IRS extends important 403(b) retirement plan document deadline
TAX ALERT |
Many 501(c)(3) organizations, churches and public schools sponsor 403(b) plans.
Revenue Procedure 2019-39 provides a system of recurring remedial amendment periods for correcting form defects for both individually designed and pre-approved section 403(b) plans. The due date for such amendments was March 31, 2020.
Many employers have already updated their plan documents ahead of the deadline. However, with the COVID-19 related disruption to the economy, many employers have been unable to review and finalize the proposed updates to their 403(b) retirement plans. Accordingly, the IRS is extending the last day of the initial remedial amendment period for section 403(b) plans from March 31, 2020, to June 30, 2020. Plan sponsors now have until June 30, 2020, to update their pre-approved and individually designed 403(b) plan documents.