The Internal Revenue Service (IRS) established a remedial amendment period in 2017 that requires 403(b) plans be maintained pursuant to a written plan document meeting requirements it set forth. This likely means you need to amend your current plan document or restate your plan entirely.
With the Mar. 31, 2020 corrective deadline quickly approaching, if you haven’t already, now is the time to take action to bring your plan into compliance.
If you previously adopted a written 403(b) plan document by Dec. 31, 2009 (or the original effective date of the plan if the plan went into effect later) you are eligible to retroactively improve either by adding required provisions or correcting defective provisions to your plan documents without penalty during this remedial amendment period.
If a plan contains a defect, the plan can be at risk for losing its qualification for favorable tax treatment. That’s why it’s important to take this opportunity to review existing language to add required provisions or correct defective provisions.