Updating 403 b plan dating during a marriage separation
It is working on a pre-approval program and hopes to launch a master and prototype program by July 1, 2009.
This may be followed by a determination letter program on plan status.
The defects to be addressed by the voluntary correction program will focus on the written plan requirement, Architect stated.
The IRS is busy preparing other guidance for 403(b) plans, Architect announced.
For individually-designed plans that convert to a defined contribution pre-approved plan on or after January 1, 2016, the IRS has provided additional time until April 30, 2017 to adopt a restatement and apply for a determination letter.
Update on Plan Documents for ESOPs, Cash Balance Plans and 403(b) Plans The IRS has expanded its pre-approved program to include employee stock ownership plans (ESOPs) and cash balance plans, as well as 403(b) pre-approved plans.
Employers that use a pre-approved defined contribution plan document should contact the document provider immediately if the restatement process has not already been initiated. The IRS previously announced the elimination of the determination letter program for individually-designed plans effective January 31, 2017.
The current and final cycle is Cycle A for individually-designed plan sponsors with Employer Identification Numbers (EINs) ending in a "1" or a "6".
403(b) plans are also referred to as a tax-sheltered annuity although since 1974 they no longer are restricted to an annuity form and participants can also invest in mutual funds.The Employee Retirement Income Security Act (ERISA) does not require 403(b) plans to be technically "qualified" plans (i.e., plans governed by U. Tax Code 401(a)), but 403(b) plans have the same general appearance as qualified plans.While the option is available it is not known how prevalent or if any 403(b) plan has been started or amended to be ERISA-qualified.For the latest cycle, employers with pre-approved defined contribution plan documents have until April 30, 2016 to adopt a restated plan document.It’s an important deadline because a plan must be updated by the deadline in order to maintain its tax-qualified status.
The Internal Revenue Service (IRS) has established deadlines for retirement plans to be "restated" or updated for changes in the law.