Close
Close

IRS creates system to fix 403(b) plan defects

RFP
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.

Contact
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 .

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.