Exempt Organizations Advisory - IRS Announces Remedial Amendment Period and Reliance for Section 403(b) Plans

By: Catherine W. Wilkinson (cwilkinson@steptoe.com)
Suzanne Ross McDowell (smcdowell@steptoe.com)

Yesterday, the IRS announced (Ann. 2009-89) that it plans to publish revenue procedures for (1) obtaining an opinion letter that the form of a prototype or other pre-approved plan meets the requirements of section 403(b), and (2) obtaining an individual determination letter for a section 403(b) plan. In the meantime, the Announcement provides for a remedial amendment period and reliance for employers that, pursuant to the upcoming revenue procedures, either adopt a preapproved plan with a favorable opinion letter or apply for an individual determination letter when available. The IRS said that employers may rely on this Announcement and should not request ruling or determination letters on the form of their section 403(b) plans at this time, pending publication of the revenue procedures.