403(b) Pre-approved Plan Procedures

In Revenue Procedure (Rev. Proc.) 2021-37, the IRS set pre-approved 403(b) plan procedures:

• It eliminates the distinction between prototype and volume submitter plans.
• Reliance on an opinion letter is more similar to that applicable under the 401(a) pre-approved plan program.
• The IRS will open a determination letter program for 403(b) plans, including a Form 5307-type application for pre-approved plans.
• Rev. Proc. 2021-37 extends the plan amendment deadline for making interim amendments until the end of the second calendar year following the calendar year in which the change in 403(b) requirements is effective regarding the plan. 
• The guidance permits qualified church-controlled organizations (QCCOs) and nonqualified church-controlled organizations (NQCCOs) to adopt a preapproved Retirement Income Account plan.
• 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.