Journal Title Abbreviation
The IRS has released long-awaited guidance expanding the availability of self correction for 403(b) plans and opening the pre-approved plan program. On Dec 12, 2012, the IRS released Rev. Proc. 2013-12, 2013-4 IRB 313, which expanded its self-correction program -- the Employee Plans Compliance Resolution System (EPCRS) -- for 403(b) plans. On 3/28/13, the IRS issued Rev. Proc. 2013-22, 2013-18 IRB 985, opening its 403(b) pre-approved plan program. The broader scope of correction under Rev. Proc. 2013-12 is a welcome relief to 403(b) plan sponsors, who may now take advantage of EPCRS to remedy mistakes and avoid plan disqualification in the same way available to qualified retirement plan sponsors. Rev. Proc. 2013-22 provides a way for an employer to adopt a plan and know that the plan's terms comply with the Code's requirements. While an employer with a sophisticated and intricate 403(b) plan might not be able to take advantage of a generic pre-approved plan, the vast majority of 403(b) plan sponsors should.
25 Taxation of Exempts 12 (2013)