403(b) Plan Document Restatement Extension
On Friday March 27th the IRS (Internal Revenue Service) announced an extension of the last day of the initial remedial amendment period for Section 403(b) plans from March 31, 2020, to June 30, 2020. This means that Plan Sponsors now have until June 30th of 2020 to adopt the pre-approved and individually designed 403(b) plan documents.
This additional 90-day extension is welcome news, particularly given the current environment in which we are all working. The extension gives Plan Sponsors who are working remotely additional time to work with a TPA, like ADMIN, and update their plan documents. The extension also provides Financial Advisors with an opportunity to work alongside their 403(b) clients and educate them on the importance of the prototype program.
ADMIN understands that every organization is dealing with the impact of COVID-19. There has been an added difficulty to daily operations for many organizations and the state of their retirement plans is not always top-of-mind. Nonetheless, adopting a 403(b) pre-approved document and taking advantage of this remedial amendment period before June 30, remains vitally important and will give 403(b) Plan Sponsors a piece of mind around the compliance of their plan.
To learn more about the IRS Pre-Approved 403(b) Prototype Plan, download our comprehensive Ebook: The 403(b) Prototype Plan Quick Guide.
You can also speak with one of our dedicated Sales team members by emailing us at [email protected] or by phone at 866-484-4400, Option 2.