In April 2013, the IRS issued Revenue Procedure 2013-22 establishing a pre-approved plan program for 403(b)s and offered a remedial amendment period for 403(b) plan documents. The last day of the remedial amendment period for 403(b) plans is March 31, 2020.
Now, the IRS has issued Revenue Procedure 2019-39 setting forth a system of recurring remedial amendment periods for correcting form defects in 403(b) individually designed plans and 403(b) pre-approved plans occurring after the initial remedial amendment period ends. It also provides a limited extension of the initial remedial amendment period for certain form defects. The IRS says issues that cannot be retroactively amended may be corrected under its Employee Plans Compliance Resolution System (EPCRS).
Rev. Proc. 2013-22 provides that the IRS expects future guidance to require the restatement of 403(b) pre-approved plans every six years. Accordingly, the new revenue procedure establishes a system of 403(b) pre-approved plan cycles under which an entity offering a pre-approved plan document may submit a proposed 403(b) pre-approved plan for review and approval by the IRS. Once approved, the plan may be made available for adoption by eligible employers.
Revenue Procedure 2019-39 also provides deadlines for the adoption of plan amendments for 403(b) individually designed plans and pre-approved plans.In the revenue procedure the Department of the Treasury and the IRS announce they intend to issue additional guidance, prior to the date that 403(b) pre-approved plans may next be submitted for review, relating to the system of recurring remedial amendment periods and the system of recurring pre-approved plan cycles.