Temporary Reprieve on 403(b) Document Requirement
The IRS has issued Notice 2009-3, which grants temporary relief to sponsors of 403(b) plans. The Final Regulations were published in July of 2007. Under the regulations, a plan document was required to by in place by January 1, 2009. The deadline has been extended to December 31, 2009.
This relief is for the plan document requirement only. All the operational changes under the Final Regulations are still required on a “good faith” basis. Further, the relief is only for 2009. It does not excuse operational defects that occurred either before or after 2009.
The IRS will consider Plan Sponsors as meeting the 403(b) requirements) if:
- The plan operates under a reasonable interpretation of the Final Regulations during 2009.
- Best efforts to retroactively correct any operational failures occurring during 2009.
- All the other changes required by the Final Regulations are adopted, i.e. the establishment of a Pension Committee, meeting fiduciary responsibilities, expanded 5500 and audit requirements.
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