The IRS is extending the last day of the initial remedial amendment period for Section 403(b) plans from March 31 to June 30. Plan sponsors now have until June 30,to update their pre-approved and individually designed 403(b) plan documents.
Revenue Procedure 2019-39 provides a system of recurring remedial amendment periods for correcting form defects for both individually designed and pre-approved 403(b) plans. The IRS intends to issue guidance to modify Rev. Proc. 2019-39 to replace applicable references to March 31 with June 30,. For example, the rules for the recurring remedial amendment periods for 403(b) individually designed plans now will apply to form defects first occurring after June 30 and the second cycle for 403(b) pre‑approved plans will begin on July 1.
403(b) plan sponsors were likely nearly done with actions items to comply with the remedial amendment period deadline, but with the coronavirus pandemic disrupting work environments and moving many businesses to remote working arrangements, it may have been more difficult to complete finishing items.
Likewise, the IRS is extending the following deadlines to July 31:
- the April 30 deadline for employers to adopt a pre-approved defined benefit (DB) plan and to submit a determination letter application (if eligible) under the second six-year remedial amendment cycle, and
- the April 30 end of the second six-year remedial amendment cycle for pre-approved DB plans, as set forth in Announcement 2018-05.