The Introduction at the beginning of this issue describes the purpose and content of this publication. (d) in the case of a provision that is integral to a 403(b) Requirement that has been changed, the date the plan is first operated in accordance with the provision, as amended. 140, which sets forth areas of the Internal Revenue Code (Code) relating to issues on which the Internal Revenue Service (Service) will not issue letter rulings or determination letters. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. This revenue procedure provides temporary guidance regarding the public approval requirement under 147(f) of the Internal Revenue Code for tax-exempt qualified private activity bonds. However, an Adopting Employer of 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). .19 Section 13 of Rev. 2013-22 provides that the first day of the plans Initial Remedial Amendment Period is the later of January 1, 2010, or the effective date of the plan. In addition, an Opinion Letter will not be issued under this revenue procedure for prototype plans intended to meet the requirements for individual retirement arrangements under 408. statement, 2019 To the extent feasible, lead plans and substantially identical plans should be submitted together. When there are changes to 403(b) Requirements that affect the provisions of the written plan document, the adoption of interim amendments generally will be required in accordance with the rules set forth in section 11.04 of Rev. making. IR-2021-225, November 16, 2021. The IRS has announced the special per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2021. For a full schedule of per diem rates by destination, click on any of the states below. See Section 2.01 of Rev. .06 Prior to the On-Cycle Submission Period for Cycle 2, the IRS will issue a Cumulative List that identifies changes in the 403(b) Requirements that will be taken into account with respect to a plan document submitted to the IRS for Cycle 2 and that were not taken into account by the IRS in its review during Cycle 1. .01 Provider plan amendments generally Providers are required to amend their 403(b) Pre-approved Plans to ensure that the form of their plans continues to satisfy the 403(b) Requirements. This revenue procedure modifies the interim amendment deadline set forth in section 15.04(1) of Rev. To expedite the review of substantially identical plans that are not Mass Submitter plans, the IRS encourages plan drafters and Providers to include with each Opinion Letter application, if appropriate, a cover letter setting forth the following information: (1) the name and file folder number (if available) of the plan that, for review purposes, the plan drafter designates as the lead plan (including the name and EIN of the Provider); (2) a list of all plans written by the plan drafter that are substantially identical to the lead plan (including the information described in paragraph (1) of this section 10.05 for each plan); (3) a description of each location in the plan for which the application is being submitted that is not word-for-word identical to the language of the lead plan, including an explanation of the purpose and effect of each difference; and. 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. .05 An Opinion Letter does not consider issues related to a plans coverage of multiple employers that are not in a single controlled group For a 403(b) Pre-approved Plan that is not a Governmental Plan, an Opinion Letter does not express an opinion, and may not be relied upon, with respect to whether the plan meets any requirements that apply due to a plans coverage of multiple employers that are not in a single controlled group for purposes of 414(b), (c), (m), or (o) and the regulations thereunder. .12 The amendment deadline for an interim amendment to a 403(b) Pre-approved Plan that is not a Governmental Plan is the end of the second calendar year following the calendar year in which the change in 403(b) Requirements is effective. 1121, during which certain telephonic hearings are permitted. You may use the dropdown box below to select a country. Proc. Proc. Proc. The 2022 mileage rate will automatically show in the travel and expense reimbursement system (Concur) effective July 1, 2022. (Compare with modified, below). Proc. REVOCATION OF OPINION LETTER BY THE IRS, SECTION 21. The plan submitted for a Form 5307 determination letter will be reviewed based on the Cumulative List applicable to the underlying 403(b) Pre-approved Plan. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. To comply with the 403(b) Requirements, however, a plan must comply operationally with each relevant 403(b) Requirement, even if the requirement is not included on an Operational Compliance List. See section 4.04 of Rev. .15 Minor Modification See section 11.03(2). The US military pays its members per diem in accordance with the Joint Travel Regulations. The application must be typed. .13 Section 5 of Rev. The application form (or Appendix A) must be typed. A cloud-based tax Proc. .03 Section 15.04(1) of Rev. 2016-37, which is applicable to a governmental plan within the meaning of 414(d), and which is determined by reference to the interim amendment deadline for a plan that is not a governmental plan, is modified. A basic plan document and all associated adoption agreements should be submitted simultaneously. This notice, which replacesIRS Notice 2020-71(see our Checkpointarticle), announces rates for use under the optional high-low substantiation method, special rates for transportation industry employers, and the rate for taxpayers taking a deduction only for incidental expenses. (c) Existing 403(b) Pre-approved Plan An Existing 403(b) Pre-approved Plan, which is a plan (other than a Newly Approved 403(b) Pre-approved Plan) that has received an Opinion Letter for the immediately preceding Cycle. 274 (n) (2) (D), a taxpayer that properly applies the rules of Rev. Proc. Proc. Section 2.13. 136, as modified by Rev. 2017-18 and Rev. 2015-22 modifies Rev. Proc. 2017-18, as modified by Notice 2020-35, expired on June 30, 2020. .05 Section 15.06(2) of Rev. Except as provided in section 6 of this notice, this notice is effective for per diem allowances for lodging, meal and incidental expenses, or for meal and incidental expenses only, that are paid to any employee on or after October 1, 2021, for travel away from home on or after October 1, 2021. .08 Sample language The IRS anticipates providing updated LRMs before the On-Cycle Submission Period with respect to a Cycle begins. .04 An Adopting Employer of a Nonstandardized Plan that makes amendments to the plan that are not extensive will lose reliance on the Nonstandardized Plans Opinion Letter, but may obtain reliance that the form of the plan, as amended, satisfies the 403(b) Requirements by requesting a determination letter using Form 5307 (as updated), under procedures similar to the procedures applicable to 401(a) pre-approved plans. 2019-39. For a 403(b) Pre-approved Plan that is a Governmental Plan, an Opinion Letter does not express an opinion, and may not be relied upon, with respect to whether the plan meets any requirements that apply due to a plans coverage of multiple employers that are not aggregated in a single controlled group in a manner consistent with Notice 89-23. Investment arrangement(s) permitted under the Providers plan: _____a. Proc. Section 1.147(f)-1(d)(2) provides that the public hearing must be held in a location that, based on the facts and circumstances, is convenient for residents of the approving governmental unit. 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. .01 Scope of review The IRS will review the plans that have been submitted during the On-Cycle Submission Period for a Cycle (as well as later identical adopter applications and applications that are off-cycle that the IRS will review in accordance with section 12) taking into account the applicable Cumulative List for the Cycle. In the case of a plan maintained by more than one employer, the remedial amendment period ends on the last day of the tenth month following the last day of the plan year in which the remedial amendment period begins. 948, and Rev. (b) Newly Approved 403(b) Pre-approved Plan A Newly Approved 403(b) Pre-approved Plan, which is a plan for which an Opinion Letter has been issued for the Cycle. See also Rev. (1) a provision that causes a plan to fail to satisfy the 403(b) Requirements; (2) the absence of a provision that causes a plan to fail to satisfy the 403(b) Requirements; (3) a provision of a plan that is integral to a 403(b) Requirement that has been changed (either by statute, or in regulations or other guidance published in the Internal Revenue Bulletin); or. 2021-3 is amplified. Additionally, the IRS requests that applications be submitted by thumb or flash drive instead of being submitted as paper files, and that the documents be saved in Microsoft Word or Adobe Acrobat PDF format. 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. .04 The IRS issued Cycle 1 opinion and advisory letters for 403(b) Pre-approved Plans beginning in March 2017. WASHINGTON The Internal Revenue Service today issued Notice 2021-63PDF to make clear how the temporary 100% business deduction for food or beverages from restaurants applies to taxpayers properly applying the rules of Revenue Procedure 2019-48PDF for using per diem rates. or 4.d. 2016-37 and Rev. See section 8. .23 Rev. or 4.d. .01 Expiration of the limited extension of the Initial Remedial Amendment Period Provided that an initial amendment is timely made in accordance with section 13.03 of Rev. Integrated software Proc. Changes to the information in the required appendix will not affect the Adopting Employers ability to rely on an Opinion Letter. Per diem (Latin for "per day" or "for each day") or daily allowance is a specific amount of money that an organization gives an individual, typically an employee, per day to cover living .02 IRS retains information Even though an application is withdrawn, the IRS will retain all correspondence and documents associated with that application and will not return them to the Provider. A Single Document Plan consists of a single plan document offered by a Provider without an adoption agreement. Proc. (5) 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, non-QCCO, or minister. Instead, the Mass Submitter should submit a restated plan, including the amendments, during the next Cycle. ADDITIONAL REQUIREMENTS FOR MASS SUBMITTERS, SECTION 13. REVIEW OF OPINION LETTER APPLICATIONS; ISSUANCE OF OPINION LETTERS; EMPLOYER ADOPTION WINDOW, SECTION 15. 2021-3, 2021-1 I.R.B. Pursuant to this revenue procedure, the On-Cycle Submission Period for Providers to submit applications for an Opinion Letter for Cycle 2 begins on May 2, 2022, and ends on May 1, 2023. The IRS anticipates establishing a program that would permit Adopting Employers to apply for a determination letter on Form 5300, Application for Determination for Employee Benefit Plan, under rules and procedures similar to the rules and procedures applicable to 401(a) pre-approved plans (see section 20.03 of Rev. In this case, the Adopting Employer generally will lose reliance on the Opinion Letter as of the effective date of the amendments but the plan will remain eligible for the Cycle system (provided that the Adopting Employer adopts timely interim amendments) until the end of the Cycle that includes the effective date. In the case of a change in entity with respect to a Provider, an Opinion Letter issued to the Provider may not be utilized by the changed entity. See section 10.04 of this revenue procedure for additional application submission requirements for interim amendments. It further provides that upon issuance of a new opinion or advisory letter for the restated plan, Adopting Employers generally are required to adopt the restated plan. The weekly Internal Revenue Bulletins are available at www.irs.gov/irb/. Significantly, the entire credit was refundable, meaning that it was available to those with no earned income. See section 22 of this revenue procedure regarding the deadline by which interim amendments must be adopted. 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. releases, Your Proc. .01 Rev. 2019-39 to change the expiration date of the Initial Remedial Amendment Period, and all dates that are based on the expiration of the Initial Remedial Amendment Period, from March 31, 2020 to June 30, 2020. .02 Notification to employers A Provider that intends to discontinue sponsorship of a 403(b) Pre-approved Plan that has one or more Adopting Employers must inform each Adopting Employer of the date on which the Provider will discontinue sponsorship, and that the Adopting Employers plan will cease to be a 403(b) Pre-approved Plan and convert to an individually designed plan on that date. .10 Rev. Proc. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. .03 Inclusion of Investment Arrangements in the 403(b) Pre-approved Plan A 403(b) Pre-approved Plan includes the Investment Arrangements under the plan in addition to the single plan document or the basic plan document and adoption agreement. This annual notice provides the 2021-2022 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, specifically (1) the special transportation industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method. Any Provider that does not wish to make the amendments made by a Mass Submitter may switch to another Mass Submitter or may submit an application for an Opinion Letter on its own behalf during the next applicable On-Cycle Submission Period for 403(b) Pre-approved Plans. Generally, a space should be provided in the plan with instructions for the Adopting Employer to add language as necessary to satisfy 415. 2019-39 provides that, except as otherwise provided by statute, or in regulations or other guidance published in the Internal Revenue Bulletin, and provided that an interim amendment (if applicable) is made timely and in good faith with the intent of complying with the 403(b) Requirements, the Remedial Amendment Period with respect to a 403(b) Pre-approved Plan Form Defect first occurring after the Initial Remedial Amendment Period will end no earlier than the end of Cycle 2 and that the IRS intends to issue guidance providing additional rules for determining the end of the Remedial Amendment Period. An Adopting Employer that fails to adopt a newly approved version of a 403(b) Pre-approved Plan by the end of any Employer Adoption Window will no longer be treated as maintaining a 403(b) Pre-approved Plan. The Provider must also notify an Adopting Employer that failure to timely adopt the plan or restatement, when required, or failure to take into account plan amendments in the operation of the plan, could result in adverse tax consequences. 2019-39 provides that every 403(b) Pre-approved Plan will have a recurring Cycle. (c) either (i) the only contributions under the plan are elective deferrals, or (ii) the plan provides for contributions other than elective deferrals and all of the employers in the Adopting Employers controlled group are Eligible Employers. For a Governmental Plan, Related Employers means all employers that are aggregated with the Adopting Employer in a manner consistent with Notice 89-23, 1989-1 C.B. Proc. Rev. All rights reserved. An Investment Arrangement may be an annuity contract under 1.403(b)-2(b)(2), a custodial account under 403(b)(7), or a Retirement Income Account. Annual high-low rates. Nor does it prevent a 403(b) Pre-approved Plan from using Investment Arrangements that are more restrictive than required by 403(b) or the single plan document or the basic plan document and adoption agreement. However, the rates vary depending on location. (4) By submitting an application for an Opinion Letter for a 403(b) Pre-approved Plan under this revenue procedure (or by having an application filed on its behalf by a Mass Submitter), a person represents to the IRS that it is a Provider, and that it agrees to comply with any requirements imposed on Providers by this revenue procedure. .05 This revenue procedure sets forth the date on which the limited extension of the Initial Remedial Amendment Period described in section 4.113 expires and extends the deadline for adopting an initial amendment (if applicable) that is required under certain circumstances in order for the limited extension of the Initial Remedial Amendment Period to apply. 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. 2019-39 provides that a Provider (or Eligible Employer) is considered to have adopted an interim amendment timely if the amendment is adopted by the later of (1) 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, or (2) in the case of a Governmental Plan, the later of (a) 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, or (b) 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins on or after the date the plan amendment becomes effective. 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