Close
Close

IRS announces last day of Section 403(b) remedial amendment period

RFP
Tax Hot Topics: IRS announces last day of Section 403(b) remedial amendment periodIn Rev. Proc. 2017-18, the IRS announced that March 31, 2020, is the last day of the remedial amendment period for purposes of Rev. Proc. 2013-22 and Section 403(b) plans. Rev. Proc. 2013-22 set forth the procedures for issuing opinion and advisory letters for Section 403(b) pre-approved plans (i.e., prototype and volume submitter plans), but the IRS did not state in the revenue procedure the last day of the remedial amendment period.

The remedial amendment period allows an eligible employer to retroactively correct defects in the form of its written Section 403(b) plan in order to satisfy the written plan requirements of Section 403(b) by timely adopting a pre-approved plan or by otherwise timely amending its written plan. The first day of the remedial amendment period was the later of Jan. 1, 2010, or the plan’s effective date. A plan that does not satisfy the requirements of Section 403(b) in form on any day during the remedial amendment period will be considered to have satisfied the Section 403(b) requirements if, on or before March 31, 2020, all provisions of the plan necessary to satisfy Section 403(b) have been adopted and made effective in form and operation from the beginning of the remedial amendment period.

Contact
Eddie Adkins
Partner, Washington National Tax Office
+1 202 521 1565

Jeffrey Martin
Senior Manager, Washington National Tax Office
+1 202 521 1526


Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.