What Is a 403(b) Prototype Plan?

A 403(b) prototype plan is a two-part plan document intended to satisfy the requirements of Internal Revenue Code Section 403(b) that a vendor or other entity (referred to as the prototype sponsor) provides to eligible employers that wish to adopt a written 403(b) plan. The prototype sponsor submits the document to the IRS for approval that the form of the document meets the requirements of Code Section 403(b). 

The first part of a 403(b) prototype plan document, called the basic plan document, contains provisions that apply to the plan of any eligible employer that uses the document to adopt a written 403(b) plan. 

The second part of the document, called the adoption agreement, is the part of the plan document which is completed and signed by an eligible employer in order to establish a written plan. The adoption agreement gives the eligible employer elections and options from which to choose in order to customize particular features of its plan.