Mainspring in Motion

Winter 2009

IRS Extends Deadline for 403(b) Plan Document

The IRS announced relief for 403(b) plan sponsors who struggled to meet the written plan document requirement by Jan. 1.

403(b) plan sponsors now have until the end of 2009 to meet the written document rule, provided they perform the following:

• By Dec. 31, 2009, the plan sponsor must adopt a written 403(b) plan document that intends to satisfy the requirements of IRC Sec. 403(b) and the related regulations.
• During 2009, the plan sponsor must operate the plan in accordance with a reasonable interpretation of 403(b) and the related regulations.
• By the end of 2009, the plan sponsor must make its best effort to retroactively correct any operational failure during the 2009 calendar year to conform to the written plan.

The Standard encourages 403(b) sponsors to adopt a plan document as early in the year as possible to meet the requirement of operating the plan in compliance with the plan document.

As always, we can help. Contact your account manager by calling 800.262.7111 for help writing a plan document that meets the IRS requirements.