The program offers employers that maintain a 403(b) plan an alternative to adopting an individually designed plan in order to satisfy the written plan requirement of the 403(b) regulations issued in 2007 (2007 Regulations). Under the program, the IRS issues opinion or advisory letters as to whether the form of a 403(b) prototype or 403(b) volume submitter plan meets the requirements of 403(b).
By adopting a 403(b) plan that has received an opinion or advisory letter, an employer may:
Satisfy the written plan requirement under the 2007 Regulations.
Employers adopting a pre-approved 403(b) plan are not able to apply for an individual determination letter for the plan at this time.
A 403(b) volume submitter plan must provide that the volume submitter practitioner can amend the plan on behalf of adopting employers. This permits changes in the IRC, regulations, revenue rulings or other guidance to be applied to all eligible employers that have adopted the plan.
Revenue Procedure 2013-22 is effective April 29, 2013 and the IRC will accept applications for opinion and advisory letters for 403(b) pre-approved plans beginning June 28, 2013.