(From Venable LLP) The IRS has set a deadline of March 31, 2020, for 403(b) plans to be restated on IRS pre-approved documents if a plan sponsor wishes to gain assurance that its plan document provisions retroactively meet IRS requirements. In 2013, the IRS announced a pre-approval program for 403(b) plan documents that would operate in a manner similar to that of long-standing IRS pre-approval programs for tax-qualified plans, such as 401(k) plans. Many recordkeepers and third-party administrators now offer IRS pre-approved 403(b) plan documents and have been working with their plan sponsor clients to restate their plans.
Organizations may amend and restate 403(b) plans retroactively to a date as early as January 1, 2010. However, the restatement must accurately reflect all plan terms as amended going back to the restatement effective date, which could be challenging due to the constraints of an IRS pre-approved document plan. Sponsors can use the amending restatement process as "an opportunity to discuss potential design changes and enhancements, and review plan governance practices," said Venable.
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