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. (2) The adoption agreement or single plan document must require the Adopting Employer to show its status with respect to the nondiscrimination requirements in 1.403(b)-5 by indicating whether the plan is: (b) a plan of an Adopting Employer that is a Church or QCCO for employees of the Church or QCCO; or. 2 The Department of the Treasury and the IRS also anticipate, subject to available resources, establishing a determination letter program for 403(b) individually designed plans that will be similar to the determination letter program for 401(a) individually designed plans. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Please note the meal and incidental rates are inclusive of GST. Proc. Proc. 2016-37 to extend the deadline for adopting an interim amendment for a 401(a) pre-approved plan to match the deadline for adopting an interim amendment for a 403(b) pre-approved plan, which is set forth in Rev. 2021-4, 2021-1 I.R.B. Only one copy of the basic plan document should be provided. 2016-37 sets forth the deadline for the timely adoption of an interim amendment to a qualified pre-approved plan. In this case, in order to have reliance, the Adopting Employer would need to re-adopt the 403(b) Pre-approved Plan after the issuance of the Opinion Letter for the plan. .12 Inadequate submissions The IRS will return, without further action or refunding the user fee, plans that are not in substantial compliance with the 403(b) Requirements, or plans that are so deficient that they cannot be reviewed in a reasonable period of time. 2016-37 is deleted. Your online resource to get answers to your product and .02 Section 15.02 of Rev. .01 Provisions required in all 403(b) Pre-approved Plans Each 403(b) Pre-approved Plan must comply with the requirements set forth in sections 5.03 through 5.17. Provided that Employer X adopts timely interim amendments, Employer Xs plan will remain eligible for the Cycle through the end of Cycle 3. Such an application may be filed at the time of the assumption of plan sponsorship by the new Provider, and the filing is not limited to the applicable On-Cycle Submission Period. Until further notice, any comments submitted on paper will be considered to the extent practicable. An Adopting Employer that fails to adopt a newly approved version of a 403(b) Pre-approved Plan by the end of any Employer Adoption Window will no longer be treated as maintaining a 403(b) Pre-approved Plan. 2020-49 extends that time period until September 30, 2021. The location is presumed convenient for residents of the approving governmental unit if the public hearing is located in the approving governmental units capital or seat of government. Proc. An Investment Arrangement may be an annuity contract under 1.403(b)-2(b)(2), a custodial account under 403(b)(7), or a Retirement Income Account. Every 403(b) Pre-approved Plan must therefore incorporate by reference the terms of the Investment Arrangements under the plan. (a) In general A Flexible Plan is a plan submitted by a Mass Submitter that includes optional provisions, as described in the immediately subsequent paragraph (b) of this section 11.03. Accordingly, section 4.02 of Rev. .08 Sample language The IRS anticipates providing updated LRMs before the On-Cycle Submission Period with respect to a Cycle begins. 1. The rate for any CONUS or OCONUS locality of travel for the incidental expenses only deduction is $5 per day. .06 Example Employer X adopts a newly approved Standardized Plan during the Cycle 2 Employer Adoption Window. Providers must make reasonable and diligent efforts, as soon as practicable following the adoption of plan amendments, to ensure that Adopting Employers of the Providers plan have actually received and are aware of the plan amendments. Proc. Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. In addition, the Adopting Employer must complete a new dated adoption agreement or signature page if it modifies any prior elections or makes new elections. Proc. Proc. Upon written request, a Provider must provide to the IRS a list of Adopting Employers that indicates, to the best of the Providers knowledge, which of those employers continue to maintain the plan as a Pre-approved Plan and which of those employers have ceased to maintain its 403(b) Pre-approved Plan within the preceding three years. 2013-22 to reduce the number of employers required to adopt a 403(b) Pre-approved Plan, to permit an application for an advisory letter for a volume submitter specimen plan to be filed by a Mass Submitter on behalf of a minor modifier of the Mass Submitters plan, and to extend the deadline for submitting a 403(b) Pre-approved Plan to the IRS for an opinion or advisory letter. .13 Definition of employee Each 403(b) Pre-approved Plan that is not a Governmental Plan must define an employee as any employee of the Adopting Employer maintaining the plan or any other Eligible Employer aggregated with that Adopting Employer under 414(b), (c), (m), or (o) and the regulations thereunder. .25 Rev. The more you buy, the more you save with our quantity Rev. WASHINGTON The U.S. General Services Administration (GSA) today released the fiscal year (FY) 2021 travel per diem rates, which will take effect on October 1, 2020. .08 Provider amendments Each 403(b) Pre-approved Plan must include a procedure for amendments by the Provider, so that changes in the Code, regulations, or other guidance published in the Internal Revenue Bulletin, and any correction of the plan, may be applied to all Adopting Employers. The special M&IE rates for taxpayers in the transportation industry are $69 for any locality of travel in the continental United States (CONUS) and $74 for any locality of travel outside the continental United States (OCONUS). 2019-48 (or successor). The Bulletin is divided into four parts as follows: Part I.1986 Code. is checked, do you expect at least 15 Eligible Employers to adopt one of your 403(b) plans? Proc. 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: Proc. 295, and Notice 2020-35, sets forth the procedures of the IRS for issuing opinion letters regarding the qualification in form of 401(a) pre-approved plans. Proc. For FY 2021, the standard Continental United States (CONUS) lodging rate will remain unchanged at Proc. Elective deferrals (other than Roth), _____e. Taxpayers using the rates and list of high-cost localities provided in this notice must comply with Rev. However, the plan as adopted by a Provider must provide a method for investing assets. All rights reserved. Proc. collaboration. As a result of this modification, the interim amendment deadline set forth in section 15.06(1)(a) of Rev. The limited extension of the Initial Remedial Amendment Period applies to a Form Defect that: (a) either (i) results in the failure of the plan to satisfy the 403(b) Requirements by reason of a change in those requirements, or (ii) is integral to the 403(b) Requirement that has been changed, and (b) first occurs on or after January 1, 2018. .09 Adopting Employer modification to satisfy 415 Each 403(b) Pre-approved Plan must provide that plan provisions may be amended by the Adopting Employer to the extent necessary to satisfy 415 because of the required aggregation of multiple plans under that section. Every 403(b) Pre-approved Plan that provides a vesting schedule for contributions other than elective deferrals must also satisfy the following requirements: (1) the portion of a participants interest in the plan that is not vested must be maintained in a separate account for the participant that is treated as a separate contract to which 403(c) (or, in case of a Custodial Account, 401(a)) applies, (2) as amounts in the participants separate account become nonforfeitable, they must be removed from the separate account and treated as amounts held under a 403(b) plan, to the extent permitted under 1.403(b)-3(d)(2)(ii), and (3) all nonvested amounts remaining in the participants separate account must become nonforfeitable upon termination of the plan. See section 4.27. 2019-39 provides that a Provider (or Eligible Employer) is considered to have adopted an interim amendment timely if the amendment is adopted by the later of (1) the end of the calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan, or (2) in the case of a Governmental Plan, the later of (a) the end of the calendar year following the calendar year in which the change in 403(b) Requirements is effective with respect to the plan, or (b) 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins on or after the date the plan amendment becomes effective. 6 See section 2.20 of this revenue procedure for the extension of the expiration date of March 31, 2020, to June 30, 2020, by Notice 2020-35, 2020-25 I.R.B. tax, Accounting & 2021-3 is amplified. When there are changes to 403(b) Requirements that affect the provisions of the written plan document, the adoption of interim amendments generally will be required in accordance with the rules set forth in section 11.04 of Rev. 2013-22 continue to apply to opinion and advisory letter applications for 403(b) Pre-approved Plans submitted for Cycle 1. 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. This revenue procedure applies to disqualifying provisions that are effective with respect to a plan after December 31, 2020. Further, if more than one governmental unit is required to hold a public hearing, the hearings may be combined as long as the combined hearing affords the residents of all of the participating governmental units a reasonable opportunity to be heard. 2013-22, employees of a Qualified Church-Controlled Organization (QCCO) or a non-QCCO may not participate in a 403(b) Pre-approved Plan that is intended to be a Retirement Income Account. POPULAR TAX TOPICS Proc. Proc. (3) Notwithstanding the preceding provisions of this section 4.21, any person that has an established place of business in the United States where it is accessible during every business day may be a Provider that offers a plan that is word-for-word identical to a plan of a Mass Submitter (as an identical adopter) or a plan that includes Minor Modifications to a plan of a Mass Submitter (as a minor modifier adopter) regardless of the number of Eligible Employers that are expected to adopt the plan. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. Child and Dependent Care Credit 26 CFR 601.601: Rules and Regulations. 2019-39 establishes a system of recurring Remedial Amendment Periods for 403(b) individually designed plan Form Defects first occurring after the Initial Remedial Amendment Period expires (that is, after June 30, 2020). As of January 2021, the per diem allowance is $66 per day in the continental United States. For purposes of determining whether 15 unaffiliated Providers offer, on a word-for-word basis, the same 403(b) Pre-approved Plan, a Mass Submitter that is also a Provider is treated as an unaffiliated Provider. In the interest of sound tax administration, the Service answers inquiries from individuals and organizations regarding their status for tax purposes and the tax effects of their acts or transactions. If a Mass Submitter repeatedly fails to identify the modifications, the IRS may deny permission to that Mass Submitter to submit additional modifications. Notice 2020-71 is modified and superseded. 775. The Meal and Incidental Expense (M&IE) per diem tiers for FY 2021 are unchanged at $55-$76. The rate for any locality of travel within or outside the U.S. for the incidental expenses only deduction is $5 per day. High-cost localities. If a 403(b) Pre-approved Plan is intended to be a Retirement Income Account, the plan also must include the provisions set forth in section 5.19. See section 8.04 for situations in which an Adopting Employer may obtain a determination letter using Form 5307 (as updated). 2020-49, 2020-48 I.R.B. Proc. Proc. Integrated software M&IE Rate ($) 1 Breakfast Lunch See section 4.11 of this revenue procedure for more details regarding the limited extension of the Initial Remedial Amendment Period. 654. This information will be used to determine whether a plan is entitled to favorable tax treatment. This notice also modifies Notice 2020-71, 2020-40 I.R.B. (c) The Mass Submitter must initially submit the first page of the application form (or the entire Appendix A) as a placeholder with respect to each Provider that will offer a plan that is a Minor Modification of the Mass Submitters plan during the On-Cycle Submission Period. .15 Section 11.02 of Rev. Proc. The Remedial Amendment Period permits a plan to be amended retroactively to comply with a change in 403(b) Requirements; however, a plan must be operated in compliance with a change in 403(b) Requirements beginning on the effective date of the change. 2019-39, as part of the correction of a Form Defect within the Remedial Amendment Period for the Form Defect, an Adopting Employer must conform the operation of the 403(b) Pre-approved Plan to match the correction of the Form Defect retroactive to the beginning of the Remedial Amendment Period for the Form Defect. Similarly, a later deadline is provided for a 403(b) Pre-approved Plan that is a Governmental Plan. (2) Section 13 of Rev. .16 Newly Approved 403(b) Pre-approved Plan See section 4.27(3)(b). See section 8. This notice, which replacesIRS Notice 2020-71(see our Checkpointarticle), announces rates for use under the optional high-low substantiation method, special rates for transportation industry employers, and the rate for taxpayers taking a deduction only for incidental expenses. .12 Interim 403(b) Pre-approved Plan See section 4.27(3)(a). See section 10.02. .18 Nonstandardized Plan A Nonstandardized Plan is a 403(b) Pre-approved Plan that is not a Standardized Plan. See section 12.02. 1 In general, capitalized terms are defined in section 4 of this revenue procedure. (See also 1.415(c)-1(d) and 1.415(f)-1(f) for special rules applicable to 403(b) plans.) To the extent feasible, lead plans and substantially identical plans should be submitted together. Proc. Accordingly, the Treasury Department and the IRS continue to invite further comments on how to improve the Opinion Letter program. 2021-4 (as updated annually). The estimated number of respondents and/or recordkeepers is 8,188. Rev. FY 2023 Per Diem Highlights. The collections of information in this revenue procedure are in sections 5.11, 9.01, 9.02, 10.03, 11, and 19. Looking for U.S. government information and services? New Mileage Rate for 2022 Share This Print The new rate for business miles driven for travel taking place on or after July 1, 2022, is $0.625 per mile , an increase from $0.585 in January 2022. This notice also modifies Notice 2020-71, 2020-40 I.R.B. For FY 2021, the standard Continental United States (CONUS) lodging rate will remain unchanged at $96, and 319 locations will receive a maximum lodging allowance higher than the standard allowance. 467, Rev. .05 An Opinion Letter does not consider issues related to a plans coverage of multiple employers that are not in a single controlled group For a 403(b) Pre-approved Plan that is not a Governmental Plan, an Opinion Letter does not express an opinion, and may not be relied upon, with respect to whether the plan meets any requirements that apply due to a plans coverage of multiple employers that are not in a single controlled group for purposes of 414(b), (c), (m), or (o) and the regulations thereunder. A Single Document Plan consists of a single plan document offered by a Provider without an adoption agreement. accounting, Firm & workflow Type(s) of contributions permitted under the Providers plan: _____a. Per Diem Rates Maximum travel per diem rates for current and prior years for the continental United States are available at the General Service Administration (GSA) Website: Per Diem Rates Any area that is not specifically listed is assigned the standard CONUS (Continental United States) per diem rate. Proc. Official websites use .gov b. ELIGIBILITY FOR THE CYCLE SYSTEM, SECTION 8. 2020-21 and modifies and supersedes Rev. 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. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses as substantiated without requiring that employees prove the actual amount they spent. In the case of a plan maintained by one employer, the remedial amendment period ends on the later of: (1) the due date (including extensions) for filing the income tax return for the employers taxable year that includes the date on which the remedial amendment period begins; or (2) the last day of the plan year that includes the date on which the remedial amendment period begins. .09 Material furnished to Adopting Employers A Provider must furnish each Adopting Employer with a copy of the approved 403(b) Pre-approved Plan, copies of any subsequent amendments, and the most recently issued Opinion Letter for the plan from the IRS. The next Cycle begins on the following day. Try our solution finder tool for a tailored set 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. Instead, the Provider should submit a restated plan, including the amendments, during the next On-Cycle Submission Period. (4) By submitting an application for an Opinion Letter for a 403(b) Pre-approved Plan under this revenue procedure (or by having an application filed on its behalf by a Mass Submitter), a person represents to the IRS that it is a Provider, and that it agrees to comply with any requirements imposed on Providers by this revenue procedure. 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