close
Share with your friends

Rev. Proc. 2019-39: Recurring remedial amendment periods for correcting section 403(b) plans

Rev. Proc. 2019-39: Recurring remedial amendment period

The IRS today released an advance version of Rev. Proc. 2019-39 providing a system of recurring remedial amendment periods for correcting “form defects” in a section 403(b) plan first occurring after March 31, 2020.

1000

Related content

Earlier IRS guidance—Rev. Proc. 2013-22 as modified and clarified by subsequent revenue procedures including Rev. Proc. 2017-18—established a remedial amendment period that permits an “eligible employer” to retroactively correct form defects in its written section 403(b) plan by timely adopting a section 403(b) “pre-approved plan” or, otherwise, by timely amending its section 403(b) individually designed plan. Rev. Proc. 2017-18 provided that March 31, 2020, was the last day of this initial remedial amendment period. Also, Rev. Proc. 2013-22 indicated the IRS expected to issue future guidance to require the restatement of section 403(b) pre-approved plans every six years.

Rev. Proc. 2019-39 [PDF 142 KB] (31 pages) released today sets forth a system of recurring remedial amendment periods for correcting form defects in section 403(b) plans—both for individually designed plans and pre-approved plans—first occurring after the initial remedial amendment period ends on March 31, 2020. Today’s revenue procedure also:

  • Provides a limited extension of the initial remedial amendment period for certain form defects
  • Establishes a system of section 403(b) pre-approved plan cycles under which a section 403(b) pre-approved plan sponsor may submit a proposed section 403(b) pre-approved plan for review and approval by the IRS and that once approved, the section 403(b) pre-approved plan may be made available for adoption by eligible employers
  • Provides deadlines for the adoption of plan amendments for section 403(b) individually designed plans and section 403(b) pre-approved plans
  • Announces that the IRS and Treasury Department intend to issue additional guidance, prior to the date that section 403(b) pre-approved plans may next be submitted for review, relating to the system of recurring remedial amendment periods and the system of recurring section 403(b) pre-approved plan cycles

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal