For example, the adoption agreement, if applicable, should be amended to require that an Adopting Employer identify whether it is a non-QCCO (in which case, its employees participating in the plan would be subject to the nondiscrimination requirements of 403(b)(12)). Proc. Proc. .06 Prior to the On-Cycle Submission Period for Cycle 2, the IRS will issue a Cumulative List that identifies changes in the 403(b) Requirements that will be taken into account with respect to a plan document submitted to the IRS for Cycle 2 and that were not taken into account by the IRS in its review during Cycle 1. (Also: 147, 1.147(f)-1). The period described in section 4.02 of Rev. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. For purposes of the high-low substantiation method, the per diem rates in lieu of the rates described in Notice 2020-71 (the per diem substantiation method) are $296 for travel to any high-cost locality and $202 for travel to any other locality within CONUS. The optional provisions may be arranged as separate optional articles or sections within a 403(b) Pre-approved Plan or as separate optional provisions within a single article or section. See section 10.04 of this revenue procedure for additional application submission requirements for interim amendments. See section 4.26. 2017-18 and Rev. For example, a change that limits the number of participant loans or a change that adds a new choice of plan entry date would be considered a Minor Modification. .04 Cycle A Cycle is a Remedial Amendment Cycle, as defined in section 4.24. (1) Beginning of Remedial Amendment Period Under this system, unless otherwise specified in guidance published in the Internal Revenue Bulletin, a Remedial Amendment Period for a Form Defect in a 403(b) individually designed plan first occurring after the Initial Remedial Amendment Period, begins: (a) in the case of a provision of, or absence of a provision from, a new plan, the date the plan is put into effect; (b) in the case of an amendment to an existing plan (other than a Form Defect that is related to a change in 403(b) Requirements, or that is integral to such a change), the date the plan amendment is adopted or put into effect, whichever is earlier; (c) in the case of a provision that fails to satisfy the 403(b) Requirements by reason of a change in those requirements, the date on which the change becomes effective with respect to the plan; or. Phone: (803) 734-2121 See section 12.02. The IRS announced that per diem will be 100% deductible for income tax purposes. The IRS announced in n-21-63 that per diem will be 100% deductible for income tax purposes. For trucking, it had been only 80% deductable and for others, it was less than that. The GSA website lists these rates by location. .17 Identifying category of Eligible Employer and plan The adoption agreement or single plan document of every 403(b) Pre-approved Plan must satisfy the following requirements: (1) Although a single adoption agreement may be made available to different categories of Eligible Employers, the adoption agreement must require the Adopting Employer to show its status as an Eligible Employer by indicating whether the Adopting Employer is: (a) a government-sponsored educational organization described in 170(b)(1)(A)(ii) (a public school); (b) a tax-exempt organization described in 501(c)(3) that is exempt from tax under 501(a); (c) an employer of a minister described in 414(e)(5)(A); or. Off-cycle applications for a Cycle that are submitted during or after that Cycles Employer Adoption Window will not be accepted. In general, an interim amendment is considered to have been adopted timely if it is adopted by the end of the remedial amendment period described in section 2.07 of Rev. Join the our free mailing list to receive an update when 2024 rates are available. An Opinion Letter issued under this revenue procedure is referred to as a Cycle 2 Opinion Letter. Qualified Church-Controlled Organization, _____c. If substantiation is required, any unsubstantiated portion of the allowance must be returned or treated as taxable wages. A basic plan document and all associated adoption agreements should be submitted simultaneously. The principal author of this notice is James Liechty of the Office of Associate Chief Counsel (Income Tax & Accounting). 2020-21, 2020-22 I.R.B. Accordingly, the Treasury Department and the IRS continue to invite further comments on how to improve the Opinion Letter program. .02 Section 15.02 of Rev. If 9.c. Integrated software (6) Pursuant to section 10.10, a Providers failure to disclose a material fact, misrepresentation of a material fact, or failure to accurately provide any of the information called for on any form required by this revenue procedure (or in Appendix A, if used) may result in the inability of Adopting Employers to rely on an Opinion Letter (for example, if there is a failure to disclose a material fact, the IRS may revoke the Opinion Letter due to the failure). .01 Provider plan amendments generally Providers are required to amend their 403(b) Pre-approved Plans to ensure that the form of their plans continues to satisfy the 403(b) Requirements. 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 202127 through 202152 is in Internal Revenue Bulletin 202152, dated December 27, 2021. (3) Except as provided in the applicable Cumulative List, the IRS generally will not consider in its review of any Opinion Letter application any: (a) guidance issued after approximately 90 days (the exact date being stated in the Cumulative List) prior to the date the applicable Cumulative List is issued; (b) statutes enacted after approximately 90 days (the exact date being stated in the Cumulative List) prior to the date the applicable Cumulative List is issued; (c) statutes that are first effective in the year in which the On-Cycle Submission Period begins for which there is no guidance identified on the applicable Cumulative List (regardless of when they are enacted); or. However, procedural provisions that are required for the form of a plan to meet the 403(b) Requirements are not administrative provisions under this section. (a) New plan In the case of a new plan, on the later of (i) the last day of the second calendar year following the calendar year in which the plan is put into effect, or (ii) in the case of a Governmental Plan, 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins after the end of the plans initial plan year. Suite. _____c. Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them. This revenue procedure applies to disqualifying provisions that are effective with respect to a plan after December 31, 2020. 2016-37 is redesignated as section 15.06(1). Unless otherwise provided by this revenue procedure, upon an Eligible Employers adoption of a 403(b) Pre-approved Plan, the plan becomes eligible for the Cycle system. See also sections 4.21, 8.03(6), 9.01, 10.10 and 19.01 of this revenue procedure for other circumstances under which an Opinion Letter may be revoked. .29 Single Document Plan See section 4.27(2). For a taxpayer properly applying the rules of Revenue Procedure 2019-48,Notice 2021-63 provides a special rule that allows the taxpayer to treat the full meal portion of a per diem rate or allowance as being attributable to food or beverages from a restaurant beginning January 1, 2021, through December 31, 2022. Receiving a per diem allowance of $80 and being provided with all meals while working Payer provides goods and services to the value of $15 a day Getting a per diem allowance of $95 Moving between Inland Revenue sites Heads up. The IRS states that expense reports must include the business purpose of the trip, the date and place of the trip and receipts for lodging. Is Per Diem Taxed? Per diem payments arent subject to income tax since they arent included in an employees wages. However, your payments will be taxable if the following apply to you: The On-Cycle Submission Period for a Cycle may begin after the start of that Cycle. Elective deferrals (other than Roth), _____e. 2013-22 is modified and superseded regarding Opinion Letter applications submitted with respect to a 403(b) Pre-approved Plans second (and subsequent) Cycles. Proc. GSA Rev. 2017-18 provides that the last day of the Initial Remedial Amendment Period is March 31, 2020. In this case, the Adopting Employer will lose reliance on the Opinion Letter as of the effective date of the amendment but the plan will remain eligible for the Cycle system (provided that the Adopting Employer adopts timely interim amendments) until the end of the Cycle that includes the effective date. The Service is currently reviewing its prior ruling position on transactions described in section 3 of this revenue procedure. .05 Section 15.06(2) of Rev. 2016-37 is deleted. If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. Every Standardized Plan must include plan language reflecting these rules. (For information regarding benefits, rights, and features, and the determination of current availability, see 1.401(a)(4)-4.). .24 Remedial Amendment Cycle A Remedial Amendment Cycle or Cycle means one of a series of recurring Remedial Amendment Periods applicable to 403(b) Pre-approved Plans, during which a Provider submits a proposed 403(b) Pre-approved Plan for review and approval by the IRS, and during which the plan, once approved, is adopted by Eligible Employers. research, news, insight, productivity tools, and more. .02 Other applications Any other application for an Opinion Letter (including that of a minor modifier adopter of a Mass Submitter plan) that is submitted after the applicable On-Cycle Submission Period for a Cycle is treated as off-cycle, as defined in section 10.02. However, this notification will only indicate that the plan appears to meet the applicable 403(b) Requirements under review as of the date of the notification. .01 Identical adopter An application for an Opinion Letter for a 403(b) Pre-approved Plan that is word-for-word identical to a Mass Submitter 403(b) Pre-approved Plan will not be treated as off-cycle, as defined in section 10.02, merely because it is submitted after the end of the applicable On-Cycle Submission Period for the Cycle. If the changes are not received within 30 days, the application may be considered withdrawn. .04 Employer Adoption Window When the review of 403(b) Pre-approved Plan documents for a specific Cycle is close to being completed, the IRS will announce the Employer Adoption Window with respect to that Cycle, which will be an approximately two-year period during which Adopting Employers may adopt Newly Approved 403(b) Pre-approved Plans. Foreign Per Diem Rates by Location DSSR 925. This revenue procedure sets forth the procedures of the IRS for issuing opinion letters regarding the satisfaction in form of 403(b) pre-approved plans with respect to the requirements of 403(b) of the Internal Revenue Code for the second remedial amendment cycle (Cycle 2). .01 Pursuant to 147(f), tax-exempt qualified private activity bonds are subject to a public approval requirement. 2. In the case of a plan maintained by more than one employer, the remedial amendment period ends on the last day of the tenth month following the last day of the plan year in which the remedial amendment period begins. (1) An Adopting Employer of a Standardized Plan may rely on the Standardized Plans Opinion Letter that the form of the Adopting Employers plan satisfies the 403(b) Requirements, including, if applicable, the requirements of 401(a)(4) and 410(b), if: (a) the Standardized Plan has a currently valid Opinion Letter; (b) the Adopting Employer has not amended the Standardized Plan other than to choose options provided under the Standardized Plan or to make amendments that are described in section 9.03 relating to employer amendments that will not affect reliance (see also section 9.05 for when a 403(b) Pre-approved Plan is treated as individually designed); and. (See the Form 5305 series, which provides model IRA documents that have been pre-approved by the IRS and for which an opinion letter is not needed. Rev. 2019-48 (or successor). The written notification must be sent to the address provided in section 20 and must refer to the file folder number appearing on the latest Opinion Letter issued. 872, as modified by Rev. 743,5 sets forth the procedures of the IRS for issuing opinion and advisory letters for 403(b) Pre-approved Plans for Cycle 1, which began on the later of January 1, 2010, or the effective date of the plan, and that, ended on June 30, 2020. The IRS strongly encourages Providers to take advantage of this electronic submission format. The IRS has announced the special per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2021. Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. Proc. 2019-39 provides that an initial amendment that is intended in good faith to correct a Form Defect must be timely adopted by the Provider (or the Adopting Employer, if applicable) for the limited extension of the Initial Remedial Amendment Period to apply. .21 Rev. Specific eligibility requirements and submission procedures applicable to filing a Form 5307 determination letter application will be provided in a future update of Rev. .01 Opinion Letter issued to Mass Submitters. (a) A Minor Modification is a minor change to an otherwise word-for-word identical 403(b) Pre-approved Plan of the Mass Submitter that the IRS determines does not require an in-depth IRS technical review. Under this Initial Remedial Amendment Period, an Eligible Employer must amend its plan to the extent necessary to correct any Form Defects retroactive to the first day of the plans Initial Remedial Amendment Period. The Mass Submitter must certify under penalties of perjury that the plan of the Provider, except for the delineated changes, is word-for-word identical to the plan for which the Mass Submitter will be receiving or has received an Opinion Letter. See also Rev. Proc. The following locality has changed the portion of the year in which it is a high-cost locality: Jamestown/Middletown/Newport, Rhode Island. .02 Section 1.147(f)-1(d)(1) of the Income Tax Regulations provides that public hearing means a forum providing a reasonable opportunity for interested individuals to express their views, orally or in writing, on the proposed issue of bonds and the location and nature of the proposed project to be financed. 2019-39 sets forth plan amendment deadlines for interim amendments made to a 403(b) Pre-approved Plan. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in laws or regulations. Proc. Proc. Depending upon the length of the IRS review process, Eligible Employers will have approximately a two-year period to adopt the updated plan (Employer Adoption Window). Per-diems are fixed amounts to be used for lodging, meals, and incidental expenses when traveling on official business. (1) A plans Initial Remedial Amendment Period is the Remedial Amendment Period provided under Rev. 2019-39 also states that a Provider must submit an application for an Opinion Letter during the On-Cycle Submission Period that relates to an applicable Cycle. Are available income tax & Accounting ) the last day of the Initial Remedial Amendment Period is the Amendment... Lists previously published ruling and points out an essential difference between them a basic document! Are submitted during or after that Cycles Employer Adoption Window will not be accepted IRS that... A plan after December 31, 2020 403 ( b ) Pre-approved plan 1.147 f. 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