IRS Announces Expansion of Program for Approving Certain Retirement Plans
Published November 08, 2022
The Internal Revenue Service (IRS) and Treasury Department (Treasury) published Revenue Procedure 2022-40, expanding a program for approving retirement plans that will allow 403(b) plans, used by certain public schools, churches and charities, to apply for the same tax-favored treatment as qualified retirement plans like 401(k)s and use the same regulatory process.
The IRS details the expansion of the determination letter program, which is the process through which different types of plans can get IRS approval for tax-favored treatment and spells out other changes affecting individually designed retirement plans.
Future changes to the program will be released under Revenue Procedure 2023-4, currently in development, explaining additional changes to procedural requirements for plan submissions, such as phasing-in mandatory e-submission of determination letter requests. Forms 5300 and 5310 will also be updated to reflect these changes.
The changes are effective June 1, 2023.