IRS issues 403(b) prototype plans and sample language
The Internal Revenue Service (IRS) has issued a draft revenue procedure which establishes a pre-approval program of prototype plans under 403(b). Specifically, under the prototype plan program, a vendor who expects a plan to be adopted by at least 30 employers may submit the plan to the IRS for an opinion letter. Employers, including school districts, who adopt 403(b) prototype plans will generally have assurance that the form of the plan meets the 403(b) requirements. The IRS has also issued draft sample language for the prototype plan. According to the new Revenue Procedure 2009-34, Revenue Procedure 2007-71, which contains model plan language for school districts, is not modified by the new draft revenue procedure. However, the draft sample language for the prototype plan contains additional provisions not included in the model plan language for school districts. Comments on the draft revenue procedure and the draft sample language for the prototype plan are due by June 1, 2009.
Revenue Procedure 2009-34
Sample Plan Language
Employee Plans Now
Revenue Procedure 2007-71