403(b) Plan Document Due Date

On December 11, 2008, the Internal Revenue Service issued Notice 2009-3, Relief from Immediate Compliance with 2009 §403(b) Written Plan Requirement. Prior to this Notice, the final 403(b) plan regulations published on July 26, 2007, stated that the deadline for 403(b) plan sponsors to have a written plan document was January 1, 2009. This Notice states that the IRS is extending the deadline for plans sponsors to adopt new written plans or amend existing plans to satisfy the requirement of the final 403(b) regulations. 

According to the Notice, “the Service will not treat a 403(b) plan as filing to satisfy the requirements of §403(b) and the final regulations during the 2009 calendar year, provided that: 

1. On or before December 31, 2009, the sponsor of the plan has adopted a written §403(b) plan that is intended to satisfy the requirements of §403(b) (including the final regulations) effective as of January 1, 2009.
2. During 2009, the sponsor operates the plan in accordance with a reasonable interpretation of §403(b), taking into account the final regulations; and
3. Before the end of 2009, the sponsor makes its best efforts to retroactively correct any operational failure during the 2009 calendar year to conform to the terms of the written §403(b) plan, with such correction to be based on the general principles of correction set forth in the Service’s Employee Plans Compliance Resolution System (EPCRS) at section 6 of Rev. Proc. 2008-50 (2008-35 I.R.B. 464).”

The IRS plans to issue further guidance on sample plan document language and related matters during 2009.