including procedures for identical adopters and minor modifier adopters of Mass Submitter plans. (c) any plan not described in (a) or (b). .29 Single Document Plan See section 4.27(2). The principal author of this revenue procedure is Patrick Gutierrez of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). Comprehensive governments, Explore our c. The following locality has been removed from the list of high-cost localities: Gulf Breeze, Florida. .11 Rev. Proc. The more you buy, the more you save with our quantity Section 3 of Rev. 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. It is published weekly. 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. The application must include a copy of the plan document and any adoption agreement, if applicable. The application form (or Appendix A) must be typed. Proc. Thus, the representation must indicate whether a Providers plan may include only one of a certain group of optional provisions, may include only a specific combination of provisions, or may exclude the provisions entirely. management, Document (2) Notwithstanding the other provisions of this section 8, an Opinion Letter issued for a Standardized Plan may not be relied upon with respect to the requirements of 415 if the Adopting Employer or any of its Related Employers maintains another 403(b) plan covering any of the same participants as the Standardized Plan, unless the other plan is also a Standardized Plan. 1. Employers can use the high-low method for substantiating lodging, meals, and incidental expenses, or for substantiating meal and incidental expenses only (M&IE). Proc. 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 retains the right to request and secure from the Provider in appropriate circumstances copies of all interim amendments (and initial amendments, if applicable) reflected on the applicable Cumulative List that the Provider has adopted on behalf of its Adopting Employers. .19 On-Cycle Submission Period See section 4.24. 828, for administrative procedures for seeking an opinion letter for individual retirement arrangements under 408.). Proc. Minor modifier adopter of Mass Submitter plan. 18 cents per mile driven for medical or moving purposes for qualified active duty members of the Armed Forces, up 4 cents from the rate for 2021. EXPIRATION OF REMEDIAL AMENDMENT PERIOD, SECTION 23. Thomson Reuters/Tax & Accounting. 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. .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. For example, the adoption agreement, if applicable, should be amended to require that an Adopting Employer identify whether it is a non-QCCO (in which case, its employees participating in the plan would be subject to the nondiscrimination requirements of 403(b)(12)). 1392 (or successor), provides rules for using a per diem rate to substantiate, under 274(d) of the Internal Revenue Code and 1.274-5 of the Income Tax Regulations, the amount of ordinary and necessary business expenses paid or incurred while traveling away from home. 2020-21 is extended. Foreign Per Diem Rates In U.S. This revenue procedure amplifies Rev. .16 Newly Approved 403(b) Pre-approved Plan See section 4.27(3)(b). 2021-3. The provisions of Rev. The procedure for amendments by the Provider also must state that, for purposes of reliance on the Opinion Letter, the Provider will no longer have the authority to amend the plan on behalf of the Adopting Employer as of the date the plan is treated as an individually designed plan pursuant to section 9.05. An Eligible Employer that adopts a Standardized Plan as an amendment to a plan other than a Standardized Plan may not rely on the Opinion Letter for the Standardized Plan with respect to whether a benefit, right, or feature that is prospectively eliminated satisfies the current availability requirements of 1.401(a)(4)-4, if applicable. 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