Does your organization sponsor a 403(b) Tax Sheltered Annuity Plan? Did you know that your organization must have a written plan document? Organizations that can sponsor 403(b) Plans include 501(c)(3) tax-exempt organizations, schools, hospitals, churches, and some governmental entities.
Your organization can satisfy the written plan requirement by adopting a 403(b) pre-approved plan instead of an individually designed plan. Pre-approved plans offer flexibility, assurance that the plan meets the legal requirements, and are cost-effective.
If your organization already has a written plan, it’s important to
- Operate the plan according to its terms, and
- Keep the plan current with law changes.
According to IRS Revenue Procedure 2017-18, your organization has until 3/31/2020 to update your plan document to bring it into compliance with current law. This is called the “Remedial Amendment Period”. During the Remedial Amendment Period, adopting a pre-approved 403(b) Plan allows your organization to retroactively correct defects in the written form of the plan back to the later of the plan’s effective date or 1/1/2010.
If your organization did not adopt a written plan before 12/31/2009, the IRS has available the 403(b) Voluntary Program Submission Kit.
Contact us today to update your organization’s 403(b) Plan document using a pre-approved plan.