IRS Issues Opinion Letter Program for Pre-Approved 403(b) Plan Documents
The IRS issued Revenue Procedure 2013-22 which provides a long-awaited opinion letter program for prototype and volume submitter 403(b) plans. The IRS will begin accepting applications under the program on June 28, 2013. Although employers that sponsor 403(b) plans cannot directly apply for a favorable opinion letter on their 403(b) plan document, employers can take advantage of this new program by adopting (or continuing to use) a 403(b) prototype or volume submitter plan document that receives a favorable opinion letter. We expect that most providers of 403(b) prototype plans will use the program and thereby provide their employer clients with an assurance that their plan document complies with all applicable requirements of Code Section 403(b). Unfortunately, plan sponsors with individually designed plans are not yet eligible to use this program.