IRS creates system to fix 403(b) plan defects

Tax Hot Topics newsletterThe IRS recently released Rev. Proc. 2019-39, which sets forth a system of recurring remedial amendment periods for correcting form defects in a Section 403(b) individually designed or pre-approved plan that first occur after March 31, 2020 (the ending date for the initial remedial amendment period under Rev. Proc. 2013-22).

The guidance also provides a limited extension of the initial remedial amendment period for certain form defects. In addition, it follows Rev. Proc. 2013-22 in establishing a system of Section 403(b) pre-approved plan cycles under which a Section 403(b) pre-approved plan sponsor may submit a proposed Section 403(b) pre-approved plan for review by the IRS. Once approved, it may be made available for adoption by eligible employers. Rev. Proc. 2019-39 also provides deadlines for the adoption of plan amendments for Section 403(b) individually designed plans and Section 403(b) pre-approved plans.

Jeff Martin
Partner, Washington National Tax Office
T +1 202 521 1526

Keith Mong
Managing Director
Washington National Tax Office
T +1 202 521 1554

James Sanchez
Senior Associate
Washington National Tax Office
T +1 202 861 4107 .

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