IRS officials have indicated the expectation of audit initiatives involving 403(b) plan compliance this summer. 403(b) plans are in a remedial amendment period, meaning that the IRS is giving plan sponsors until March 31, 2020 to adopt a pre-approved plan document and ensure their plans have been operating in accordance with plan provisions. If a plan is found to have operational errors, plan sponsors can utilize the IRS Employee Plans Compliance Resolution System (EPCRS) to correct such errors. Expanded self-correction methods are also now available for certain types of plan document failures and plan loan failures. In addition, the IRS is also allowing for effective date addendums to 403(b) plan documents so that plan sponsors can note any changes to plan administration made after adoption of a written document.
www.planadviser.com; May 10, 2019.
www.planadviser.com; April 5, 2019.