There are almost 400 destinations across the United States for which a special per-diem rate has been specified. The following abbreviations in current use and formerly used will appear in material published in the Bulletin. Proc. Proc. (5) If the plan provides for contributions other than elective deferrals and matching contributions, the plan must satisfy one of the design-based safe harbors described in 1.401(a)(4)-2(b)(2) with respect to the contributions. Per Diem Rates Rates are set by fiscal year, effective October 1 each year. consulting, Products & Use the rate for the area where your employee spends the night. Within 30 days following the date the notification is provided, either the Mass Submitter may revise the plan so that the modifications are minor and resubmit the revised plan, or the Provider may submit the application form (or Appendix A) and an additional user fee in an amount equal to the difference between a non-Mass Submitter plan application user fee and a minor modifier adopter application user fee. Per diem rates are on the Internet: Foreign per diem rates Per diem rates for areas outside the continental United States ( OCONUS ), such as Alaska, Hawaii, Puerto Rico .16 Separate 403(b) Pre-approved Plan for Retirement Income Account A single 403(b) Pre-approved Plan may not be used for both a 403(b) Pre-approved Plan that is a Retirement Income Account and a 403(b) Pre-approved Plan that is not a Retirement Income Account. Proc. 2020-21 is modified as follows: .02 Time period. FISCForeign International Sales Company. .09 Adopting Employer modification to satisfy 415 Each 403(b) Pre-approved Plan must provide that plan provisions may be amended by the Adopting Employer to the extent necessary to satisfy 415 because of the required aggregation of multiple plans under that section. Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. The IRS will not issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d) of the Code. 2021-4, 2021-1 I.R.B. The IRS has announced the special per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2021. A Flexible Plan, as defined in section 11.03(1), that is offered by a Provider is considered a word-for-word identical plan. Except for refunding bonds described in 147(f)(2)(D), a bond issue must be approved by the governmental unit issuing the bonds (or on behalf of which such bonds are issued) and by the governmental unit having jurisdiction over the area in which any facility to be financed by the issue is located. Please try again later. Proc. In the continental United States (CONUS), domestic per diem rates are established by the U.S. General Services Administration. See section 8.04 for situations in which an Adopting Employer may obtain a determination letter using Form 5307 (as updated). .11 Requirements regarding dated signatures and adoption agreement provisions Each 403(b) Pre-approved Plan must include an Adopting Employer signature and date line. Proc. .01 Section 15.04(1) of Rev. (a) In general A Flexible Plan is a plan submitted by a Mass Submitter that includes optional provisions, as described in the immediately subsequent paragraph (b) of this section 11.03. The weekly Internal Revenue Bulletins are available at www.irs.gov/irb/. (3) Additionally, the Adopting Employer of a Standardized Plan may not rely on the Opinion Letter for the Standardized Plan with respect to: (a) whether the timing of any amendment to the Adopting Employers plan (or series of amendments) satisfies the nondiscrimination requirements of 1.401(a)(4)-5(a), except with respect to plan amendments granting past service that meet the safe harbor described in 1.401(a)(4)-5(a)(3) and are not part of a pattern of amendments that significantly discriminates in favor of highly compensated employees, or (b) whether the Adopting Employers plan satisfies the effective availability requirement of 1.401(a)(4)-4(c) with respect to any benefit, right, or feature. 2021-30, 2021-31 I.R.B. 2016-37, 2016-29 I.R.B. (4) the absence from a plan of a provision required by a change to the 403(b) Requirements (either by statute, or in regulations or other guidance published in the Internal Revenue Bulletin) or integral to the change. .08 Section 21.05 of Rev. 2016-37 sets forth the deadline for the timely adoption of an interim amendment to a qualified pre-approved plan. See section 9 for the effect of certain plan amendments on a plans eligibility for the Cycle system. Proc. Proc. DISCDomestic International Sales Corporation. The Treasury Department and the IRS will publish for public availability any comment submitted electronically, and to the extent practicable on paper, to its public docket. industry questions. 2019-39 sets forth plan amendment deadlines for interim amendments made to a 403(b) Pre-approved Plan. Changes to the information in the required appendix will not affect the Adopting Employers ability to rely on an Opinion Letter. The high-low M&IE rates increase to $74 (from $71) for travel to high-cost locations and to $64 (from $60) for travel to other locations. .11 Rev. Pursuant to section 9.05(1), beginning on the first day of that plan year, Employer Xs plan is treated as an individually designed plan. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. The signature requirement may be satisfied by an electronic signature that reliably authenticates and verifies the adoption of the adoption agreement or single plan document, or the restatement, amendment, or modification thereof, by the Adopting Employer. In that case, the plan number given to the basic plan document must remain the same as in the prior submission. .10 Effect of failure to disclose material fact or to accurately provide information A failure to disclose to the IRS a material fact, a misrepresentation of a material fact in the application, or the failure to accurately provide any of the information called for on any form or Appendix A required by this revenue procedure may result in the inability of Adopting Employers to rely on the Opinion Letter (for example, if there is a failure to disclose a material fact, the IRS may revoke the Opinion Letter due to the failure). For further information regarding this notice contact James Liechty at (202) 317-7005 (not a toll-free number). However, if you deliver goods outside the continental U.S., this rate increases to $71per day. .13 The expiration date of the limited extension of the Initial Remedial Amendment Period for certain Form Defects is provided. Per-diems are fixed amounts to be used for lodging, meals, and incidental expenses when traveling on official releases, Your If there nevertheless is a conflict, the terms of the single plan document or the basic plan document and adoption agreement, as applicable, must control. The plan also must include a statement that the Provider will inform the Adopting Employer of any amendments made to the plan or of the discontinuance of the plan. General guidance issued in 2019 regarding the use of per diems after the Tax Cuts and Jobs Act remains in effect (see our Checkpointarticle). Proc. Additionally, the IRS requests that applications be submitted by thumb or flash drive instead of being submitted as paper files, and that the documents be saved in Microsoft Word or Adobe Acrobat PDF format. Proc. Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study. See sections 4.06 and 5.04 of Rev. 2019-39 provides that the beginning date of the Remedial Amendment Period with respect to a Form Defect first occurring in a 403(b) Pre-approved Plan after the Initial Remedial Amendment Period is the same date that would be applicable if that Form Defect had occurred in an individually designed plan (see section 2.13(1) of this revenue procedure for a description of the date a Remedial Amendment Period begins). Until further notice, any comments submitted on paper will be considered to the extent practicable. The Provider must also notify an Adopting Employer that failure to timely adopt the plan or restatement, when required, or failure to take into account plan amendments in the operation of the plan, could result in adverse tax consequences. However, an Adopting Employer of a Nonstandardized Plan that adds language to satisfy the requirements of 415 due to the required aggregation of plans may obtain reliance with regard to 415 by applying for a determination letter using Form 5307 (as updated). Such an application may be filed at the time of the assumption of plan sponsorship by the new Provider, and the filing is not limited to the applicable On-Cycle Submission Period. .04 Additional submission requirements for interim amendments If the 403(b) Pre-approved Plan has received an Opinion Letter for the preceding Cycle, in addition to the application described in section 10.03, the Provider must submit a certification that all interim amendments (and initial amendments, as described in section 4.11, if applicable) on the applicable Cumulative List have been made, and a cover letter summarizing how the provisions of the plan are affected by each amendment. collaboration. Proc. .09 Material furnished to Adopting Employers A Provider must furnish each Adopting Employer with a copy of the approved 403(b) Pre-approved Plan, copies of any subsequent amendments, and the most recently issued Opinion Letter for the plan from the IRS. 2019-39 is modified. The IRS will not review for, and the Opinion Letter will not cover, any provisions included in Investment Arrangements. 2021-30 (or its successor). See section 8.04. Proc. 2020-40 modifies Rev. 2019-39 provides that an Eligible Employer adopting a 403(b) Pre-approved Plan generally must adopt an interim amendment with respect to a change in 403(b) Requirements. 2013-22, as modified by Rev. This revenue procedure modifies section 4.02 of Rev. The application will be subject to a reduced user fee as provided in Appendix A of Rev. Proc. Proc. As an additional savings measure, GSAs lodging per diem rate methodology includes taking five percent off the final average daily rate in each location. Proc. .06 IRS discretion The IRS may, in its discretion, decline to issue an Opinion Letter for other types of plans or issues not described in this section. In this case, in order to have reliance, the Adopting Employer would need to re-adopt the 403(b) Pre-approved Plan after the issuance of the Opinion Letter for the plan. You may use the dropdown box below to select a country. b. See sections 8.01 and 8.02 for the effect of any other amendments on reliance on an Opinion Letter by the Adopting Employer. The Department of the Treasury and the Internal Revenue Service have received several requests for further extension of the time period. .17 Section 11.04 of Rev. policy, Privacy Proc. In this case, the Adopting Employer will be treated as never having had any reliance on the Opinion Letter and will be treated as never having been eligible for the Cycle system. Proc. When the review of 403(b) Pre-approved Plan documents for a specific Cycle is close to being completed, the IRS will announce the date by which Adopting Employers must adopt Newly Approved 403(b) Pre-approved Plans. 4 The written plan document requirement applies to a 403(b) plan maintained by a Church or a Qualified Church-Controlled Organization only if the plan is a Retirement Income Account plan under 403(b)(9). 424, Rev. 945, as modified by Notice 2020-35, 2020-25 I.R.B. Proc. 2021-4 (as updated annually). governments, Business valuation & 8 For an individually designed plan, the Remedial Amendment Period for a Form Defect related to a change in 403(b) Requirements generally ends on the last day of the second calendar year that begins after the issuance of the Required Amendments List in which the change in 403(b) Requirements appears. Depending upon the length of the IRS review process, Eligible Employers will have approximately a two-year period to adopt the updated plan (Employer Adoption Window). 2016-37 in future guidance to reflect guidance issued after the publication of Rev. The IRS expects to have limited personnel available to process public comments that are submitted on paper through mail. Proc. .15 Section 11.02 of Rev. The IRS anticipates establishing a program that would permit Adopting Employers to apply for a determination letter on Form 5300, Application for Determination for Employee Benefit Plan, under rules and procedures similar to the rules and procedures applicable to 401(a) pre-approved plans (see section 20.03 of Rev. Proc. Proc. Proc. 575, to provide that an interim amendment made to a pre-approved plan qualified under 401(a) of the Internal Revenue Code (Code) is adopted timely if the amendment is adopted by the end of the second calendar year after the calendar year in which the change in qualification requirements is effective with respect to the plan. Prior to issuing Opinion Letters for a Cycle, the IRS will send a notification to the applicable Mass Submitter or Provider, if the IRS determines that the plan appears to be in full compliance with the applicable 403(b) Requirements, based on the submissions and the review as of the date of notification. Rev. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. Proc. Proc. The standard meal allowance, which is the federal meals and incidental expense (M&IE) per diem rate. (4) A separate application form (or Appendix A) must be submitted with respect to each adoption agreement for which an Opinion Letter is applied. Proc. Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. The IRS began accepting Cycle 1 applications for opinion and advisory letters regarding the acceptability under 403(b) of the form of prototype plans and volume submitter plans, respectively, on June 28, 2013. If an application is withdrawn, the case may be referred to IRS Employee Plans Examinations. .14 The Department of the Treasury (Treasury Department) and the IRS expect to continue to update this Opinion Letter program revenue procedure, in whole or in part, from time to time, including providing further improvements based on comments received. .23 Rev. Newsroom, Presidential & Congressional Commissions, Boards or Small Agencies, Diversity, Equity, Inclusion and Accessibility, FY2021 Per Diem Rates for Federal Travelers Released. 2016-37 defines an interim amendment as an amendment with respect to a disqualifying provision described in section 5.03 of Rev. This revenue procedure sets forth the procedures of the IRS for issuing opinion letters regarding the satisfaction in form of 403(b) pre-approved plans with respect to the requirements of 403(b) of the Internal Revenue Code for the second remedial amendment cycle (Cycle 2). Thus, the representation must indicate whether a Providers plan may include only one of a certain group of optional provisions, may include only a specific combination of provisions, or may exclude the provisions entirely. M&IE Rate ($) 1 Breakfast Lunch Proc. .18 Provisions applicable to Standardized Plans In addition to the requirements set forth in sections 5.03 through 5.17, each Standardized Plan must either provide that the only contributions that an Adopting Employer may elect to provide under the plan are elective deferrals or meet the following requirements: (1) Under 1.415(f)-1(a)(3), all 403(b) annuity contracts purchased by an employer for a participant are treated as one 403(b) annuity contract for purposes of 415. (a) A Minor Modification is a minor change to an otherwise word-for-word identical 403(b) Pre-approved Plan of the Mass Submitter that the IRS determines does not require an in-depth IRS technical review. 2017-41, as modified by Rev. 6 See section 2.20 of this revenue procedure for the extension of the expiration date of March 31, 2020, to June 30, 2020, by Notice 2020-35, 2020-25 I.R.B. A 403(b) Pre-approved Plan includes an Interim 403(b) Pre-approved Plan, a Newly Approved 403(b) Pre-approved Plan, and an Existing 403(b) Pre-approved Plan, as described in this section 4.27. (c) either (i) the only contributions under the plan are elective deferrals, or (ii) the plan provides for contributions other than elective deferrals and all of the employers in the Adopting Employers controlled group are Eligible Employers. 2019-39 to expand the situations in which the plan amendment deadline for discretionary amendments made to a 403(b) Pre-approved Plan may be extended. The plan must provide that, for purposes of allocations, the definition of total compensation is all compensation within the meaning of 415(c)(3), excluding all other compensation, or compensation that otherwise satisfies 414(s) and 1.414(s)-1(c). Proc. 2016-37, 2016-29 I.R.B. 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