The Internal Revenue Service issued Revenue Procedure 2013-22 yesterday (March 28, 2013). The Revenue Procedure describes the Service’s new procedure for issuing opinion letters and advisory letters for prototype and volume-submitter § 403(b) plans; it revises the proposed procedure that was released four years ago in Announcement 2009-34. As
Continue Reading IRS Announces § 403(b) Plan Document Review Procedure for Prototype and Volume-Submitter Plans
§403(b)
IRS Releases VCP Kit to Help 403(b) Plan Sponsors Who Failed to Timely Adopt a Plan Document
By Julie Edmond on
Posted in Defined Contributions Plans
A § 403(b) plan that failed to adopt a plan document by December 31, 2009 is not entitled to favorable tax treatment. However, under new guidance, a plan may regain its favorable tax treatment if it adopts a written plan document and requests a compliance statement through the Voluntary Compliance Program (“VCP”).
The IRS recently released a Voluntary Correction Program Submission Kit to assist sponsors of § 403(b) retirement plans who failed to adopt a written plan document before January 1, 2010. The Submission Kit includes the forms a plan sponsor must submit to request a compliance statement as well as completed sample forms.
Plan sponsors of § 403(b) plans who failed to timely adopt a written plan document should consider completing a VCP submission before the end of 2013. Correction fees have been temporarily reduced; fees are 50 percent of the normal amount for plan sponsors who submit a VCP request before December 31, 2013 if the only failure is the failure of a § 403(b) plan to timely adopt a written plan document.
Continue Reading IRS Releases VCP Kit to Help 403(b) Plan Sponsors Who Failed to Timely Adopt a Plan Document