IRS Releases Guidance for Correcting Form Defects in 403(b) Plans

The IRS released Revenue Procedure (Rev. Proc.) 2019-39, which sets forth a system of recurring remedial amendment periods for correcting form defects in 403(b) plans. Rev. Proc. 2019-39 provides guidance for correcting form defects in both individually designed 403(b) and pre-approved 403(b) plans first occurring after March 31, 2020, which is the ending date for the initial remedial amendment period outlined in Rev. Procs. 2013-22 and 2013-18.

Rev. Proc. 2019-39 also provides a limited extension of the initial remedial amendment period for certain form defects, and establishes a system of 403(b) pre-approved plan cycles under which proposed pre-approved 403(b) plans may be submitted to the IRS for approval.

Additionally, this revenue procedure provides deadlines for both individually designed 403(b) plans and pre-approved 403(b) plans for the adoption of plan amendments.