The per diem rates are $74 for travel to any high-cost location and $64 for travel to any other location within the continental U.S, in place of the rates indicated in Notice 2020-71. The Remedial Amendment Period permits a plan to be amended retroactively to comply with a change in 403(b) Requirements; however, a plan must be operated in compliance with a change in 403(b) Requirements beginning on the effective date of the change. 2016-37 provides that, for a governmental plan within the meaning of 414(d), the adoption deadline for an interim amendment is: the later of (1) the deadline that would apply under the rules of section 15.04(1), or (2) 90 days after the close of the third regular legislative session of the legislative body with authority to amend the plan that begins on or after the date the amendment becomes effective. 1 In general, capitalized terms are defined in section 4 of this revenue procedure. Some things to keep in mind include:The per diem amount you receive is intended to cover the lodging, meals, and incidentals expenses.You cannot use per diem rates to claim a deduction for your meal expenses.The per diem amount is not intended to cover the full cost of your travel-related expenses. If you are traveling for personal reasons, you cannot claim a per diem.More items 136 (as modified by Rev. See section 23.01. (Compare with modified, below). 2020-49 extends that time period until September 30, 2021. The list of high-cost localities in this notice differs from the list of high-cost localities in section 5 of Notice 2020-71. a. 2013-22 provides that a 403(b) Pre-approved Plan that is intended to be a Retirement Income Account may be maintained only by a Church or convention or association of churches, including an organization described in 414(e)(3)(A), to provide benefits under 403(b) for its employees or their beneficiaries as described in 1.403(b)-9. .01 Notification and effect A Provider may withdraw its application for an Opinion Letter at any time prior to the issuance of the letter by notifying the IRS in writing of the withdrawal at the address provided in section 20. Proc. accounts, Payment, Official websites use .gov 2016-37 is redesignated as section 15.06(2). Proc. The principal author of this revenue procedure is Nathanael DeJonge of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations and Employment Taxes). Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. Additionally, the IRS requests that applications be submitted by thumb or flash drive instead of being submitted as paper files, and that the documents be saved in Microsoft Word or Adobe Acrobat PDF format. 2019-39 to expand the situations in which the plan amendment deadline for discretionary amendments made to a 403(b) Pre-approved Plan may be extended. The Service has determined that it is in the interest of sound tax administration not to issue rulings on such transactions while it reviews their proper tax treatment. 2014-28 and Rev. Employer X decides to no longer be an individually designed plan and adopts a Newly Approved 403(b) Pre-approved Plan during the Cycle 3 Employer Adoption Window. This information is required to enable the Commissioner, Tax Exempt and Government Entities Division of the Internal Revenue Service, to make determinations in connection with compliance with the 403(b) Requirements. 2013-22 provides that the first day of the plans Initial Remedial Amendment Period is the later of January 1, 2010, or the effective date of the plan. Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them. It is published weekly. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. Box 2508 Cincinnati, OH 45201-2508. .19 Section 13 of Rev. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasurys Office of the Assistant Secretary (Enforcement). Section 13 of Rev. If an employer pays per diem allowances that exceed what is deemed substantiated, however, the employer must either treat the excess as taxable wages or require actual substantiation. Proc. Can an ERISA Plan Limit the Time a Claimant Has to File a Lawsuit for Plan Benefits? For a Governmental Plan, Related Employers means all employers that are aggregated with the Adopting Employer in a manner consistent with Notice 89-23, 1989-1 C.B. A Single Document Plan consists of a single plan document offered by a Provider without an adoption agreement. The application must be accompanied by the required user fee that will be provided in the successors to Rev. ) or https:// means youve safely connected to the .gov website. See section 5.13. FICAFederal Insurance Contributions Act. 2013-22 to change the address to which applications for an opinion or advisory letter should be submitted and to insert a user fee that was previously omitted. It further provides that upon issuance of a new opinion or advisory letter for the restated plan, Adopting Employers generally are required to adopt the restated plan. For purposes of this definition, affiliation is determined under 414(b) and (c). If the application form is available when the application is being submitted, the Provider should use the application form. Section 2.13. 92, and Rev. Although sample language is designed for use in plans that use an adoption agreement format, in order to expedite processing, Providers are encouraged to refer to the sample language as a guide in drafting Single Document Plans. If, after the 30-day period, neither action has been taken, the IRS may treat the application as having been withdrawn. The Internal Revenue Service (IRS) separates expenses See section 5.02 of Rev. Accordingly, prior to being amended or restated, the plan must either have timely corrected any Form Defects for which the Remedial Amendment Period is closed or have corrected any plan document failures under the Employee Plans Compliance Resolution System (EPCRS). Tax Notes Research CONTACT US AMERICAS: 400 S. Maple Avenue, Suite 400 Falls Church, VA 22046 United States INTERNATIONAL: Nieuwezijds Voorburgwal 104/108 1012 SG Amsterdam The Netherlands PHONE: 800-955-2444 CONNECT: Tax Analysts is a tax publisher and does not provide tax advice or preparation services. .04 Employer Adoption Window When the review of 403(b) Pre-approved Plan documents for a specific Cycle is close to being completed, the IRS will announce the Employer Adoption Window with respect to that Cycle, which will be an approximately two-year period during which Adopting Employers may adopt Newly Approved 403(b) Pre-approved Plans. 97-29, 1997-1 C.B. or 4.d. industry questions. 2019-39 also provides that, prior to the end of Cycle 2, the IRS will issue guidance providing rules for determining when the limited extension of the Initial Remedial Amendment Period expires with respect to a 403(b) Pre-approved Plan Form Defect first occurring during Cycle 1. Proc. Since the terms of Investment Arrangements under a 403(b) Pre-approved Plan must be incorporated by reference into the plan and those arrangements may not have any provisions that are inconsistent with 403(b), plan terms that are required in a single plan document or the basic plan document and adoption agreement, as applicable, under this section 5 should not create a conflict with the terms of the Investment Arrangements under a properly drafted 403(b) Pre-approved Plan. See sections 8.01 and 8.02 for the effect of any other amendments on reliance on an Opinion Letter by the Adopting Employer. .19 On-Cycle Submission Period See section 4.24. Section 21.02 of Rev. Section 403(b) Pre-approved Plan basic plan document number or Single Document Plan number (Each of the Providers or Mass Submitters basic plan documents or Single Document Plans must be assigned a 2-digit number, starting with 01. Available athttps://www.irs.gov/pub/irs-drop/n-21-52.pdf. WASHINGTON The Internal Revenue Service today issued Notice 2021-63PDF to make clear how the temporary 100% business deduction for food or beverages from restaurants applies to taxpayers properly applying the rules of Revenue Procedure 2019-48PDF for using per diem rates. (7) Pursuant to section 11.03(2)(c), if a Mass Submitter fails to identify a significant modification, the failure will be considered a material misrepresentation, and an Adopting Employer may not rely on an Opinion Letter issued with respect to the plan for the modification or any other provision of the plan that may be affected by the modification. (2) The IRS reserves the right at any time to request from a Provider a list of the Eligible Employers that have adopted or are expected to adopt the Providers plans, including the employers business addresses and employer identification numbers. For this purpose, a plan is a written defined contribution plan that, in both form and operation, satisfies the requirements of the final regulations under 403(b).4. governments, Explore our .01 This revenue procedure significantly modifies the procedures set forth in Rev. .01 Provisions required in all 403(b) Pre-approved Plans Each 403(b) Pre-approved Plan must comply with the requirements set forth in sections 5.03 through 5.17. 1. The IRS may, in appropriate circumstances, request documentation of the assumption of sponsorship prior to issuing an Opinion Letter to the new entity. However, the rates vary depending on location. The IRS began accepting Cycle 1 applications for opinion and advisory letters regarding the acceptability under 403(b) of the form of prototype plans and volume submitter plans, respectively, on June 28, 2013. 2019-39 provides that the initial amendment must be adopted by the later of (a) the expiration of the Initial Remedial Amendment Period (that is, June 30, 2020), or (b) the end of the calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan. Proc. Taxpayers using the rates and list of high-cost localities provided in this notice must comply with Rev. However, an Adopting Employer of a Standardized Plan that adds language to satisfy the requirements of 415 due to the required aggregation of plans may obtain reliance with regard to 415 by applying for a determination letter using Form 5307 (as updated). See section 11 for rules relating to Mass Submitter plans. Proc. 944, and Rev. Proc. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series. For example, if the forms of annuity benefit available under a plan are described in Investment Arrangements under the plan, the terms of the Investment Arrangements must satisfy, if applicable to the plan, the joint and survivor annuity requirements of ERISA 205 and any applicable related rules, such as rules relating to transfers of benefits that are subject to the joint and survivor annuity requirement, and may not have any provisions that are inconsistent with 403(b). Per Diem Rates Maximum travel per diem rates for current and prior years for the continental United States are available at the General Service Administration (GSA) Website: Per Diem Rates Any area that is not specifically listed is assigned the standard CONUS (Continental United States) per diem rate. Rev. (2) The Cumulative List for a Cycle will identify changes in the 403(b) Requirements that will be taken into account with respect to the plan document submitted to the IRS for the Cycle and that were not taken into account by the IRS in its review during any prior Cycle. .13 Investment Arrangement An Investment Arrangement is a funding arrangement under a 403(b) plan. (2) An Adopting Employer may not rely on an Opinion Letter if the Adopting Employers adoption of a 403(b) Pre-approved Plan precedes the issuance of an Opinion Letter for the plan. If an application is withdrawn, the case may be referred to IRS Employee Plans Examinations. 26 CFR 601.601: Rules and Regulations. [9] According to these regulations, the first and last days of travel are paid 75% of the daily General Services Administration, PDTATAC, or DOS rate, while all Part IV.Items of General Interest. For FY 2021, the standard Continental United States (CONUS) lodging rate will remain unchanged at $96, and 319 locations will receive a maximum lodging allowance higher than the standard allowance. The Mass Submitter must also immediately notify any affected minor modifier adopter, and the minor modifier adopter must notify all Adopting Employers of any of its 403(b) Pre-approved Plans affected by the failure and the notification must explain the effect on the reliance by Adopting Employers on the Opinion Letter. 2019-39 provides a limited extension of the Initial Remedial Amendment Period with respect to certain 403(b) Pre-approved Plan Form Defects first occurring during Cycle 1, so that the Initial Remedial Amendment Period will end no earlier than the end of Cycle 2. .04 Section 15.06(1)(a) of Rev. Failure to comply with these requirements may result in the loss of eligibility to offer 403(b) Pre-approved Plans and the revocation of Opinion Letters that have been issued to the Provider. An Adopting Employer that fails to adopt a newly approved version of a 403(b) Pre-approved Plan by the end of any Employer Adoption Window will no longer be treated as maintaining a 403(b) Pre-approved Plan. The On-Cycle Submission Period for a Cycle may begin after the start of that Cycle. 2013-22, employees of a Qualified Church-Controlled Organization (QCCO) or a non-QCCO may not participate in a 403(b) Pre-approved Plan that is intended to be a Retirement Income Account. Looking for U.S. government information and services? .01 Opinion Letters Applications for an Opinion Letter, including applications filed by Mass Submitters, should be sent to: Internal Revenue Service Attn: Pre-Approved Plans Coordinator Room 6-403, Group 7521 P.O. In addition, an Opinion Letter will not be issued under this revenue procedure for prototype plans intended to meet the requirements for individual retirement arrangements under 408. In this case, (1) the basic plan document must include provisions reflecting the 403(b) Requirements, including 1.403(b)-6, and 1.72(p)-1, and (2) the basic plan document and adoption agreement, as completed by the Adopting Employer, must provide that, to the extent permitted by the terms governing the applicable Investment Arrangement, participant loans are available. 575), and Rev. (1) Beginning of Remedial Amendment Period Under this system, unless otherwise specified in guidance published in the Internal Revenue Bulletin, a Remedial Amendment Period for a Form Defect in a 403(b) individually designed plan first occurring after the Initial Remedial Amendment Period, begins: (a) in the case of a provision of, or absence of a provision from, a new plan, the date the plan is put into effect; (b) in the case of an amendment to an existing plan (other than a Form Defect that is related to a change in 403(b) Requirements, or that is integral to such a change), the date the plan amendment is adopted or put into effect, whichever is earlier; (c) in the case of a provision that fails to satisfy the 403(b) Requirements by reason of a change in those requirements, the date on which the change becomes effective with respect to the plan; or. 2016-37 (that is, a disqualifying provision that results in the failure of the plan to satisfy the qualification requirements of the Code by reason of a change in those requirements that is effective after December 31, 2001, or that is integral to such disqualifying provision). The notification to each Adopting Employer must explain how the revocation affects any reliance an Adopting Employer has on the applicable Opinion Letter and on any determination letter issued. The Provider must also inform each Adopting Employer that, notwithstanding the Providers discontinuance of its sponsorship, if the Adopting Employer adopts another 403(b) Pre-approved Plan, retroactive to the date of the discontinued sponsorship, by the end of the calendar year following the calendar year in which the Provider discontinues sponsorship of the plan, then the Adopting Employers plan will be treated as though it had continued to be a 403(b) Pre-approved Plan, and not converted to an individually designed plan (and the Adopting Employer will not be treated as having adopted the new 403(b) Pre-approved Plan after the end of an Employer Adoption Window, if applicable). The following abbreviations in current use and formerly used will appear in material published in the Bulletin. The application must be sent to the address provided in section 20. .06 Use of same basic plan document by multiple plans; separate applications required for different categories of Adoption Agreement Plans. 2013-22, as modified by Rev. See section 4.26. View sitemap, FederalPay is a free public resource site and is not affiliated with the United States government or any Government agency. .19 Provisions applicable to a 403(b) Pre-approved Plan intended to be a Retirement Income Account. The optional provisions may be arranged as separate optional articles or sections within a 403(b) Pre-approved Plan or as separate optional provisions within a single article or section. The following localities have a federal per diem rate of $249 or more, and are high-cost localities for the specified portion of the calendar year. The rate for any locality of travel within or outside the U.S. for the incidental expenses only deduction is $5 per day. Also included in this part are Bank Secrecy Act Administrative Rulings. 2014-28 modifies Rev. (Also Part I, 4941.). 2016-37. 2019-39, 2019-42 I.R.B. (3) Additionally, the Adopting Employer of a Standardized Plan may not rely on the Opinion Letter for the Standardized Plan with respect to: (a) whether the timing of any amendment to the Adopting Employers plan (or series of amendments) satisfies the nondiscrimination requirements of 1.401(a)(4)-5(a), except with respect to plan amendments granting past service that meet the safe harbor described in 1.401(a)(4)-5(a)(3) and are not part of a pattern of amendments that significantly discriminates in favor of highly compensated employees, or (b) whether the Adopting Employers plan satisfies the effective availability requirement of 1.401(a)(4)-4(c) with respect to any benefit, right, or feature. Federal per diem rates are set by the General Services Administration (GSA) and are used by all government employees, as well as many private-sector employees who travel for their companies. In addition, the IRS reserves the right to require changes after the notification is sent. .01 In general A Cycle 1 403(b) Pre-approved Plan that is intended to be a Retirement Income Account may be amended by a Provider, a Mass Submitter, or an Adopting Employer to permit the participation of an employee described in 414(e)(3)(B), retroactive to the beginning of Cycle 2, July 1, 2020. See section 8.03(6) regarding limitations on reliance. (4) Under the plan, allocations are determined on the basis of total compensation. The estimated frequency of responses is occasional. Proc. Proc. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. 775. Proc. Proc. 2019-48 (or successor). Proc. Proc. ELIGIBILITY FOR THE CYCLE SYSTEM, SECTION 8. 2016-37 and Rev. 2016-37, which is applicable to a governmental plan within the meaning of 414(d), and which is determined by reference to the interim amendment deadline for a plan that is not a governmental plan, is modified. Such an application may be filed at the time of the assumption of plan sponsorship by the new Provider, and the filing is not limited to the applicable On-Cycle Submission Period. .05 Eligible Employer An Eligible Employer is an employer described in 403(b)(1)(A). .02 Section 403(b) plan that is a Governmental Plan For a Governmental Plan, a Provider (or the Adopting Employer, if applicable) is considered to have adopted an interim amendment described in section 9.02 timely if the plan amendment is adopted by the later of (1) the end of the second calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan, or (2) ninety days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins on or after the date the plan amendment becomes effective. Providers may apply for an Opinion Letter for Cycle 2 after this On-Cycle Submission Period, but these filings generally will be considered off-cycle. See section 12 regarding IRS review of off-cycle filings. .17 Section 11.04 of Rev. (a) A Minor Modification is a minor change to an otherwise word-for-word identical 403(b) Pre-approved Plan of the Mass Submitter that the IRS determines does not require an in-depth IRS technical review. (Employees can no longer deduct their unreimbursed expenses due to the suspension of miscellaneous itemized deductions by the Tax Cuts and Jobs Act, so these other rates are effectively unavailable to them.) .16 Section 11.03 of Rev. .01 Rev. 136, as modified by Rev. Every 403(b) Pre-approved Plan must therefore incorporate by reference the terms of the Investment Arrangements under the plan. Under the high-low method, the per diem rate for all 647, as modified by Rev. If 4.a. 2020-21, 2020-22 I.R.B. You may use the dropdown box below to select a country. corporations, For Proc. Thus, a separate 403(b) Pre-approved Plan is required for a plan that is intended to constitute a Retirement Income Account. Proc. However, the plan may deny an allocation to an employee who is eligible to participate if the employee terminates service during the plan year with not more than 500 hours of service and is not an active employee on the last day of the plan year. Join the our free mailing list to receive an update when 2024 rates are available. Proc. Failure to comply with these requirements may result in the loss of eligibility to offer 403(b) Pre-approved Plans and the revocation of an Opinion Letter that has been issued to the Provider. Integrated software .10 Effect of failure to disclose material fact or to accurately provide information A failure to disclose to the IRS a material fact, a misrepresentation of a material fact in the application, or the failure to accurately provide any of the information called for on any form or Appendix A required by this revenue procedure may result in the inability of Adopting Employers to rely on the Opinion Letter (for example, if there is a failure to disclose a material fact, the IRS may revoke the Opinion Letter due to the failure). .03 Timing of issuance of Opinion Letters The IRS intends to issue Opinion Letters for a Cycle to Mass Submitters and Providers at approximately the same time within the Cycle for all applications submitted during the Cycles On-Cycle Submission Period (other than an application for a plan that is a Minor Modification of a Mass Submitter plan). Proc. The principal author of this revenue procedure is Patrick Gutierrez of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). environment open to Thomson Reuters customers only. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. 2017-18, 2017-5 I.R.B. In particular, the plan language must coordinate the application of the 415 limits to all the Standardized Plans of the Adopting Employer and its Related Employers so that, if the only 403(b) plans maintained by the Adopting Employer and its Related Employers are Standardized Plans, the plans will satisfy 415(c) and 1.415(f)-1(a)(3) without requiring the addition of overriding plan language. Proc. Each 403(b) Pre-approved Plan that is a Governmental Plan must credit all service with any employer aggregated with the Adopting Employer in a manner consistent with Notice 89-23, as service with the Adopting Employer maintaining the plan. .07 Section 21.03 of Rev. Proc. 2021-4, 2021-1 I.R.B. The End Date of your trip can not occur before the Start Date. An extension of the 30-day time limit will be granted only for good cause. Previously, the IRS issued Notice 2021-25PDF providing guidance under the Taxpayer Certainty and Disaster Relief Act of 2020, which added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. They may not be relied upon as authoritative interpretations. Proc. FY 2023 Per Diem Highlights. The IRS strongly encourages Providers to take advantage of this electronic submission format. .20 Opinion Letter An Opinion Letter is a written statement issued by the IRS to a Provider or Mass Submitter that the form of a 403(b) Pre-approved Plan satisfies the 403(b) Requirements. Off-cycle applications for a Cycle that are submitted during or after that Cycles Employer Adoption Window will not be accepted. Section 3 of Rev. .14 The Department of the Treasury (Treasury Department) and the IRS expect to continue to update this Opinion Letter program revenue procedure, in whole or in part, from time to time, including providing further improvements based on comments received. management, More for accounting .04 This revenue procedure extends the plan amendment deadline for making interim amendments with respect to a change in 403(b) Requirements, for most plans, until the end of the second calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan. Proc. 2021-3 sets forth a list of those areas in which rulings or determination letters will not be issued. Proc. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. .06 IRS discretion The IRS may, in its discretion, decline to issue an Opinion Letter for other types of plans or issues not described in this section. A lock ( .02 The heading of section 15.06 of Rev. Proc. The Adopting Employer will have until the end of the Cycle 2 Employer Adoption Window to adopt a Cycle 2 Newly Approved 403(b) Pre-approved Plan that permits the participation of an employee described in 414(e)(3)(B) and that includes the nondiscrimination requirements that apply to any employee other than an employee of a QCCO or Church. See Rev. 2019-39, this section provides rules for determining the expiration date of the Remedial Amendment Period for a Form Defect first occurring after the expiration of the Initial Remedial Amendment Period (that is, after June 30, 2020) in a 403(b) Pre-approved Plan. Rev. Proc. Entering the first letter of the country name will jump to that portion of the listing. .02 Submission of Opinion Letter applications Rev. If there nevertheless is a conflict, the terms of the single plan document or the basic plan document and adoption agreement, as applicable, must control. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legislation and Related Committee Reports. 2013-22 provides, in general, that the form of a plan will be treated as satisfying the requirements of the 403(b) regulations as of the first day of the plans Initial Remedial Amendment Period if (1) on or before that day, the Eligible Employer adopts a written plan that is intended to satisfy the 403(b) Requirements, and (2) on or before the last day of the Initial Remedial Amendment Period, the employer amends the plan to the extent necessary to correct any Form Defects retroactive to the first day of the Initial Remedial Amendment Period. Proc. Within 30 days following the date the notification is provided, either the Mass Submitter may revise the plan so that the modifications are minor and resubmit the revised plan, or the Provider may submit the application form (or Appendix A) and an additional user fee in an amount equal to the difference between a non-Mass Submitter plan application user fee and a minor modifier adopter application user fee. .11 Requirements regarding dated signatures and adoption agreement provisions Each 403(b) Pre-approved Plan must include an Adopting Employer signature and date line.