Proc. For these purposes, a custodial account and a Retirement Income Account are treated as a 403(b) annuity contract. Not all locations have their own per diem established, in which case you would use the standard amount of $96 for lodging and $55 for M & IE. .07 Section 21.03 of Rev. An Opinion Letter constitutes a determination that the form of a 403(b) Pre-approved Plan satisfies the 403(b) Requirements, subject to the requirements and limitations of this revenue procedure. In that case, the plan number given to the basic plan document must remain the same as in the prior submission. For example, a Flexible Plan could include as an optional provision a provision permitting participant loans, provided that the provision satisfies the 403(b) Requirements and the plan is drafted so that the exclusion of the provision does not cause the plan to fail to satisfy the 403(b) Requirements. 944, and Rev. To assist Eligible Employers in achieving operational compliance, updates to the Operational Compliance List currently maintained on the IRS website include changes in 403(b) Requirements that are effective during a calendar year. If there nevertheless is a conflict, the terms of the single plan document or the basic plan document and adoption agreement, as applicable, must control. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. Similarly, a later deadline is provided for a 403(b) Pre-approved Plan that is a Governmental Plan. Proc. See section 23.02. The Adopting Employer must sign and date the adoption agreement or signature page of the plan when it first adopts the plan and must complete, sign, and date a new adoption agreement or signature page if the plan has been restated. Proc. Section 2.13. 3507) under control number 1545-0047. .09 Any Nonstandardized Plan may provide for either safe harbor or non-safe harbor hardship distributions. 2016-37 is deleted. No results could be found for the location you've entered. .17 Non-qualified Church-Controlled Organization or Non-QCCO A Non-qualified Church-Controlled Organization or Non-QCCO is a church-controlled tax-exempt organization described in 501(c)(3) that is not a QCCO. Proc. Proc. Similarly, if the inclusion (or deletion) of a specific optional provision in a Providers plan will automatically result in the inclusion (or deletion) of any other optional provision, this must be set forth in the Mass Submitters representation. The Service has determined that it is in the interest of sound tax administration not to issue rulings on such transactions while it reviews their proper tax treatment. During the first year of Cycle 3, Employer X makes an amendment described in section 9.05(1), effective as of the first day of the plan year that begins during the first year of Cycle 3. Significantly, the entire credit was refundable, meaning that it was available to those with no earned income. In the case of a plan maintained by one employer, the remedial amendment period ends on the later of: (1) the due date (including extensions) for filing the income tax return for the employers taxable year that includes the date on which the remedial amendment period begins; or (2) the last day of the plan year that includes the date on which the remedial amendment period begins. In general, an interim amendment is considered to have been adopted timely if it is adopted by the end of the remedial amendment period described in section 2.07 of Rev. 2018-21, 2018-14 I.R.B. Part IV.Items of General Interest. This section 16 does not impose a requirement on a Provider to monitor compliance of an Adopting Employers plan with the 403(b) Requirements, but it provides that the Provider has a duty to inform the Adopting Employer if the Provider has knowledge that the Adopting Employers plan may no longer satisfy those requirements. Per Diem Rates Rates are set by fiscal year, effective October 1 each year. 3. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. .18 Nonstandardized Plan A Nonstandardized Plan is a 403(b) Pre-approved Plan that is not a Standardized Plan. The notification to each Adopting Employer must explain how the revocation affects any reliance an Adopting Employer has on the applicable Opinion Letter and on any determination letter issued. Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. See section 4.27. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legislation and Related Committee Reports. Proc. (1) A plans Initial Remedial Amendment Period is the Remedial Amendment Period provided under Rev. .01 Opinion Letters Applications for an Opinion Letter, including applications filed by Mass Submitters, should be sent to: Internal Revenue Service Attn: Pre-Approved Plans Coordinator Room 6-403, Group 7521 P.O. Except in the case of certain Nonstandardized Plans described in this section 5.06, contributions other than elective deferrals (and earnings thereon) under a 403(b) Pre-approved Plan must vest at least as rapidly as would be required to satisfy the minimum vesting requirements of 411(a)(2)(B) applicable to a qualified plan under 401(a), even if the plan is not subject to the parallel minimum vesting requirements under ERISA 203. 2021-37. 2019-48 (or successor) for transition rules for the last 3 months of calendar year 2021. 2021-37. Accordingly, the provisions described in sections 5.03 through 5.17 (and sections 5.18 and 5.19, if applicable) must be included in the single plan document or the basic plan document or adoption agreement, as appropriate, of every 403(b) Pre-approved Plan, regardless of the terms of any Investment Arrangements under the plan or any other documents that may be incorporated by reference. Available athttps://www.irs.gov/pub/irs-drop/n-21-52.pdf. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. See section 8.04 for situations in which an Adopting Employer may obtain a determination letter using Form 5307 (as updated). Qualified Church-Controlled Organization, _____c. Proc. Proc. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series. .14 Sections 10 and 11 of Rev. The more you buy, the more you save with our quantity The amount of the $296 high rate and $202 low rate that is treated as paid for meals for purposes of 274(n) is $74 for travel to any high-cost locality and $64 for travel to any other locality within CONUS. .14 Mass Submitter A Mass Submitter is any person that: (1) has an established place of business in the United States where it is accessible during every business day, and (2) submits Opinion Letter applications on behalf of at least 15 unaffiliated Providers, each of which is offering, on a word-for-word identical basis, the same plan. Proc. Providers that adopt the Flexible Plan may include or delete any optional provision that is designated as an optional provision in the Mass Submitters plan, provided the inclusion or deletion of specific optional provisions conforms to the Mass Submitters written representation to the IRS concerning the choices available to Providers and the coordination of optional provisions. .03 Plans for which an Opinion Letter will not be issued An Opinion Letter will not be issued for: (1) a plan under which the 415 limitations are incorporated by reference; (2) a plan under which the actual contribution percentage (ACP) test under 401(m)(2) is incorporated by reference; (3) a Nonstandardized Plan that provides for hardship distributions under circumstances not described in the safe harbor standards in the regulations under 401(k), unless the availability of these distributions is subject to nondiscriminatory and objective criteria included in the plan; (4) a plan that includes blanks or fill-in provisions for the Adopting Employer to complete, unless the provisions have parameters that preclude the Adopting Employer from completing the provisions in a manner that could violate the 403(b) Requirements; (5) a TEFRA church defined benefit plan (see 1.403(b)-10(f)(2)); or. The IRS retains the right to request and secure from the Provider in appropriate circumstances copies of all interim amendments (and initial amendments, if applicable) reflected on the applicable Cumulative List that the Provider has adopted on behalf of its Adopting Employers. 2016-37 to extend the deadline for adopting an interim amendment for a 401(a) pre-approved plan to match the deadline for adopting an interim amendment for a 403(b) pre-approved plan, which is set forth in Rev. 92, and Rev. For example, if the forms of annuity benefit available under a plan are described in Investment Arrangements under the plan, the terms of the Investment Arrangements must satisfy, if applicable to the plan, the joint and survivor annuity requirements of ERISA 205 and any applicable related rules, such as rules relating to transfers of benefits that are subject to the joint and survivor annuity requirement, and may not have any provisions that are inconsistent with 403(b). (3) Notwithstanding the preceding provisions of this section 4.21, any person that has an established place of business in the United States where it is accessible during every business day may be a Provider that offers a plan that is word-for-word identical to a plan of a Mass Submitter (as an identical adopter) or a plan that includes Minor Modifications to a plan of a Mass Submitter (as a minor modifier adopter) regardless of the number of Eligible Employers that are expected to adopt the plan. The procedure for amendments by the Provider also must state that, for purposes of reliance on the Opinion Letter, the Provider will no longer have the authority to amend the plan on behalf of the Adopting Employer as of the date the plan is treated as an individually designed plan pursuant to section 9.05. 2017-18, 2017-5 I.R.B. 2021-4 (updated annually)). A Flexible Plan, as defined in section 11.03(1), that is offered by a Provider is considered a word-for-word identical plan. A Mass Submitter is treated as a Mass Submitter with respect to all of its plans, provided the 15 unaffiliated Provider requirement is met with respect to at least one plan. Since the terms of Investment Arrangements under a 403(b) Pre-approved Plan must be incorporated by reference into the plan and those arrangements may not have any provisions that are inconsistent with 403(b), plan terms that are required in a single plan document or the basic plan document and adoption agreement, as applicable, under this section 5 should not create a conflict with the terms of the Investment Arrangements under a properly drafted 403(b) Pre-approved Plan. The application must be typed. .04 Cycle A Cycle is a Remedial Amendment Cycle, as defined in section 4.24. Accordingly, the Treasury Department and the IRS continue to invite further comments on how to improve the Opinion Letter program. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. If the new ruling does more than restate the substance of a prior ruling, a combination of terms is used. As of January 2021, the per diem allowance is $66 per day in the continental United States. (See the Form 5305 series, which provides model IRA documents that have been pre-approved by the IRS and for which an opinion letter is not needed. In the case of multiple employers that are not part of the same controlled group (as determined under 414(b), (c), (m), or (o)) participating in the plan, each Adopting Employer must identify whether it is a Church, QCCO, or any other employer (such as a non-QCCO or minister). (d) a minister described in 414(e)(5)(A). The special M&IE rates for taxpayers in the transportation industry are $69 for any locality of travel in the continental United States (CONUS) and $74 for any locality of travel outside the continental United States (OCONUS). In addition, an Adopting Employer of any 403(b) Pre-approved Plan (whether a Standardized Plan or a Nonstandardized Plan) that adds language to satisfy the requirements of 415 due to the required aggregation of plans may obtain reliance with regard to 415 by applying for a determination letter using Form 5307 (as updated), under procedures similar to the procedures applicable to 401(a) pre-approved plans. For more information on FY 2021 travel per diem rates, please visit www.gsa.gov/perdiem. 2020-40 and Notice 2020-35. See section 10 for the instructions for Opinion Letter applications. Any plan submitted by a Mass Submitter must include language designating the Mass Submitter as agent for the Provider for purposes of making plan amendments. Proc. .02 Extended deadline for interim and initial amendments Sections 22 and 23.02, relating to deadlines for interim and initial amendments, are effective for Form Defects first occurring on or after July 1, 2020, the day Cycle 2 began. .05 The On-Cycle Submission Period for Cycle 2 will begin on May 2, 2022, and end on May 1, 2023. November 17, 2021 2021-2104 IRS clarifies that temporary 100% deduction for restaurant meals applies to meal portion of per diem payments In Notice 2021-63, the IRS clarified that the temporary 100% deduction for 2021 and 2022 for food or beverages provided by a restaurant applies to the meal portion of per diem payments. corporations, For 2013-22 is considered a Cycle 1 Opinion Letter. View sitemap, FederalPay is a free public resource site and is not affiliated with the United States government or any Government agency. By law, GSA sets these rates annually. Proc. Type(s) of contributions permitted under the Providers plan: _____a. Accordingly, under Rev. .08 All 403(b) Pre-approved Plans are required to provide a definition of Employee. The IRSs review of a Providers or Mass Submitters application for an Opinion Letter for a 403(b) Pre-approved Plan will consider only the terms of the single plan document or the basic plan document and adoption agreement, as applicable. A Cycle ends at the end of the last day of the Employer Adoption Window for that Cycle. 2020-49, 2020-48 I.R.B. Per-diems are fixed amounts to be used for lodging, meals, and incidental expenses when traveling on official business. .15 Minor Modification See section 11.03(2). 6 See section 2.20 of this revenue procedure for the extension of the expiration date of March 31, 2020, to June 30, 2020, by Notice 2020-35, 2020-25 I.R.B. Section 21.02 of Rev. .02 Other applications Any other application for an Opinion Letter (including that of a minor modifier adopter of a Mass Submitter plan) that is submitted after the applicable On-Cycle Submission Period for a Cycle is treated as off-cycle, as defined in section 10.02. .10 Provisions regarding reliance Each 403(b) Pre-approved Plan must include, in close proximity to the signature line, a statement that describes the limitations on employer reliance on an Opinion Letter. .25 Rev. Further, it sets forth a system of recurring Remedial Amendment Periods for correcting Form Defects in 403(b) Pre-approved Plans first occurring after the Initial Remedial Amendment Period (that is, after June 30, 2020), and provides a limited extension of the Initial Remedial Amendment Period for certain Form Defects. 2019-39 provides that the initial amendment must be adopted by the later of (a) the expiration of the Initial Remedial Amendment Period (that is, June 30, 2020), or (b) the end of the calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan. Examples of a change in entity include, but are not limited to, the acquisition of a Provider by another entity, the sale or transfer of the stock or assets of the Provider to another entity, and any other circumstance that results in a change in a Providers employer identification number. 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