If you’re an eligible employer to sponsor a 403(b) plan, you can satisfy the 403(b) written plan requirement by adopting a 403(b) pre-approved plan instead of an individually designed plan. All 403(b) plans (except church plans that don't contain any retirement income accounts) must satisfy the written plan requirement. An employer that adopts a 403(b) pre-approved plan generally has assurance that its plan document complies with Internal Revenue Code Section 403(b). You still need to operate your plan according to the written terms to ensure the plan meets the requirements of IRC 403(b). You can adopt a 403(b) pre-approved plan after the pre-approved sponsor/provider receives a favorable opinion or advisory letter from the IRS. For more information, see each section below: Why you may want to adopt a 403(b) pre-approved plan 403(b) Pre-approved Plan FAQs Key provisions of the 403(b) pre-approved plan program 403(b) pre-approved plan sponsor/provider's duties List of 403(b) pre-approved plans Why you may want to adopt a 403(b) pre-approved plan Cost Typically, the cost for a pre-approved plan is less than for an individually designed plan. Reliance You generally have peace of mind that the form of the pre-approved plan meets the legal requirements. However, you should review the favorable opinion or advisory letter for complete details on the scope of the plan's letter. In addition to having all legally required provisions, a pre-approved plan may offer optional plan provisions that you can choose, usually by selecting them in the adoption agreement. Exceptions - You can't rely on a 403(b) pre-approved plan's favorable opinion or advisory letter for whether the plan's: investment arrangements meet all legal requirements. These investment arrangements include: annuity contracts, custodial accounts, or retirement income accounts. form meets all legal requirements if you modify the 403(b) pre-approved plan document. You also can't rely on a 403(b) pre-approved plan's favorable opinion or advisory letter for whether the plan is subject to, or satisfies, the requirements of Title I of ERISA. Updates Law changes may require you to amend your 403(b) plan by certain deadlines so your plan may continue meeting the 403(b) requirements. If an update is necessary, the pre-approved plan sponsor /provider must amend the plan and notify you of the amendment, or updated plan document, and your required signature, if applicable. Support services Your 403(b) pre-approved plan sponsor/provider may offer you additional support with plan administration. Make sure you carefully review and select any offered service agreement options. Return to top 403(b) Pre-approved Plan FAQs Frequently Asked Questions on the 403(b) pre-approved plan program Key provisions of the 403(b) pre-approved plan program Revenue Procedure 2013-22 — Contains details of the Cycle 1 403(b) pre-approved plan program and the procedures to apply for an opinion or advisory letter and provides a remedial amendment period for eligible employers who adopt a pre-approved 403(b) plan with a favorable opinion letter. Revenue Procedure 2017-18 (Pre-approved 403(b) plans) — Provides that the last day of the Cycle 1 remedial amendment period for Section 403(b) plans, for purposes of section 21 of Rev. Proc. 2013-22, 2013-18 I.R.B. 985, is March 31, 2020. This date was later extended to June 30, 2020, by Notice 2020-35. Revenue Procedure 2019-39 —Describes the system of recurring remedial amendment periods for correcting form defects in 403(b) individually designed plans and 403(b) pre-approved plans first occurring after the end of the Cycle 1 remedial amendment period. Revenue Procedure 2021-37– Describes the IRS procedures for issuing opinion letters to Cycle 2 403(b) pre-approved plans. It also discusses the rules for determining when remedial amendment periods expire for 403(b) pre-approved plans after the end of the Cycle 1 remedial amendment period. An employer that adopts a 403(b) pre-approved plan generally has assurance that its plan document complies with IRC Section 403(b). Return to top 403(b) pre-approved plan sponsor/provider's duties Generally, a pre-approved plan sponsor/provider must: keep a written record of the eligible employers who adopted its plan and if requested by IRS, provide their names, addresses and EINs; and keep the plan approved by: amending the plan for law changes, applying for a new opinion letter when required, informing about and providing each adopting employer all restated plans, amendments, and opinion or advisory letters, and complying with all required notice procedures. Scope of an opinion or advisory letter: IRS will issue a favorable opinion or advisory letter to a pre-approved 403(b) plan if the submitted plan meets the requirements of IRC Section 403(b). A favorable opinion or advisory letter won't cover whether the plan is subject to, or satisfies, Title I of ERISA, any investment arrangement terms or other documents incorporated by reference. Application procedures for sponsor/provider Plan providers can submit an off-cycle submission for Cycle 1 that are word-for-word identical or a minor modifier of a Mass Submitter’s Cycle 1 403(b) pre-approved plan. Return to top List of Cycle 2 403(b) pre-approved plans This list includes pre-approved plans that were submitted to the IRS for opinion letters from May 2, 2022 to May 1, 2023, covering the 2022 Cumulative List. Rev. Proc. 2021-37 changed the pre-approved program so that Prototype and Volume Submitter plans are combined into a single opinion letter program. Additionally, the types of plans are now reflected simply as either standardized or non-standardized pre-approved plans. Once the reviews are complete the list will contain the letter serial numbers and date. List of Cycle 2 Pre-Approved 403(b) Plans under Rev. Proc. 2021-37 PDF The list may be updated periodically. It includes: The name of the Pre-approved Plan Provider The file folder number (FFN) assigned to each plan The plan type of each plan submitted A letter serial number (LSN) and date. Please note that virtually all opinion letters will be issued at the same time. List of Cycle 1 403(b) pre-approved plans This list includes Prototype (P) and Volume Submitter (VS) plans that were submitted to the IRS for opinion or advisory letters from June 28, 2013 to November 15, 2017, covering the final regulations under IRC 403(b) which were issued in 2007 (2007 final regulations). List of Cycle 1 Pre-Approved 403(b) Plans under Rev. Proc. 2013-22 PDF The list may be updated periodically. It includes: The name of the prototype sponsor or volume submitter practitioner The file folder number (FFN) assigned to each plan The plan type of each plan submitted A letter serial number (LSN) and date. Please note that virtually all opinion and advisory letters were issued at the same time, March 31, 2017. Determining the type of plan The third digit of the FFN indicates the type of plan being approved. For example, a number 2 or 3 respectively denote a standardized or non-standardized prototype plan; a 5 or 6 depicts a volume submitter plan. A number 7 indicates a second cycle pre-approved plan. To determine whether a second cycle plan is standardized or nonstandardized, look at the plan type column of the list. For cycle 1 the numbers 2 or 3 respectively denote a standardized or nonstandardized Prototype plan; a 5 or 6 depicts a volume submitter plan. Cycle 1 Remedial amendment period Section 21 of Rev. Proc. 2013-22 established a remedial amendment period under which an eligible employer can retroactively correct form defects in its written 403(b) plan in order to satisfy the written plan document requirement of the 2007 final regulations. An eligible employer who adopts a prototype or volume submitter plan with a Cycle 1 opinion or advisory letter on or before the end of this remedial amendment period, retroactive to the first day of such remedial amendment period will automatically be considered to have corrected any form defects (except to the extent any document incorporated by reference into the plan must be amended). The selection of the last day of the remedial amendment period for Section 403(b) plans was reserved in Section 21 of Rev. Proc. 2013-22 (setting forth the procedures for issuing Cycle 1 opinion and advisory letters for Section 403(b) pre-approved plans). The last day of the remedial amendment period by which an eligible employer must adopt an approved Cycle 1 prototype or volume submitter plan, or otherwise amend its plan in the case of an individually designed plan, is addressed in Rev. Proc. 2017-18. This revenue procedure provides that the last day of the remedial amendment period for Section 403(b) plans, for purposes of Rev. Proc. 2013-22, section 21, is March 31, 2020. This date was later extended to June 30, 2020, by Notice 2020-35. Remedial Amendment Period After Cycle 1 Provided any interim amendments are made timely, except as otherwise provided by statute, regulations, or other guidance published in the Internal Revenue Bulletin, the Remedial Amendment Period for a Form Defect first occurring after the Initial Remedial Amendment Period, expires at the later of (1) the end of the Cycle that includes the date on which the Remedial Amendment Period would have ended if the plan were an individually designed plan, or (2) the end of the first Cycle in which an application for an Opinion Letter that considers the Form Defect may be submitted. See section 21 of Rev. Proc. 2021-37. A “Remedial Amendment Cycle” or “Cycle” means one of a series of recurring Remedial Amendment Periods applicable to Code section 403(b) Pre-approved Plans, during which a Provider submits a proposed Code section 403(b) Pre-approved Plan for review and approval by the IRS, and during which the plan, once approved, is adopted by Eligible Employers. Providers and Mass Submitters must submit applications for an Opinion Letter during the one-year submission period (referred to as the On-Cycle Submission Period) that relates to an applicable Cycle. When the review of Code section 403(b) Pre-approved Plan documents for a specific Cycle is close to being completed, the IRS will announce the date by which Adopting Employers must adopt Newly Approved Code section 403(b) Pre-approved Plans. Depending upon the length of the review process, Eligible Employers will have approximately a two-year period to adopt the updated plan (Employer Adoption Window). A Cycle ends at the end of the last day of the Employer Adoption Window for that Cycle. The next Cycle begins on the following day. The On-Cycle Submission Period for a Cycle may begin after the start of that Cycle. Return to top Additional Resources 403(b) Plans - adopt and maintain a 403(b) plan Determination, Opinion and Advisory Letters Amend or Update a Plan – general plan language resources (Cumulative Lists, QABs, LRMs, etc.)
