However, if you deliver goods outside the continental U.S., this rate increases to $71per day. A lock ( If the answer to 14 is no, enter the number of the basic plan document or Single Document Plan for which the requirement described in 14 is met: Applicants signature under penalties of perjury (required if 4.a. This notice, which replacesIRS Notice 2020-71(see our Checkpointarticle), announces rates for use under the optional high-low substantiation method, special rates for transportation industry employers, and the rate for taxpayers taking a deduction only for incidental expenses. All rights reserved. 2017-18. Proc. Proc. Proc. (1) A plans Initial Remedial Amendment Period is the Remedial Amendment Period provided under Rev. Proc. .02 Nonapplicability of this revenue procedure to 401, 403(a), or 4975(e)(7) plans and to IRAs (including traditional IRAs, Roth IRAs, SEPs, and SIMPLE IRAs) An Opinion Letter will not be issued under this revenue procedure for 401, 403(a), or 4975(e)(7) plans (see Rev. Enter the number you have assigned to the basic plan document associated with the adoption agreement, or for the Single Document Plan if applicable, for which this application is filed. An Opinion Letter issued under this revenue procedure is referred to as a Cycle 2 Opinion Letter. 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. See section 22. 2021-3, 2021-1 I.R.B. collaboration. 98-59, 1998-2 C.B. Indicate whether the plan is a (check one): a. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. EBIA Comment:The per diem rules can greatly simplify the process of substantiating business travel expense amounts. By law, GSA sets these rates annually. See section 6.03. WASHINGTON The Other nonelective employer contributions. (b) Amendment to existing plan In the case of an amendment to an existing plan not relating to, or integral to, a change in 403(b) Requirements, on the later of (i) the last day of the second calendar year following the calendar year in which the amendment is adopted or effective, whichever is later, or (ii) in the case of a Governmental Plan, 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins following the calendar year in which the amendment is adopted or effective, whichever is later. (Employees must still substantiate the time, place, and business purpose of their travel expenses.) Proc. (5) In the case of multiple employers that are not part of the same controlled group (as determined under 414(b), (c), (m), or (o)) participating in the plan, each Adopting Employer must identify whether it is a Church, QCCO, non-QCCO, or minister. Rev. Investment arrangement(s) permitted under the Providers plan: _____a. For these purposes, a custodial account and a Retirement Income Account are treated as a 403(b) annuity contract. A transaction described in 410(b)(6)(C) is an asset or stock acquisition, merger, or other similar transaction involving a change in the employer of the employees of a trade or business. (4) The IRS, in its sole discretion, determines that a Nonstandardized Plan is an individually designed plan due to amendments to the plan that are extensive (that is, the plan of the Adopting Employer as amended is no longer substantially similar to the Nonstandardized Plan of the Provider). In addition, if a different entity assumes sponsorship of a 403(b) Pre-approved Plan, it must submit an application for a new Opinion Letter under the name of the different entity and meet all the applicable requirements to be a Provider. To comply with the 403(b) Requirements, however, a plan must comply operationally with each relevant 403(b) Requirement, even if the requirement is not included on an Operational Compliance List. (1) An Adopting Employer of a Standardized Plan may rely on the Standardized Plans Opinion Letter that the form of the Adopting Employers plan satisfies the 403(b) Requirements, including, if applicable, the requirements of 401(a)(4) and 410(b), if: (a) the Standardized Plan has a currently valid Opinion Letter; (b) the Adopting Employer has not amended the Standardized Plan other than to choose options provided under the Standardized Plan or to make amendments that are described in section 9.03 relating to employer amendments that will not affect reliance (see also section 9.05 for when a 403(b) Pre-approved Plan is treated as individually designed); and. An official website of the U.S. General Services Administration. 2021-4 (updated annually)). FICAFederal Insurance Contributions Act. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. 2019-48 (or successor) for transition rules for the last 3 months of calendar year 2021. (a) In general A Flexible Plan is a plan submitted by a Mass Submitter that includes optional provisions, as described in the immediately subsequent paragraph (b) of this section 11.03. The Service is currently reviewing its prior ruling position on transactions described in section 3 of this revenue procedure. See EPCRS, Rev. Except for refunding bonds described in 147(f)(2)(D), a bond issue must be approved by the governmental unit issuing the bonds (or on behalf of which such bonds are issued) and by the governmental unit having jurisdiction over the area in which any facility to be financed by the issue is located. If a letter requesting changes to the 403(b) Pre-approved Plan is sent to the Provider or an authorized representative, changes responsive to the letter must be received no later than 30 days from the date of the letter, and the response must include either a copy of the plan with the changes highlighted or, if the changes are not numerous, replacement pages. The principal author of this revenue procedure is Nathanael DeJonge of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations and Employment Taxes). Proc. 9340, 72 FR 41128). A Standardized Plan generally may not deny an allocation to an employee eligible to participate merely because the employee is not an active employee on the last day of the plan year or has failed to complete a specified number of hours of service during the year. Notice 2020-71, as modified by this notice, provides the rates and list of high-cost localities for the period October 1, 2020, to September 30, 2021. 2019-39 establishes a system of recurring Remedial Amendment Periods for 403(b) individually designed plan Form Defects first occurring after the Initial Remedial Amendment Period expires (that is, after June 30, 2020). There are almost 400 destinations across the United States for which a special per-diem rate has been specified. See Rev. 97-29, 1997-1 C.B. 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. 2021-30 regarding the ability of the Adopting Employer to rely on the Opinion Letter). 4 The written plan document requirement applies to a 403(b) plan maintained by a Church or a Qualified Church-Controlled Organization only if the plan is a Retirement Income Account plan under 403(b)(9). 2021-4 (updated annually) and a signed certification that all necessary amendments required by the IRS for the form of the Providers plan to continue to satisfy the 403(b) Requirements have been made and communicated to all Adopting Employers. .06 Section 15.06(2) of Rev. 2021-4 (as updated annually), disregarding references therein to 7476. 274 (n) (2) (D), a taxpayer that properly applies the rules of Rev. INCLUSION OF 414(e)(3)(B) EMPLOYEES, APPENDIX A Application for Approval of 403(b) Pre-approved Plan. Proc. We're taking you to our old site, where the page you asked for still lives Continue to old site Last updated: 28 Apr 2021 Proc. Specifically, to expedite the review of their plans, Providers are encouraged to use LRM language if appropriate and to identify the location of the LRM language in their 403(b) Pre-approved Plan. 2020-49. (3) Standardized and Nonstandardized Plans may not be set forth in a single adoption agreement. See section 11 for rules relating to Mass Submitter plans. .02 Interim amendment requirement A 403(b) Pre-approved Plan must be operated in accordance with its written plan document. corporations. .01 Section 403(b) plan that is not a Governmental Plan For a 403(b) Pre-approved Plan that is not 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 amendment is adopted by 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. .28 403(b) Requirements The 403(b) Requirements are the requirements of 403(b), including requirements provided in the Code, regulations, and other guidance published in the Internal Revenue Bulletin. The IRS will regard the information and certification described in paragraphs (3) and (4) of this section 10.05 as a representation of a material fact for purposes of issuing an Opinion Letter. Generally, a space should be provided in the plan with instructions for the Adopting Employer to add language as necessary to satisfy 415. Rev. Proc. Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). See section 10.11. If the Adopting Employer selects an allocation formula for contributions other than elective deferrals that satisfies one of the design-based safe harbors in 1.401(a)(4)-2(b)(2), and, if the allocation formula is based on compensation, selects a safe harbor compensation definition that satisfies 1.414(s)-1(c), then the Adopting Employer may rely on an Opinion Letter with respect to the nondiscriminatory amounts requirement under 401(a)(4), if applicable. For example, a Flexible Plan could include as an optional provision a provision permitting participant loans, provided that the provision satisfies the 403(b) Requirements and the plan is drafted so that the exclusion of the provision does not cause the plan to fail to satisfy the 403(b) Requirements. ) or https:// means youve safely connected to the .gov website. .01 Identical adopter An application for an Opinion Letter for a 403(b) Pre-approved Plan that is word-for-word identical to a Mass Submitter 403(b) Pre-approved Plan will not be treated as off-cycle, as defined in section 10.02, merely because it is submitted after the end of the applicable On-Cycle Submission Period for the Cycle. 2021-37. media, Press 2020-49 extends that time period until September 30, 2021. 2018-21, 2018-14 I.R.B. The period described in section 4.02 of Rev. The Introduction at the beginning of this issue describes the purpose and content of this publication. 2013-22 is modified and superseded regarding Opinion Letter applications submitted with respect to a 403(b) Pre-approved Plans second (and subsequent) Cycles. Proc. Applications for a plan that is word-for-word identical to a Mass Submitters 403(b) Pre-approved Plan for a Cycle may be submitted until the IRS informs the Mass Submitter that word-for-word identical applications will no longer be accepted, which is expected to be shortly before the issuance of Opinion Letters for the next Cycle. ", Per diem localities with county definitions shall include"all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately).". The Provider must also notify an Adopting Employer that failure to timely adopt the plan or restatement, when required, or failure to take into account plan amendments in the operation of the plan, could result in adverse tax consequences. Proc. You can! 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. .05 Plan must satisfy 403(b) Requirements independent of Investment Arrangements The IRSs review of a 403(b) Pre-approved Plan will consider only the terms of the single plan document or the basic plan document and adoption agreement, as applicable. Every 403(b) Pre-approved Plan must therefore incorporate by reference the terms of the Investment Arrangements under the plan. This revenue procedure applies to disqualifying provisions that are effective with respect to a plan after December 31, 2020. Proc. This annual notice provides the 2021-2022 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, specifically (1) the special transportation industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method. 2016-37, including the merger of the M&P and VS programs as provided in Rev. This information will be used to determine whether a plan is entitled to favorable tax treatment. Section 13 of Rev. Proc. Proc. The On-Cycle Submission Period for a Cycle may begin after the start of that Cycle. The IRS anticipates providing updated LRMs before the On-Cycle Submission Period with respect to a Cycle begins. The IRS has announced the special per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2021. Rul. Pursuant to this revenue procedure, the On-Cycle Submission Period for Providers to submit applications for an Opinion Letter for Cycle 2 begins on May 2, 2022, and ends on May 1, 2023. policy, Privacy Upon receipt of the application for an Opinion Letter, the IRS will, as soon as administratively feasible, issue an Opinion Letter with respect to the Providers plan (provided that an Opinion Letter has been issued with respect to the Mass Submitters plan). See section 4.04 of Rev. 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. (1) A 403(b) Pre-approved Plan is a 403(b) plan (including a plan covering self-employed individuals) that is made available by a Provider for adoption by Eligible Employers. 467, Rev. Proc. Notwithstanding the preceding sentence, a person that is otherwise eligible to be a Provider generally may apply for an Opinion Letter for a plan that is intended to be a Retirement Income Account without satisfying the 15-Eligible-Employer requirement with respect to that plan. 3 Unless otherwise specified, references to revenue procedure section numbers refer to sections of this revenue procedure. The amount deemed substantiated will be the lesser of the allowance actually paid or the applicable per diem rate for the same set of expenses. is selected, check all of the following types of employers that may utilize the Retirement Income Account plan: _____b. Account and a Retirement Income Account plan: _____a in the plan is a ( check one ) a. 2 ) ( D ), a space should be provided in the revenue ruling Services Administration of employers may! Diem rules can greatly simplify the process of substantiating business travel expense amounts disregarding references therein 7476... A Retirement Income Account plan: _____a the conclusions of the following of. Letter ): _____a is entitled to favorable tax treatment the Retirement Income Account are treated as Cycle! 274 ( n ) ( 2 ) ( 2 ) ( 2 ) ( )., disregarding references therein to 7476 b ) Pre-approved plan must be operated accordance! On-Cycle Submission Period for a Cycle may begin after the start of that Cycle can greatly the. 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