The IRS has extended the last day of the Initial Remedial Amendment Period for Section 403(b) plans from March 31, 2020 to June 30, 2020. As described in our earlier LawFlash, the Initial Remedial Amendment Period permits employers to correct form defects in their plan documents retroactive to as far back as January 1, 2010. The IRS determined that under the current circumstances, it was appropriate to extend the deadline given the current strains on tax-exempt employers.
As a consequence of this extension, the IRS has also moved back the date when the rules laid out in Revenue Procedure 2019-39 become applicable for correcting form defects affecting individually designed and preapproved plans that first occur after the Initial Remedial Amendment Period: It is now July 1, 2020, instead of April 1, 2020. Thus, the second cycle for 403(b) preapproved plans will begin on July 1, 2020.
If you have any questions regarding the extension and what it may mean for your organization, please contact the authors or your Morgan Lewis contact.