(AccountingToday) - The Internal Revenue Service and the Treasury Department are expanding one of their programs for more efficiently approving retirement plans to cover 403(b) plans.
The IRS will now enable 403(b) retirement plans, which are used by some public schools, churches and charities, to utilize the same individually designed retirement plan determination letter program currently employed by qualified retirement plans.
Revenue Procedure 2022-40 explains the expansion and includes other changes affecting individually designed retirement plans. Among the main changes, starting June 1, 2023, 403(b) retirement plan sponsors can submit determination letter applications for all initial individually designed retirement plans based on the sponsor's Employer Identification Number. (For further details, see section 12 of Revenue Procedure 2022-40.)
By Michael Cohn
November 7, 2022
