The Internal Revenue Service (IRS) has changed the 403(b) restatement process after publishing the Revenue Procedure (Rev. Proc.) 2021-37. The Rev. Proc. sets forth the IRS’ procedures for issuing opinion letters regarding satisfaction in the form of 403(b) pre-approved plans concerning the requirements for the second Remedial Amendment Cycle (Cycle 2).
The Rev. Proc. is modifying the procedures for the 403(b) pre-approved plan program so that it is similar to the procedures applicable under the Internal Revenue Code (IRC) Section 401(a) pre-approved plan program in several ways, including by: simplifying the 403(b) pre-approved plan program by eliminating the distinction between prototype and volume submitter plans; and providing that the IRS will issue a cumulative list of changes in the 403(b) requirements and identify the 403(b) requirements that the IRS will take into account in reviewing 403(b) pre-approved plans submitted for Cycle 2.
Rev. Proc. 2021-37 provides that the on-cycle submission period for Cycle 2 applications will begin on May 2, 2022, and end on May 1, 2023.