rp-13-22.pdf

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Rev. Proc. 2013-22
TABLE OF CONTENTS
SECTION 1. PURPOSE
SECTION 2. BACKGROUND
SECTION 3. DEFINITIONS
SECTION 4. OVERVIEW AND PRINCIPAL CHANGES FROM THE DRAFT REVENUE
PROCEDURE
SECTION 5. WHAT IS A § 403(b) PROTOTYPE PLAN?
SECTION 6. STANDARDIZED PROTOTYPE PLANS AND NONSTANDARDIZED
PROTOTYPE PLANS
SECTION 7. WHAT IS A § 403(b) VOLUME SUBMITTER PLAN?
SECTION 8. PROVISIONS REQUIRED IN EVERY § 403(b) PRE-APPROVED PLAN
SECTION 9. ADDITIONAL PROVISIONS REQUIRED IN EVERY § 403(b)
PROTOTYPE PLAN
SECTION 10. ADDITIONAL PROVISIONS REQUIRED IN EVERY § 403 PRE-
APPROVED PLAN INTENDED TO BE A RETIREMENT INCOME ACCOUNT UNDER
§ 403(b)(9)
SECTION 11. WHO CAN SPONSOR A § 403(b) PROTOTYPE PLAN OR A § 403(b)
VOLUME SUBMITTER SPECIMEN PLAN? WHO CAN BE A MASS SUBMITTER?
SECTION 12. DUTIES OF A PRE-APPROVED PLAN SPONSOR
SECTION 13. SCOPE OF AN OPINION OR ADVISORY LETTER
SECTION 14. EMPLOYER RELIANCE ON AN OPINION LETTER
SECTION 15. EMPLOYER RELIANCE ON AN ADVISORY LETTER
SECTION 16. MAINTENANCE OF APPROVED STATUS
SECTION 17. HOW TO APPLY FOR AN OPINION OR ADVISORY LETTER
SECTION 18. WITHDRAWAL OF APPLICATION
SECTION 19. ABANDONMENT OF SPONSORSHIP OF § 403(b) PLAN
SECTION 20. REVOCATION

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SECTION 21. RETROACTIVE REMEDIAL AMENDMENT
SECTION 22. EFFECT ON OTHER DOCUMENTS
SECTION 23. EFFECTIVE DATE
SECTION 24. PAPERWORK REDUCTION ACT

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SECTION 1. PURPOSE
This revenue procedure sets forth the procedures of the Internal Revenue
Service for issuing opinion and advisory letters for § 403(b) pre-approved plans (that is,
§ 403(b) prototype plans and § 403(b) volume submitter plans). Under the program
established by this revenue procedure, the Service will accept applications for opinion
and advisory letters regarding the acceptability under § 403(b) of the Internal Revenue
Code of the form of prototype plans and volume submitter plans, respectively, starting
June 28, 2013.
SECTION 2. BACKGROUND
.01 Contributions for an annuity contract purchased for an employee by an
eligible employer are generally excluded from the employee’s gross income if the
requirements described in § 403(b) are met. Amounts paid by an eligible employer to a
custodial account which satisfies the requirements of § 401(f)(2) are treated as
contributed to an annuity contract for an employee if the requirements of
§ 403(b)(7)(A)(i) and (ii) are met. A retirement income account, within the meaning of
§ 403(b)(9)(B), for employees of a Church-related organization, within the meaning of
§ 1.403(b)-2(b)(6) of the Treasury regulations, is treated as an annuity contract. For
purposes of this revenue procedure, and except as otherwise indicated, an eligible
employer is a public school, an employer described in § 501(c)(3) that is exempt from
tax under § 501(a), an employer of a minister described in § 414(e)(5)(A) with respect to
the minister, or a minister described in § 414(e)(5)(A) with respect to a retirement
income account established for the minister.
.02 The 2007 regulations (as defined in section 3.01) were generally effective as
of January 1, 2009.
.03 Sections 1.403(b)-3(b)(3) and 1.403(b)-9(a)(2)(ii) of the 2007 regulations
provide that an annuity contract, custodial account, or retirement income account
generally does not satisfy the requirements of § 403(b) unless it is maintained pursuant
to a plan. A plan means a written defined contribution plan that, in both form and
operation, satisfies the requirements of the 2007 regulations. Subsequent references in
this revenue procedure to the requirements of § 403(b) include the requirements of the
2007 regulations.
.04 The Service has not heretofore maintained a program for the issuance of
opinion and advisory letters regarding the acceptability of the form of a plan under
§ 403(b). However, the Service has on occasion issued private letter rulings regarding
the excludability of contributions for a contract or account under § 403(b).
.05 The Service has received comments from the public recommending ways to
assist eligible employers in complying with the written plan requirement of the 2007
regulations. Among the recommendations have been the publication of model plan
language for § 403(b) plans of public schools and the expansion of the scope of the

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Service’s master and prototype opinion letter program for the pre-approval of plans
qualified under § 401(a) to include § 403(b) plans.
.06 Rev. Proc. 2007-71, 2007-2 C.B. 1184, provides guidance regarding
compliance with the 2007 regulations and includes model plan language that may be
used by public schools either to adopt a written plan to reflect the requirements of
§ 403(b) or to amend a plan to reflect those requirements. Rev. Proc. 2007-71 also
provides that other eligible employers may use the model language as sample language
to comply with one or more of the requirements imposed by the 2007 regulations. Rev.
Proc. 2007-71, including its provisions regarding the extent to which the model plan
language may be relied upon, is not modified by this revenue procedure. Accordingly,
absent further notice, public schools and other eligible employers may continue to utilize
the language in Rev. Proc. 2007-71 as model or sample language.

.07 Notice 2009-3, 2009-1 I.R.B. 250, provides transition relief during 2009 for
sponsors of § 403(b) plans with respect to the requirement to have a written § 403(b)
plan in place by January 1, 2009. Notice 2009-3 provides that the Service will not treat
a § 403(b) plan as failing to satisfy the requirements of § 403(b) 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 2007 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 2007 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 relief in Notice 2009-3 applies solely with respect to the 2009 calendar year and
may not be relied on with respect to the operation of a § 403(b) plan or correction of
operational defects in any prior or subsequent year.
.08 Announcement 2009-34, 2009-18 I.R.B. 916, asked for public comments on a
draft revenue procedure for pre-approving the form of § 403(b) prototype plans and on
draft sample plan language that can be used in writing these plans.
.09 Announcement 2009-89, 2009-52 I.R.B. 1009, provides that if a plan sponsor
adopts a written § 403(b) plan on or before December 31, 2009, that is intended to
satisfy the requirements of § 403(b), the sponsor will have a remedial amendment
period in which to correct defects in the form of the plan, retroactive to January 1, 2010,
provided that the plan sponsor timely adopts a pre-approved § 403(b) plan with an
opinion letter or timely applies for an individual determination letter.

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.10 Rev. Rul. 2011-7, 2011-10 I.R.B. 534, provides guidance clarifying how the
2007 regulations apply when a § 403(b) plan is terminated.
.11 Announcement 2011-82, 2011-52 I.R.B. 1052, describes changes to the
determination letter program for plans qualified under § 401(a) that were first effective in
2012. Rev. Proc. 2013-6, 2013-1 I.R.B. 198, which sets forth the procedures for issuing
determination letters for qualified plans, reflects the changes described in
Announcement 2011-82. These changes resulted from the Service’s reevaluation of
how best to allocate its limited resources to help taxpayers understand and comply with
the law. These changes eliminate features of the determination letter program that are
of limited utility (i.e., elective demonstrations of a plan’s satisfaction of nondiscrimination
requirements) and limit the types of pre-approved qualified plans that may obtain
individual determination letters. As a result of these changes, determination letters for
qualified plans will no longer take into account, or provide reliance with respect to,
certain issues, and determination letters for qualified plans that are based on the plan’s
pre-approved status will only be issued with respect to volume submitter plans that
include minor modifications to the pre-approved volume submitter specimen plan.
These resource allocation considerations are also reflected in the approach taken in this
revenue procedure.
SECTION 3. DEFINITIONS
.01 2007 regulations means the final regulations under § 403(b) (§§ 1.403(b)-1
through 1.403(b)-11) that were published on July 26, 2007 (72 FR 41128).
.02 Annuity contract means a contract that includes payment in the form of an
annuity and that is issued by an insurance company qualified to issue annuities in a
State.
.03 Church means a church within the meaning of § 3121(w)(3)(A).
.04 Church-related organization means a church or a convention or association
of churches, including an organization described in § 414(e)(3)(A).
.05 Custodial account means a plan or separate account under a plan in which
an amount attributable to § 403(b) contributions or amounts rolled over to a § 403(b)
contract is held by a bank or a person who satisfies the conditions in § 401(f)(2), if:
(1) all amounts in the account are invested in stock of a regulated investment
company, as defined in § 851(a);
(2) the requirements of § 1.403(b)-6(c) restricting distributions are satisfied with
respect to amounts in the account;
(3) the assets in the account cannot be used for, or diverted to, purposes other
than the exclusive benefit of plan participants and their beneficiaries; and
(4) the account is not part of a retirement income account.

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.06 Eligible employer means an employer described in § 403(b)(1)(A).

.07 Governmental plan means a governmental plan within the meaning of
§ 414(d).
.08 Investment arrangement means the funding arrangement(s) under a § 403(b)
plan and includes an annuity contract, custodial account, and, in the case of a § 403(b)
plan for the employees of a Church-related organization, a retirement income account.
.09 The term mass submitter has the meaning given in section 11.03.
.10 The term minor modifier has the meaning given in section 11.03.
.11 Non-qualified church-controlled organization or Non-QCCO means a church-
controlled tax-exempt organization described in § 501(c)(3) that is not a qualified
church-controlled organization within the meaning of § 3121(w)(3)(B).
.12 The term nonstandardized plan has the meaning given in section 6.03.
.13 Prototype sponsor means a person meeting the eligibility requirements of
section 11.01 or section 11.03 that submits an application for an opinion letter for a
§ 403(b) prototype plan under this revenue procedure.
.14 Qualified church-controlled organization or QCCO means a church-controlled
tax-exempt organization described in § 501(c)(3) that is a qualified church-controlled
organization within the meaning of § 3121(w)(3)(B).
.15 Retirement income account means a defined contribution program
established or maintained by a Church-related organization to provide benefits under
§ 403(b) for its employees or their beneficiaries as described in § 1.403(b)-9.
.16 Section 403(b) pre-approved plan means a plan that is either a § 403(b)
prototype plan or a § 403(b) volume submitter plan.
.17 The term § 403(b) prototype plan has the meaning given in section 5.
.18 The terms § 403(b) volume submitter plan and § 403(b) volume submitter
specimen plan have the meaning given in section 7.
.19 The term standardized plan has the meaning given in section 6.
.20 Volume submitter practitioner means a person meeting the eligibility
requirements of section 11.02 or section 11.03 that submits an application for an
advisory letter for a § 403(b) volume submitter specimen plan under this revenue
procedure.

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SECTION 4. OVERVIEW AND PRINCIPAL CHANGES FROM THE DRAFT REVENUE
PROCEDURE
.01 Overview.

(1) This revenue procedure establishes a program for the pre-approval of
§ 403(b) plans. This program offers employers that maintain a § 403(b) plan an
alternative to adopting an individually designed plan in order to satisfy the written plan
requirement of the 2007 regulations. Under this program, the Service will issue an
opinion or advisory letter as to whether the form of a § 403(b) prototype plan or a
§ 403(b) volume submitter plan, respectively, meets the requirements of § 403(b). An
employer may satisfy the written plan requirement and obtain assurance that its plan
meets the requirements of § 403(b) by adopting a plan that has received an opinion or
advisory letter under this program.
(2) The program described in this revenue procedure is similar in many respects
to the Service’s pre-approved plan program for plans qualified under § 401(a), which is
described in Rev. Proc. 2011-49, 2011-44 I.R.B. 608. For example, two categories of
pre-approved plans -- prototype plans and volume submitter plans, which are described
in section 5 and section 7 of this revenue procedure, respectively -- are available under
both programs.
(3) Although the program described in this revenue procedure is similar in many
respects to the program described in Rev. Proc. 2011-49, there are differences between
the two programs, beyond those that result from the differences in the Code
requirements under § 401(a) and § 403(b). Under the pre-approved plan program for
qualified plans, adopting employers may be able to obtain individual determination
letters under certain circumstances. The Service is not establishing a determination
letter program for § 403(b) plans at this time and an employer who adopts a pre-
approved § 403(b) plan will not be able to apply for an individual determination letter for
the plan. The extent of the adopting employer’s reliance on the opinion or advisory letter
may be limited, based on the type of pre-approved § 403(b) plan the employer has
adopted, as explained in sections 4.01(6) and 4.01(8). A § 401(a) volume submitter
plan may provide that the volume submitter practitioner can amend the plan on behalf of
adopting employers, but the plan is not required to include such a provision. Under this
revenue procedure, a § 403(b) volume submitter plan must provide that the volume
submitter practitioner can amend the plan on behalf of adopting employers so that
changes in the Code, regulations, revenue rulings, or other guidance published by the
Service, or corrections of prior approved plans, may be applied to all eligible employers
that have adopted the plan.
(4) As more fully described in section 5, a § 403(b) prototype plan is a two-part
plan document intended to satisfy the requirements of § 403(b) that a vendor or other
entity (referred to as ”the prototype sponsor”) provides to eligible employers that wish to
adopt a written § 403(b) plan. The prototype sponsor submits the document to the
Service for approval that the form of the document meets the requirements of § 403(b).

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Approval is provided in the form of an opinion letter issued to the sponsor by the
Service.
(5) The first part of a § 403(b) prototype plan document, called the basic plan
document, contains provisions that apply to the plan of any eligible employer that uses
the document to adopt a written § 403(b) plan. An eligible employer may not modify the
provisions of a basic plan document. The second part of the document, called the
adoption agreement, is the part of the plan document which is completed and signed by
an eligible employer in order to establish a written plan. The adoption agreement gives
the eligible employer elections and options from which to choose in order to customize
particular features of its plan. Thus, different eligible employers can use the same
§ 403(b) prototype plan document to adopt a written § 403(b) plan, with the plans
differentiated by the choices each eligible employer makes in its plan’s adoption
agreement and the different investment arrangements offered under each plan. This
revenue procedure does not impose any special restrictions on the types, number, or
features of investment arrangements that may be offered under an eligible employer’s
§ 403(b) prototype plan. However, the terms of the § 403(b) prototype plan must
override any inconsistent provisions of investment arrangements under the plan.
(6) There are two forms of § 403(b) prototype plan under this revenue procedure:
a “standardized plan” and a “nonstandardized plan.” A § 403(b) prototype plan is a
standardized plan if the only contributions the employer may choose to provide under
the plan are elective deferrals or if the terms of the plan satisfy uniform coverage and
nondiscrimination requirements with respect to any other contributions under the plan.
For example, a standardized plan must satisfy one of the design-based safe harbors
described in § 1.401(a)(4)–2(b)(2) with respect to any employer nonelective
contributions (other than matching contributions) under the plan. A nonstandardized
plan is a § 403(b) prototype plan that is not a standardized plan. An eligible employer
that adopts a standardized plan generally can rely directly on the opinion letter for the
plan. An eligible employer that adopts a nonstandardized plan generally can rely
directly on the opinion letter for the plan if the plan is a governmental plan or the
employer is a Church or QCCO. In all other cases, an eligible employer that adopts a
nonstandardized plan generally can rely directly on the opinion letter for the plan except
with respect to whether the plan satisfies the nondiscrimination requirements of
§§ 401(a)(4) and 410(b) relating to contributions under the plan other than elective
deferrals. An opinion letter may not be relied upon with respect to Title I of ERISA,
although the Service may decline to issue an opinion letter on a plan that fails to satisfy
a Code provision that is parallel to a provision of Part 2 of Subtitle B of Title I of ERISA.
Standardized and nonstandardized plans are discussed in section 6, and reliance on an
opinion letter for a § 403(b) prototype plan is discussed in section 14. Also see
section 13 regarding the scope of an opinion or advisory letter.
(7) The second type of § 403(b) pre-approved plan is a § 403(b) volume
submitter plan, which is described in section 7. Under this component of the pre-
approved plan program, a § 403(b) volume submitter practitioner may apply for an
advisory letter that a § 403(b) volume submitter specimen plan (that is, a sample plan of
the practitioner rather than an employer’s plan) satisfies the requirements of § 403(b).

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A § 403(b) volume submitter plan is not required to have an adoption agreement, but
may have one.
(8) An adopting employer of a § 403(b) volume submitter plan can rely directly on
the advisory letter for the approved specimen plan, except to the extent that the
employer’s plan is not identical to the approved specimen plan, disregarding any
differences attributable solely to the employer’s choices of options provided under the
specimen plan, and except with respect to the requirements of §§ 401(a)(4) and 410(b)
(unless those requirements do not apply to the plan, for example, because the only
contributions under the plan are elective deferrals). See section 15 regarding employer
reliance on an advisory letter.
(9) Under the § 403(b) pre-approved plan program, the Service will review the
basic plan document and adoption agreement, or the specimen plan, as applicable, but
will not review any investment arrangements or any other documents that may form a
part of an employer’s plan. The terms of the pre-approved plan must therefore satisfy
the requirements of § 403(b), independent of the terms of the investment arrangements
under the plan. In addition, every § 403(b) pre-approved plan must provide that in the
event of a conflict between the terms of the pre-approved plan and the terms of any
investment arrangements under the plan, the terms of the plan will govern. Section 8
describes this and other provisions that must be included in every § 403(b) pre-
approved plan. Sections 9 and 10 describe additional provisions that must be included
in every § 403(b) prototype plan and in every § 403(b) plan intended to be a retirement
income account under § 403(b)(9), respectively. Also see section 13 regarding the
scope of an opinion or advisory letter.
(10) Some of the provisions described in section 8 that must be included in every
§ 403(b) pre-approved plan reflect procedural requirements of the § 403(b) pre-
approved plan program. One of those requirements is that each § 403(b) pre-approved
plan allow the prototype sponsor or volume submitter practitioner, as applicable, to
amend the § 403(b) pre-approved plan on behalf of each eligible employer that has
adopted the plan. Under this revenue procedure, each pre-approved plan sponsor must
carry out certain duties, among them to keep the document up to date for changes in
law and to notify adopting employers of amendments to the document. See section 11
for eligibility to sponsor a § 403(b) pre-approved plan, section 17 for opinion and
advisory letter application procedures, and sections 12 and 16 through 20 regarding the
duties of sponsorship.
(11) As indicated in Notice 2009-3 and Announcement 2009-89, this revenue
procedure, in section 21, includes a remedial amendment provision that allows eligible
employers to retroactively correct defects in the form of their § 403(b) plans for certain
years through the timely adoption of remedial amendments. This provision applies to
eligible employers that timely adopt a § 403(b) pre-approved plan or that otherwise
timely amend a § 403(b) plan. No inferences should be drawn from this provision
regarding the application of § 401(b) to retroactive changes in plans qualified under
§ 401(a).

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.02 Principal changes from the draft revenue procedure.
(1) This revenue procedure incorporates a number of changes to the program
described in the draft revenue procedure. Some of the changes reflect the changes to
the qualified plan determination letter program described in Announcement 2011-82 and
the Service’s need to more efficiently direct its limited resources. Others are based on
the Service’s consideration of the comments submitted in response to Announcement
2009-34. The following are the principal changes to the draft revenue procedure that
are incorporated in this revenue procedure:
(2) Announcement 2009-34 stated the Service’s intent to establish a program for
the issuance of determination letters for individually designed § 403(b) plans following
establishment of the prototype program described in the draft revenue procedure. The
draft revenue procedure provided that adopters of prototype § 403(b) plans would also
be able to obtain individual determination letters in certain cases. A program for the
pre-approval of prototype and volume submitter plans is a practical way to help large
numbers of adopters of § 403(b) plans understand and comply with the tax rules
regarding their plans. A pre-approval program will utilize the Service’s resources
efficiently. A determination letter program for individually designed § 403(b) plans, on
the other hand, is costly and less efficient. Given the Service’s limited resources, it is
not feasible for the Service to establish such a program at this time. Furthermore,
issuing individual determination letters to adopters of pre-approved § 403(b) plans
would greatly increase the Service’s cost of administering the pre-approved plan
program with minimal additional benefit to plan sponsors and plan participants.
Therefore, this revenue procedure does not contemplate the issuance of individual
determination letters to sponsors of § 403(b) plans. Thus, a sponsor of a § 403(b) plan
will be able to obtain reliance as to the acceptability of the form of its plan only if the
plan is a pre-approved plan as described in this revenue procedure or if the employer is
a public school that has adopted the model plan language included in Rev. Proc. 2007-
71 and is entitled to reliance under that revenue procedure. In addition, the extent of a
plan sponsor’s reliance on an opinion or advisory letter will depend in some cases on
the type of pre-approved § 403(b) plan that the sponsor adopts. See sections 4.01(6)
and 4.01(8).
(3) Announcement 2009-89 and the draft revenue procedure contained a
remedial amendment provision that would allow sponsors of § 403(b) plans to amend
their plans retroactively to satisfy § 403(b) and the 2007 regulations by either adopting a
pre-approved plan or amending an individually-designed plan and applying for a
determination letter. Although a determination letter program for § 403(b) plans is no
longer contemplated, sponsors of both pre-approved § 403(b) plans and individually
designed § 403(b) plans will be permitted to amend their plans retroactively to satisfy
§ 403(b) and the 2007 regulations. An individually-designed § 403(b) plan that is
eligible for remedial amendment under this revenue procedure must be amended to the
extent necessary to correct, retroactively, any defects in the form of the plan by the time
described in section 21.05. Employers using individually designed plans will not be
entitled to reliance that their plan terms comply with the requirements of § 403(b) unless
they timely restate their plans in the form of a pre-approved plan. As a result, after the

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deadline described in section 21.05, the sponsor of an individually designed § 403(b)
plan will not have reliance that the terms of the plan document meet the applicable
requirements for favorable tax treatment.
(4) The scope of the § 403(b) pre-approved plan program has been expanded
under this revenue procedure to provide for the issuance of advisory letters for § 403(b)
volume submitter specimen plans, including mass submitter specimen plans, in addition
to opinion letters for § 403(b) prototype plans. This change will provide eligible
employers that choose not to use an adoption agreement format in their plans access to
pre-approved § 403(b) plan documents.
(5) The provisions of the draft revenue procedure regarding mass submitter plans
have been modified in this revenue procedure to provide for the issuance of opinion
letters for § 403(b) prototype plans that are minor modifiers of a § 403(b) prototype plan
of a mass submitter, regardless of the number of eligible employers expected to adopt
the minor modifier plan.
(6) The scope of the program has been expanded under this revenue procedure
to provide for the issuance of opinion and advisory letters for retirement income
accounts.
(7) The definition of who is eligible to sponsor a § 403(b) pre-approved plan has
been modified to include a Church-related organization that sponsors a retirement
income account, regardless of the number of eligible employers expected to adopt the
plan.
(8) This revenue procedure eliminates the provision of the draft revenue
procedure that would have prohibited the issuance of opinion letters for plans that
include provisions applicable only to Churches and QCCOs, Church-related
organizations, or ministers described in § 414(e)(5)(A).
(9) This revenue procedure also eliminates the provision of the draft revenue
procedure that would have prohibited the issuance of opinion letters for plans that
include terms that are acceptable under § 403(b) only in a plan of a Church or QCCO.
Thus, for example, the Service will not decline to issue an opinion or advisory letter for a
plan merely because the plan does not require universal availability of § 403(b) elective
deferrals if the plan is available for adoption only by a Church or QCCO.
(10) This revenue procedure clarifies an adopting employer’s ability to rely on an
opinion or advisory letter for a § 403(b) pre-approved plan. The provisions of the
revenue procedure regarding reliance take into account the following factors:
(a) Generally, a § 403(b) plan must satisfy both (i) the universal availability
requirement of § 1.403(b)-5(b) with respect to elective deferral contributions and (ii) the
rules of § 1.403(b)-5(a) that require any nonelective contributions under the plan to
satisfy the nondiscrimination requirements of §§ 401(a)(4), 401(a)(17), 401(m), and
410(b) in the same manner as a qualified plan under § 401(a). However, pursuant to
§ 1.403(b)-5(d), the universal availability and nondiscrimination requirements of

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§ 1.403(b)-5 do not apply to a § 403(b) contract purchased by a Church or QCCO. In
addition, pursuant to § 1.403(b)-5(a)(5), a governmental § 403(b) plan must satisfy the
universal availability requirement with respect to elective deferrals under § 1.403(b)-
5(b), but such a plan is not required to satisfy the nondiscrimination rules for nonelective
contributions under § 1.403(b)-5(a), other than the requirement to limit compensation
taken into account under the plan in accordance with § 401(a)(17).
(b) Section 8 of this revenue procedure generally requires every § 403(b)
pre-approved plan to satisfy the requirements of the 2007 regulations. Under section
8.06(2) and (3) of this revenue procedure, every § 403(b) pre-approved plan must
satisfy the universal availability requirement with respect to elective deferrals under
§ 1.403(b)-5(b) and must limit compensation taken into account under the plan with
respect to nonelective contributions in accordance with § 401(a)(17), unless the
adopting eligible employer is a Church or QCCO. Under section 8.06(4), a § 403(b)
pre-approved plan that permits contributions subject to § 401(m) must include terms
that satisfy § 401(m), unless the plan is available for adoption only as a governmental
plan or by a Church or QCCO.
(c) A § 403(b) prototype plan that is a standardized plan as defined in section
6.01 of this revenue procedure limits the adoption agreement elections available to the
adopting employer with respect to nonelective contributions to safe harbors that
automatically satisfy the nondiscrimination requirements of §§ 401(a)(4) and 410(b). A
§ 403(b) nonstandardized prototype plan or a § 403(b) volume submitter plan may allow
the employer to make elections with respect to nonelective contributions that require
testing of the coverage and benefits under the plan to determine if the plan satisfies the
nondiscrimination requirements of §§ 401(a)(4) and 410(b).
(d) An employer that adopts a § 403(b) volume submitter plan may modify the
terms of the approved specimen volume submitter plan, in addition to selecting among
options under the plan, without causing the employer’s plan to be treated as an
individually designed plan, provided the employer’s plan is “substantially similar,” within
the meaning of section 7.01 of this revenue procedure, to the approved specimen plan.
(11) Taking into account the factors in the preceding paragraph, this revenue
procedure provides in general that:
(a) Any eligible employer that adopts a standardized § 403(b) prototype plan may
rely on an opinion letter for the plan.
(b) An eligible employer that adopts a nonstandardized § 403(b) prototype plan
may rely on an opinion letter for the plan if the plan is a governmental plan or if the
employer is a Church or QCCO.
(c) Any other eligible employer, including an employer that is a Non-QCCO, that
adopts a nonstandardized § 403(b) prototype plan may rely on the opinion letter for the
plan, except with respect to whether nonelective contributions under the plan satisfy the
requirements of §§ 401(a)(4) and 410(b).

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(d) An eligible employer that adopts a § 403(b) volume submitter plan may rely
upon an advisory letter for the plan, except (i) to the extent that the employer modifies
the terms of the approved specimen plan (other than by selecting options that are
permitted under the terms of the approved specimen plan); and (ii) if the plan is not a
governmental plan or a plan of a Church or QCCO, with respect to whether any
nonelective contributions under the plan satisfy the requirements of §§ 401(a)(4) and
410(b).
Other limitations on employer reliance on opinion and advisory letters are described in
sections 14 and 15 of this revenue procedure.
(12) This revenue procedure eliminates the provision of the draft revenue
procedure that would have required every § 403(b) prototype plan to provide for full and
immediate vesting of all contributions under the plan. Under this revenue procedure, a
§ 403(b) pre-approved plan may provide a vesting schedule for nonelective employer
contributions, rather than full and immediate vesting of such contributions. Except in the
case of certain volume submitter plans, as described below, nonelective employer
contributions (and earnings thereon) under a § 403(b) pre-approved plan must vest at
least as rapidly as would be required to satisfy the minimum vesting requirements of
§ 411(a)(2)(B), if the plan were a qualified plan under § 401(a), even if the plan is not
subject to the parallel minimum vesting requirements under section 203 of ERISA. A
volume submitter plan document that is designed to be used for a plan that is not
subject to the minimum vesting requirements of section 203 of ERISA (for example,
because the plan is a governmental plan) is not required to provide that nonelective
employer contributions will vest at least as rapidly as would be required to satisfy
§ 411(a)(2)(B). Every § 403(b) pre-approved plan that provides that an employee’s right
to nonelective employer contributions is forfeitable must also satisfy the following
requirements: (i) the portion of a participant’s interest in the plan that is not vested is
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; (ii) as
amounts in the participant’s separate account become nonforfeitable, they are 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 (iii) all nonvested amounts remaining
in the participant’s separate account become nonforfeitable upon termination of the
plan.
(13) The preamble to the 2007 regulations notes that a written plan facilitates the
allocation of responsibilities among various parties to a plan, helping ensure that these
responsibilities are met. This revenue procedure therefore requires every § 403(b) pre-
approved plan to provide that an appendix to the plan identify the parties responsible for
the various administrative functions under the plan necessary to comply with the
requirements of § 403(b) and other tax requirements, including such requirements that
apply on the basis of the aggregated investment arrangements issued to a participant
under the plan, and list all the vendors of investment arrangements approved for use
under the plan, including sufficient information to identify the approved investment
arrangements. This requirement replaces the requirement in the draft revenue
procedure that this information be set forth in the adoption agreement of a § 403(b)

13

prototype plan. Changes to the information in the required appendix will not affect the
employer’s ability to rely on an opinion or advisory letter.
(14) This revenue procedure requires every pre-approved plan sponsor to timely
notify adopting eligible employers of amendments and restatements of the plan and, in
general, to inform employers of the need to timely adopt the plan in the case of both
initial adoption and restatement of the plan. This requirement replaces the provision in
the draft revenue procedure that would have required sponsors to have both a
procedure to verify that adopting employers have timely adopted and signed the plan
when required and a procedure for employers to acknowledge receipt of plan
amendments if the employer is not required to complete a new adoption agreement.
(15) This revenue procedure clarifies that, under the remedial amendment
provisions of the procedure, retroactive amendments that are permitted to correct
defects in the form of the plan include amendments to investment arrangements and
any other documents that are incorporated by reference into the plan.
(16) A number of commentators urged the Service to modify the provision in the
draft revenue procedure that would have required every § 403(b) prototype plan to
provide that in the event of any conflict between the terms of the basic plan document
and adoption agreement and the terms of any investment arrangement under the plan,
or of any other document that is incorporated by reference into the plan, the terms of the
basic plan document and adoption agreement would control. After considering these
comments, the Service has concluded that a provision of the type described in the draft
revenue procedure is fundamental to proper operation of a § 403(b) pre-approved plan
program, particularly since the investment arrangements and other documents that may
be incorporated by reference will not be reviewed by the Service, and since the change
recommended by commentators would result in an unacceptable degree of uncertainty
as to which terms control in the event of conflict. Accordingly, this revenue procedure
requires every § 403(b) pre-approved plan to incorporate by reference the terms of the
investment arrangements under the plan and to provide that, in the event of any conflict
between the terms of the basic plan document and adoption agreement or volume
submitter plan and the terms of investment arrangements (or of any other documents
incorporated by reference into the plan), the terms of the basic plan document and
adoption agreement or volume submitter plan shall govern. Furthermore, an eligible
employer may not rely on an opinion or advisory letter for the employer’s § 403(b) pre-
approved plan if the terms of any investment arrangement under the employer’s plan
provide that such arrangement’s terms govern in the event of a conflict with the basic
plan document and adoption agreement or volume submitter plan. The Service
recognizes that this requirement will require vendors to be aware of and follow pre-
approved plan provisions that may affect them. The Service made certain other
changes, as described in section 4.02(17), that, in conjunction with the requirement to
incorporate by reference the terms of investment arrangements, are intended to
address concerns expressed by commentators regarding the requirement that the terms
of a pre-approved plan’s basic plan document and adoption agreement or volume
submitter plan govern if there is a conflict with the terms of an investment arrangement
under the plan. (Also see section 8.03.)

14

(17) In some cases, the objections described in section 4.02(16) (to the
requirement that the terms of the basic plan document and adoption agreement or
volume submitter plan govern in case of conflict) may have been based in part on a
perception that the adoption of a prototype plan effectively prohibits the inclusion of
additional features in the investment arrangements under the plan, or the availability of
different features in different investment arrangements under the plan, and that the
Service would not approve plans that allow adopting employers to provide that the
availability of certain features may depend on the participant’s choice of investment
arrangement. In revising the sample plan language, the Service has clarified that,
subject to the provisions of sections 8.04 and 8.05, such options are available to
drafters of pre-approved plans.
(18) A provision in the draft revenue procedure would have allowed a prototype
sponsor to correct certain typographical errors and incorrect cross-references in an
approved § 403(b) prototype plan without adversely affecting adopting employers’
reliance on the opinion letter if the correction would not change the original intended
meaning. As explained in section 3.04(1)(d) of Rev. Proc. 2011-49, the ability to correct
errors in this manner is no longer available for pre-approved qualified plans and will not
be available for pre-approved 403(b) plans.
SECTION 5. WHAT IS A § 403(b) PROTOTYPE PLAN?
.01 A § 403(b) prototype plan is a defined contribution plan that is intended to
satisfy the requirements of § 403(b) and is made available by a prototype sponsor for
adoption by eligible employers. (A § 403(b) prototype plan is one of two types of
§ 403(b) pre-approved plans, the other being a § 403(b) volume submitter plan which is
described in section 7 of this revenue procedure.) See section 11 of this revenue
procedure regarding the entities that are permitted to sponsor a § 403(b) prototype plan.
Each pre-approved form of a § 403(b) prototype plan, as made available for adoption by
eligible employers, consists of one (and only one) basic plan document and one (and
only one) adoption agreement. The basic plan document contains all the nonelective
provisions of the prototype plan that apply to the plans of all adopting eligible
employers. The basic plan document may not include any options or blanks to be
completed. The adoption agreement facilitates the selection of plan design alternatives
available under the basic plan document. By completing the adoption agreement, an
eligible employer may establish a plan (that is, the combination of the basic plan
document and the completed adoption agreement) that in form satisfies the
requirements of § 403(b).
.02 In pre-approved form, an adoption agreement can be used with only one
basic plan document. A basic plan document can be used with more than one adoption
agreement, but each basic plan document/adoption agreement pair constitutes one
separate § 403(b) prototype plan. Thus, for example, if a prototype sponsor sponsors
one basic plan document and offers adopting employers the choice of three adoption
agreements to be used with the basic plan document to establish a plan, the prototype
sponsor has three separate § 403(b) prototype plans and would need to submit three
applications for opinion letters under this procedure. A § 403(b) prototype plan that is

15

adopted by an eligible employer is a single plan regardless of whether there are multiple
investment arrangements or multiple vendors (that is, insurance companies or regulated
investment company custodians) under the plan. Adoption of two § 403(b) prototype
plans (that is, execution of two separate adoption agreements) constitutes the adoption
of two separate § 403(b) plans, regardless of whether the two plans use the same basic
plan document.
.03 A prototype sponsor may maintain more than one basic plan document. For
example, a prototype sponsor may maintain one or more basic plan documents to be
used only with plans that limit contributions to elective deferrals as well as one or more
basic plan documents to be used with plans that provide for elective deferrals and
employer nonelective contributions, whether or not such plans also provide for matching
contributions and/or after-tax employee contributions.
.04 A single basic plan document may not be used for both a § 403(b) plan that is
a retirement income account and a § 403(b) plan that is not a retirement income
account. Thus, a separate basic plan document is required for a plan that is intended to
constitute a retirement income account under § 403(b)(9).
.05 As described above, a basic plan document may have more than one
adoption agreement. Each plan (that is, each basic plan document/adoption agreement
pair) must be either a standardized plan or a nonstandardized plan. (See section 6 for
an explanation of the difference between a standardized plan and a nonstandardized
plan.) This is because a standardized plan may not include certain options that are
available to adopting employers of nonstandardized plans. Therefore, each adoption
agreement must specify whether it is a standardized plan adoption agreement or a
nonstandardized plan adoption agreement.
SECTION 6. STANDARDIZED PROTOTYPE PLANS AND NONSTANDARDIZED
PROTOTYPE PLANS
.01 Each § 403(b) prototype plan is either a standardized plan or a
nonstandardized plan. A § 403(b) prototype plan is a standardized plan if:
(1) the only contributions which an adopting eligible employer may elect to
provide under the plan are elective deferrals; or
(2) the form of the plan satisfies the requirements of section 6.02 with respect to
any contributions under the plan other than elective deferrals, irrespective of the
elections the adopting eligible employer makes in the adoption agreement, and without
regard to the terms of any investment arrangements under the plan or any documents
incorporated by reference into the plan.
.02 The form of a § 403(b) prototype plan satisfies the requirements of this
section 6.02 with respect to any contributions under the plan other than elective
deferrals if all of the following conditions are satisfied with respect to such contributions:

16

(1) The plan by its terms benefits all employees except those who may be
excluded under § 1.410(b)-6. For this purpose, “employee” means an employee, within
the meaning of § 1.403(b)-2(b)(9), of the adopting eligible employer and any eligible
employer within the meaning of § 1.403(b)-2(b)(8) in the adopting eligible employer’s
controlled group. The controlled group consists of the adopting eligible employer and
each other employer that is aggregated with the adopting eligible employer under
§ 414(b), (c), (m) or (o), including § 1.414(c)-5. Thus, if there is more than one eligible
employer in the controlled group, the plan must benefit all the employees of all the
eligible employers in the controlled group except those employees that may be
excluded under § 1.410(b)-6. A plan does not fail to satisfy this requirement with
respect to contributions other than elective deferrals merely because the plan provides
that individuals who become employees as the result of a transaction described in
§ 410(b)(6)(C), relating to certain employer acquisitions and dispositions, are excluded
from eligibility to participate in the plan during the period beginning on the date of the
transaction and ending on a date that is not later than the earlier of the last day of the
first plan year beginning after the date of the transaction or the date of a significant
change in the plan or in the coverage of the plan.
(2) All benefits, rights, and features under the plan (other than those, if any, that
have been prospectively eliminated) are currently available to all employees benefiting
under the plan. (For information regarding benefits, rights, and features, and the
determination of current availability, see § 1.401(a)(4)-4.)
(3) If the plan provides for employer nonelective contributions (other than
matching contributions), the plan must satisfy one of the design-based safe harbors
described in § 1.401(a)(4)–2(b)(2) with respect to such contributions.

(4) For purposes of determining the amount of contributions other than elective
deferrals, the plan must define compensation as total compensation. For this purpose,
total compensation means a definition of compensation that includes all compensation
within the meaning of § 415(c)(3) (disregarding § 415(c)(3)(E)) and excludes all other
compensation, or a definition that satisfies the rules under § 1.414(s)–1(c).
.03 A nonstandardized § 403(b) prototype plan is a § 403(b) prototype plan that
is not a standardized plan. For example, a § 403(b) prototype plan is a
nonstandardized plan if the adoption agreement allows the adopting employer to select
an allocation formula for nonelective contributions that does not satisfy one of the
design-based safe harbors described in § 1.401(a)(4)–2(b)(2).
SECTION 7. WHAT IS A § 403(b) VOLUME SUBMITTER PLAN?
.01 The term “§ 403(b) volume submitter plan” refers to either a “specimen
§ 403(b) plan” of a volume submitter practitioner or a plan of a client of the volume
submitter practitioner that is substantially similar to the volume submitter’s approved
specimen plan. For this purpose, an employer’s plan is not substantially similar to an
approved specimen § 403(b) plan, and will be considered to be an individually designed
plan rather than a pre-approved plan, if the Service determines (for example, during an

17

examination of the plan) that differences between the terms of the employer’s plan and
the terms of the approved specimen plan are so extensive or complex as to be
incompatible with the pre-approved plan program. (A § 403(b) volume submitter plan is
one of two types of § 403(b) pre-approved plans, the other being a § 403(b) prototype
plan which is described in section 5 of this revenue procedure.) See section 11 of this
revenue procedure regarding the entities that are permitted to sponsor a § 403(b)
volume submitter specimen plan. A “specimen § 403(b) plan” is a model plan document
(rather than the actual plan of an eligible employer) of a volume submitter that is
intended to satisfy the requirements of § 403(b). A specimen § 403(b) plan is not
required to, but may, include an adoption agreement. If more than one adoption
agreement may be used with a specimen § 403(b) plan, each specimen plan/adoption
agreement pair is a separate volume submitter plan. If an adoption agreement is used
for a volume submitter plan, it must satisfy the requirements for prototype adoption
agreements in section 9.03.
.02 A § 403(b) volume submitter plan that is adopted by an eligible employer is a
single plan regardless of whether there are multiple investment arrangements or
multiple vendors (that is, insurance companies or regulated investment company
custodians) under the plan. Adoption of two § 403(b) volume submitter plans
constitutes the adoption of two separate § 403(b) plans, regardless of whether both
plans are substantially similar to a single specimen § 403(b) plan.
.03 A volume submitter may maintain more than one specimen plan. For
example, a volume submitter may maintain one or more specimen plans that limit
contributions to elective deferrals as well as one or more specimen plans that provide
for elective deferrals and employer nonelective contributions, whether or not the plans
also provide for matching contributions and/or after-tax employee contributions.
.04 A single specimen plan may not be used for both a § 403(b) plan that is a
retirement income account and a § 403(b) plan that is not a retirement income account.
Thus, a separate specimen plan is required for a plan that is intended to constitute a
retirement income account under § 403(b)(9).
SECTION 8. PROVISIONS REQUIRED IN EVERY § 403(b) PRE-APPROVED PLAN
.01 Sections 8.04 though 8.10 describe provisions that must be included in every
§ 403(b) pre-approved plan.
.02 The Service’s review of a § 403(b) pre-approved plan will consider only the
terms of the basic plan document and adoption agreement or the volume submitter
plan, as applicable. Accordingly, the provisions described in sections 8.04 though 8.10
must be included in the basic plan document or adoption agreement of every § 403(b)
prototype plan and in every § 403(b) volume submitter plan, regardless of the terms of
any investment arrangements under the plan or any other documents that may be
incorporated by reference. This does not preclude the adoption of a § 403(b) pre-
approved plan (including a standardized prototype plan, as described in section 6) if
different investment arrangements under a plan have different features or prevent the

18

inclusion of additional provisions in the terms of the investment arrangements under the
plan or other documents incorporated by reference. Nor does it prevent a § 403(b) pre-
approved plan from using investment arrangements that are more restrictive than
required by § 403(b) or the basic plan document and adoption agreement or the volume
submitter plan. However, the terms of the basic plan document and adoption
agreement or the volume submitter plan, as applicable, must satisfy the requirements of
applicable law and sections 8.04 though 8.10 independent of any investment
arrangements under the plan or any other documents incorporated by reference.
.03 For example, an eligible employer’s § 403(b) prototype plan may offer both
investment arrangements that permit loans and investment arrangements that do not.
In this case, (1) the basic plan document must include provisions reflecting the
requirements of the 2007 regulations, including § 1.403(b)-6, and § 1.72(p)-1, and (2)
the basic plan document and adoption agreement, as completed by the employer, must
provide that, to the extent permitted by the terms governing the applicable investment
arrangement, participant loans are available. Similarly, an eligible employer’s § 403(b)
volume submitter plan must satisfy the requirements described in the preceding
sentence if the plan offers both investment arrangements that permit loans and
investment arrangements that do not. For sample plan language that satisfies these
requirements, see the Listing of Required Modifications (for § 403(b) plans) which may
be downloaded from the Internet at the following address: http://www.irs.gov/pub/irs-
tege/403b_lrm0313.pdf. The following are additional examples that illustrate the
application of section 8.03:
(1) A § 403(b) pre-approved plan may provide that the forms of annuity benefit
available under the plan are those described in the investment arrangements under the
plan. However, the terms of the basic plan document and adoption agreement or the
volume submitter plan, as applicable, must ensure that the required minimum
distribution requirements of § 401(a)(9) will be satisfied regardless of the form of benefit
paid, and the distributable events under the plan must be described in the basic plan
document and adoption agreement or the volume submitter plan, as applicable.
(2) A § 403(b) pre-approved plan may provide that hardship distributions of
elective deferrals are available to the extent permitted under each investment
arrangement under the plan. In this case, the basic plan document and adoption
agreement or the volume submitter plan must either provide that hardship distributions
are available only for the financial needs described in § 1.401(k)-1(d)(3)(iii)(B) or must
set forth nondiscriminatory and objective standards for determining the existence of an
immediate and heavy financial need. In addition, the basic plan document and adoption
agreement or the volume submitter plan must provide that the participant’s elective
deferrals will be suspended for 6 months following the hardship distribution and set forth
the other requirements that must be satisfied for a distribution to be treated as
necessary to satisfy the financial need. The terms of any agreement governing the
relationship between the vendor of an investment arrangement under the plan and the
employer must provide that the vendor will timely notify the employer of a participant’s
hardship distribution and the requirement to suspend the participant’s elective deferrals.

19

.04 A § 403(b) pre-approved plan includes the investment arrangements under
the plan in addition to the basic plan document and adoption agreement or the volume
submitter plan. Every § 403(b) pre-approved plan must therefore incorporate by
reference the terms of the investment arrangements under the plan. While the
Service’s review of an application for an opinion or advisory letter is limited to the terms
of the basic plan document and adoption agreement or the volume submitter plan, as
applicable, the terms of investment arrangements and other documents that are
incorporated by reference must satisfy applicable law and may not have any provisions
that are inconsistent with § 403(b). For example, if the forms of annuity benefit
available under a plan are described in investment arrangements under the plan, the
terms of the investment arrangements must satisfy, if applicable to the plan, the joint
and survivor annuity requirements of section 205 of ERISA and any applicable related
rules, such as rules relating to transfers of benefits that are subject to the joint and
survivor annuity requirement, and may not have any provisions that are inconsistent
with § 403(b).
.05 Every § 403(b) pre-approved plan must provide that, in the event of any
conflict between the terms of the pre-approved plan and the terms of investment
arrangements under the plan (or of any other documents incorporated by reference into
the plan), the terms of the pre-approved plan shall govern. Furthermore, an eligible
employer may not rely on an opinion or advisory letter issued with respect to a § 403(b)
pre-approved plan if any investment arrangement under the plan provides that the terms
of the investment arrangement shall govern in the event of any conflict between the
terms of the arrangement and the terms of the pre-approved plan. An eligible employer
that adopts a § 403(b) pre-approved plan should take this requirement into account in
considering investment arrangements to be offered under the plan as well as other
documents that may be incorporated by reference. Since the terms of investment
arrangements under a § 403(b) pre-approved plan must be incorporated by reference
into the plan and those arrangements may not have any provisions that are inconsistent
with § 403(b), plan terms that are required in a pre-approved plan under this section 8
or section 9 or 10 should not create a conflict with the terms of the investment
arrangements under a properly drafted § 403(b) pre-approved plan. If there
nevertheless is such a conflict, the terms of the pre-approved plan must control. For
sample plan language for § 403(b) pre-approved plans, see: http://www.irs.gov/pub/irs-
tege/403b_lrm0313.pdf.
.06 Every § 403(b) pre-approved plan must satisfy the requirements of
§§ 1.403(b)-1 through 1.403(b)-11, including the following requirements:
(1) The plan must contain all the material terms and conditions for eligibility,
benefits, applicable limitations, the investment arrangements available under the plan,
and the time and form under which benefit distributions will be made.
(2) The plan must satisfy the universal availability requirement with respect to
elective deferrals described in § 1.403(b)-5(b), unless the adopting eligible employer is
a Church or QCCO.

20

(3) The plan must limit the amount of compensation that can be taken into
account with respect to any contribution under the plan to the limitation in effect under
§ 401(a)(17), unless the adopting eligible employer is a Church or QCCO. The plan
may provide that, if the plan is a governmental plan, the transition rule in § 1.401(a)(17)-
1(d)(4)(ii) will be applied in determining the amount of a participant’s compensation that
may be taken into account.
(4) Unless the plan is designed by the prototype sponsor or volume submitter to
be available for adoption only as a governmental plan or by a Church or QCCO, the
plan must include terms that satisfy the applicable requirements of § 401(m) if the plan
provides for matching or other contributions that are subject to the requirements of
§ 401(m).
(5) The plan must set forth the terms governing all of the plan’s provisions
relating to benefits, including any hardship distributions and other distribution events,
loans, plan-to-plan transfers, contract-to-contract exchanges, and contributions and
rollovers into the plan that are available under the plan, and may incorporate by
reference the specific terms and conditions for those benefits set forth in the investment
arrangements.
.07 The plan may provide a vesting schedule for nonelective employer
contributions, rather than provide for full and immediate vesting of such contributions.
Except in the case of certain volume submitter plans, as described below, nonelective
employer contributions (and earnings thereon) under a § 403(b) pre-approved plan must
vest at least as rapidly as would be required to satisfy the minimum vesting
requirements of § 411(a)(2)(B), if the plan were a qualified plan under § 401(a), even if
the plan is not subject to the parallel minimum vesting requirements under section 203
of ERISA. A volume submitter plan document that is designed to be used for a plan that
is not subject to the minimum vesting requirements of section 203 of ERISA (for
example, because the plan is a governmental plan) is not required to provide that
nonelective employer contributions will vest at least as rapidly as would be required to
satisfy § 411(a)(2)(B). Every § 403(b) pre-approved plan that provides a vesting
schedule for nonelective employer contributions must also satisfy the following
requirements: (i) the portion of a participant’s 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; (ii) as
amounts in the participant’s 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 (iii) all nonvested amounts
remaining in the participant’s separate account must become nonforfeitable upon
termination of the plan.
.08 Every § 403(b) pre-approved plan must provide that an appendix to the plan
will identify the parties responsible for the various administrative functions under the
plan to comply with the requirements of § 403(b) and other tax requirements, including
the requirements that apply on the basis of the aggregated investment arrangements
issued to a participant under the plan, and will list all the vendors of investment

21

arrangements approved for use under the plan, including sufficient information to
identify the approved investment arrangements. Changes to the information in the
required appendix will not affect the employer’s ability to rely on an opinion or advisory
letter.
.09 Every § 403(b) pre-approved plan must provide a procedure for amendment
of the plan by the prototype sponsor or volume submitter practitioner, as applicable, so
that changes in the Code, regulations, revenue rulings, or other guidance published by
the Service, or corrections of prior approved plans, may be applied to all eligible
employers that have adopted the plan.
.10 Every § 403(b) pre-approved plan must provide that the prototype sponsor or
volume submitter, as applicable, will inform the adopting eligible employer of any
amendments made to the plan and will notify the employer of the discontinuance or
abandonment of the plan.
SECTION 9. ADDITIONAL PROVISIONS REQUIRED IN EVERY § 403(b)
PROTOTYPE PLAN
.01 Under § 1.415(f)-1(a)(3), all § 403(b) annuity contracts purchased by an
employer for a participant are treated as one § 403(b) annuity contract for purposes of
§ 415. Section 1.415(f)-1(f)(2) contains a special rule providing that, if a participant on
whose behalf a § 403(b) annuity contract is purchased is in control of any employer for
a limitation year, the § 403(b) annuity contract is aggregated with all other defined
contribution plans maintained by that employer. For these purposes, a custodial
account and a retirement income account are treated as a § 403(b) annuity contract.
Every § 403(b) prototype plan must include plan language reflecting these rules. In
particular, the plan language must coordinate the application of the § 415 limits to all the
§ 403(b) prototype plans of the adopting eligible employer and its related employers so
that, if the only § 403(b) plans maintained by the adopting employer and its related
employers are prototype plans, the plans will satisfy § 415(c) and § 1.415(f)-1(a)(3)
without requiring the addition of overriding plan language. Every § 403(b) prototype
plan must also allow the adopting eligible employer to add overriding language to the
adoption agreement if necessary to coordinate the application of the § 415 limits if the
adopting eligible employer or its related employers also maintain § 403(b) plans that are
not prototype plans. For this purpose, the term “related employers” means all
employers that are aggregated with the adopting eligible employer under § 414(b) and
(c) (each as modified by § 415(h)), (m), and (o), including § 1.414(c)-5. Sample
language provided in the Listing of Required Modifications (for § 403(b) plans) may be
downloaded from the Internet at the following address: http://www.irs.gov/pub/irs-
tege/403b_lrm0313.pdf.
.02 Every § 403(b) prototype plan must provide that the eligible employer will be
considered to have adopted an individually designed plan, and the eligible employer is
not entitled to reliance on an opinion letter issued with respect to the plan, if:

22

(1) the eligible employer amends any provision of the plan, including the adoption
agreement (other than (a) to change the choice of options in the adoption agreement,
(b) to add overriding language in the adoption agreement if necessary to satisfy § 415
because of the required aggregation of multiple plans, (c) to change information in the
required appendix described in section 8.08, or (d) to adopt sample or model
amendments published by the Service that specifically provide that their adoption by an
adopter of an approved § 403(b) prototype plan will not cause such plan to be treated
as individually designed); or
(2) the eligible employer chooses to discontinue participation in the plan as
amended by the prototype sponsor and does not substitute another approved § 403(b)
prototype plan.
.03 The adoption agreement of every § 403(b) prototype plan must satisfy the
following requirements:
(1) Although a single adoption agreement may be made available to different
categories of eligible employers, the adoption agreement must require the adopting
employer to show its status as an eligible employer by indicating whether the employer
is:
(a) a government-sponsored educational organization described in
§ 170(b)(1)(A)(ii) (a “public school”);
(b) a tax-exempt organization described in § 501(c)(3) which is exempt from tax
under § 501(a);
(c) an employer of a minister described in § 414(e)(5)(A); or
(d) a minister described in § 414(e)(5)(A).
(2) The adoption agreement 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:
(a) a governmental plan of a public school;
(b) a governmental plan of a tax-exempt organization described in § 501(c)(3);
(c) a plan of an employer that is a Church or QCCO; or
(d) a plan (other than a plan described in (a), (b), or (c)) of an employer that is a
tax-exempt organization described in § 501(c)(3).
(3) The adoption agreement must allow the adopting eligible employer to add
overriding plan language if necessary to satisfy § 415 because of the required
aggregation of multiple plans. See section 9.01.

23

(4) The adoption agreement must contain a dated employer signature line. The
eligible employer must sign the adoption agreement when it first adopts the plan and
must complete and sign a new adoption agreement if the plan has been restated. In
addition, the eligible employer must complete a new signature page if it modifies any
prior elections or makes new elections in its adoption agreement. The signature
requirement may be satisfied by an electronic signature that reliably authenticates and
verifies the adoption of the adoption agreement, or restatement, amendment or
modification thereof, by the eligible employer.
(5) The adoption agreement must state that it is to be used only with one specific
basic plan document, and must identify that document.
(6) The adoption agreement must contain a cautionary statement to the effect
that the failure to properly fill out the adoption agreement may result in failure of the plan
to satisfy the requirements of § 403(b). The Service expects that § 403(b) prototype
plan documents will be written in a manner designed to assist adopting eligible
employers in the correct completion of the adoption agreement.
(7) The adoption agreement must include the prototype sponsor’s name,
address, and telephone number (or a space for the address and telephone number of
the prototype sponsor’s authorized representative) for inquiries by adopting eligible
employers regarding the adoption of the plan, the meaning of plan provisions, or the
effect of the opinion letter.
.04 The adoption agreement of every nonstandardized § 403(b) prototype plan
must satisfy the following additional requirements:
(1) The adoption agreement must state that, unless the plan is a governmental
plan, a Church, or a QCCO, the plan must satisfy the requirements of §§ 401(a)(4) and
410(b) with respect to nonelective contributions under the plan on a continuing basis.
(2) The adoption agreement must state that the opinion letter may not be relied
upon with respect to whether the plan satisfies the requirements of §§ 401(a)(4) and
410(b).
SECTION 10. ADDITIONAL PROVISIONS REQUIRED IN EVERY § 403(b) PRE-
APPROVED PLAN INTENDED TO BE A RETIREMENT INCOME ACCOUNT UNDER
§ 403(b)(9)
.01 Every § 403(b) pre-approved plan that is intended to be a retirement income
account under § 403(b)(9) must state the intent to constitute a retirement income
account in accordance with § 1.403(b)-9(a)(2)(ii) and must satisfy the other
requirements of this section 10.
.02 The terms of the plan must satisfy the separate accounting, investment
performance, and exclusive benefit requirements of § 1.403(b)-9(a)(2)(i).

24

.03 If the plan provides for benefits in the form of a life annuity, the plan must
satisfy the present value and benefit guarantee requirements of § 1.403(b)-9(a)(5), and
the present value must be based on reasonable actuarial assumptions that are either
set forth in the plan or incorporated by reference into the plan.
SECTION 11. WHO CAN SPONSOR A § 403(b) PROTOTYPE PLAN OR A § 403(b)
VOLUME SUBMITTER SPECIMEN PLAN? WHO CAN BE A MASS SUBMITTER?
.01 A person is eligible to sponsor a § 403(b) prototype plan if the person (1) has
an established place of business in the United States where it is accessible during every
business day, and (2) expects at least 30 eligible employers to adopt its § 403(b)
prototype plan basic plan document(s). A Church-related organization is eligible to
sponsor a § 403(b) prototype plan that is intended to be a retirement income account
under § 403(b)(9), without regard to the number of eligible employers that are expected
to adopt the plan. A person eligible to sponsor a § 403(b) prototype plan may request
opinion letters for any number of basic plan documents and adoption agreements.
.02 A person is eligible to sponsor a § 403(b) volume submitter specimen plan if
the person (1) has an established place of business in the United States where it is
accessible during every business day and (2) expects at least 30 eligible employers to
adopt its § 403(b) volume submitter plan(s). A Church-related organization is eligible to
sponsor a § 403(b) volume submitter plan that is intended to be a retirement income
account under § 403(b)(9), without regard to the number of eligible employers that are
expected to adopt the plan. A person eligible to sponsor a § 403(b) volume submitter
specimen plan may request advisory letters for any number of specimen plans.
.03 Any person that has an established place of business in the United States
where it is accessible during every business day may sponsor a plan as a word-for-word
identical adopter or minor modifier of a § 403(b) prototype plan or as a word-for-word
identical adopter of a § 403(b) volume submitter specimen plan of a mass submitter,
regardless of the number of eligible employers expected to adopt the plan. A mass
submitter is any person that (1) has an established place of business in the United
States where it is accessible during every business day, and (2) submits opinion or
advisory letter applications on behalf of at least 30 prototype sponsors, or 30 volume
submitters, respectively, each of which is sponsoring, on a word-for-word identical
basis, the same basic plan document or specimen plan. A minor modifier means a
person that is sponsoring a § 403(b) prototype plan that is word-for-word identical to the
plan of a mass submitter, but for minor changes that do not require in-depth technical
review in order to issue an opinion letter. A § 403(b) prototype plan or volume submitter
specimen plan of a mass submitter must include language designating the mass
submitter as agent for the prototype sponsor or volume submitter for purposes of
making plan amendments. A mass submitter may request opinion or advisory letters for
any number of basic plan documents and adoption agreements or specimen plans.
.04 The filing of an application for an opinion or advisory letter for a § 403(b)
prototype plan or volume submitter specimen plan constitutes a representation that the
requirements in this section 11 are satisfied.

25

SECTION 12. DUTIES OF A PRE-APPROVED PLAN SPONSOR
.01 Except in the case of a Church-related organization that sponsors a § 403(b)
prototype plan intended to be a retirement income account under § 403(b)(9), a pre-
approved plan sponsor must maintain a written record of the eligible employers that
have adopted the plan and, upon written request, must provide the Service a list of the
names, addresses, and employer identification numbers of all eligible employers that, to
the best of the sponsor’s knowledge, have adopted the plan, other than employers that
ceased to maintain the plan as a prototype plan more than three years prior to the
request.
.02 Unless the pre-approved plan sponsor has withdrawn its opinion or advisory
letter application pursuant to section 18, notified the Service and adopting eligible
employers that it is abandoning the plan pursuant to section 19, or been notified by the
Service under section 20 that its opinion or advisory letter has been revoked, the pre-
approved plan sponsor must continue to maintain the approved status of the plan as
provided in section 16. Thus, the pre-approved plan sponsor must timely amend the
plan for changes in the Code, regulations, revenue rulings, or other guidance published
by the Service, and must apply for new opinion or advisory letters when required. The
pre-approved plan sponsor must provide to the eligible employer the plan and any
restatements thereof, all amendments and all opinion or advisory letters, and must
comply with the notice requirements under this procedure and any other written
guidance. The plan, restatements, amendments, and opinion or advisory letters may be
provided to adopting eligible employers electronically.
.03 The pre-approved plan sponsor must have a procedure to notify adopting
eligible employers of amendments and restatements of the plan and to inform the
employers, when applicable, of the need to timely adopt the plan in the case of both
initial adoption and restatement of the plan. The pre-approved plan sponsor must also
notify adopting employers that failure to timely adopt the plan or restatement, when
required, or failure to take into account plan amendments in the operation of the plan
could result in adverse tax consequences.
.04 The filing of an application for an opinion or advisory letter for a § 403(b) pre-
approved plan constitutes a representation that the pre-approved plan sponsor agrees
to comply with the requirements of this revenue procedure. Failure to do so may result
in the loss of eligibility to sponsor § 403(b) pre-approved plans and the revocation of
opinion or advisory letters that have been issued to the pre-approved plan sponsor.
.05 Also see section 16.03 regarding a pre-approved plan sponsor’s duty to
timely notify an adopting employer if the sponsor determines that the employer’s plan
may no longer satisfy the requirements of § 403(b).
SECTION 13. SCOPE OF AN OPINION OR ADVISORY LETTER
.01 An opinion or advisory letter for a § 403(b) pre-approved plan constitutes a
determination that the form of the plan documents, as adopted by a particular adopting

26

eligible employer, satisfies the requirements of § 403(b) only under the circumstances,
and to the extent, described in sections 14 and 15.
.02 The Service’s review of a pre-approved plan sponsor’s application for an
opinion or advisory letter for a § 403(b) pre-approved plan will consider only the terms of
the basic plan document and adoption agreement or the volume submitter plan, as
applicable. The Service’s review will not consider, and an opinion or advisory letter will
not express an opinion with respect to, the terms of any investment arrangements under
the plan of any adopting eligible employer or any other documents that may be
incorporated by reference into an adopting eligible employer’s plan.
.03 An opinion or advisory letter for a § 403(b) plan does not express an opinion,
and may not be relied upon, with respect to whether any plan is subject to the
requirements of Title I of ERISA or whether a plan satisfies any of those requirements.
.04 Opinion and advisory letters will not be issued for any of the following:
(1) TEFRA church defined benefit plans. (See § 1.403(b)-10(f)(2).)
(2) Plans grandfathered under Rev. Rul. 82-102, 1982-1 C.B. 62.
(3) Plans that include blanks or fill-in provisions for the eligible employer to
complete unless the provisions have parameters that preclude the eligible employer
from completing the provisions in a manner that could cause the plan to fail to satisfy
§ 403(b).
(4) Plans that incorporate by reference the limitations of § 415 or the ACP test of
§ 401(m)(2).
The Service may, in its discretion, decline to issue opinion or advisory letters for other
types of plans not described in this section 13.04. For example, in the case of a plan
that is subject to Title I of ERISA, the Service may, in its discretion, decline to issue an
opinion or advisory letter if the plan fails to satisfy a Code provision that is parallel to a
provision in Part 2 of Subtitle B of Title I of ERISA (such as §§ 410 and 411 of the
Internal Revenue Code).
SECTION 14. EMPLOYER RELIANCE ON AN OPINION LETTER
.01 Governmental plans and plans of Churches or QCCOs. An eligible employer
that adopts a § 403(b) prototype plan, whether standardized or nonstandardized, may
rely upon an opinion letter issued for the plan that the form of the adopting eligible
employer’s plan satisfies the requirements of § 403(b) if the plan is a governmental plan
or if the adopting eligible employer is a Church or QCCO. However, the issuance of an
opinion letter does not constitute a determination that the plan is a governmental plan or
that the adopting employer is a Church or QCCO.
.02 Standardized plans adopted by other § 501(c)(3) tax-exempt employers. An
eligible employer that adopts a standardized § 403(b) prototype plan that is not a

27

governmental plan or a plan of a Church or QCCO may rely upon an opinion letter
issued for the plan that the form of the adopting eligible employer’s plan satisfies the
requirements of § 403(b), including, if applicable, the requirements of §§ 401(a)(4) and
410(b), if (1) the only contributions under the plan are elective deferrals, or (2) the plan
provides for contributions other than elective deferrals, all of the employers in the
adopting eligible employer’s controlled group are eligible employers within the meaning
of § 1.403(b)-2(b)(8). If the plan provides for contributions other than elective deferrals
and the adopting eligible employer’s controlled group includes any employer that is not
an eligible employer within the meaning of § 1.403(b)-2(b)(8), the adopting eligible
employer may rely on the opinion letter, except with respect to whether nonelective
contributions under the plan satisfy the requirements of §§ 401(a)(4) and 410(b).
.03 Nonstandardized plans adopted by other § 501(c)(3) tax-exempt employers.
An eligible employer that adopts a nonstandardized § 403(b) prototype plan that is not a
governmental plan or a plan of a Church or QCCO may rely upon an opinion letter
issued for the plan that the form of the adopting eligible employer’s plan satisfies the
requirements of § 403(b), except with respect to whether nonelective contributions
under the plan satisfy the requirements of §§ 401(a)(4) and 410(b).
.04 No reliance on § 415 in certain circumstances. Notwithstanding the other
provisions of this section 14, an opinion letter issued for a § 403(b) prototype plan may
not be relied upon with respect to the requirements of § 415 if the adopting eligible
employer or any of its related employers maintains another § 403(b) plan covering any
of the same participants as the § 403(b) prototype plan, unless the other plan is also a
§ 403(b) prototype plan. For this purpose, the term “related employers” means all
employers that are aggregated with the adopting eligible employer under § 414(b) and
(c) (each as modified by § 415(h)), (m), and (o), including § 1.414(c)-5. (Also see
§§ 1.415(c)-1(d) and 1.415(f)-1(f) for special rules applicable to § 403(b) plans.)
.05 No reliance on inherently factual issues. An opinion letter for a § 403(b)
prototype plan also may not be relied upon with respect to issues of an inherently
factual nature, such as whether the effective availability of any benefits, rights, and
features is nondiscriminatory, or with respect to whether a plan satisfies the
requirements of §§ 401(a)(4) and 410(b) with respect to former employees.
SECTION 15. EMPLOYER RELIANCE ON AN ADVISORY LETTER
.01 In general. An eligible employer that adopts a § 403(b) volume submitter
plan may rely upon an advisory letter issued for the plan that the form of the adopting
eligible employer’s plan satisfies the requirements of § 403(b) except (i) to the extent
that the employer modifies the terms of the approved specimen plan (other than by
selecting options that are permitted under the terms of the approved specimen plan);
and (ii) if the plan is not a governmental plan or a plan of a Church or QCCO, with
respect to whether nonelective contributions under the plan satisfy the requirements of
§§ 401(a)(4) and 410(b). The issuance of an advisory letter does not constitute a
determination that the plan is a governmental plan or that the adopting employer is a
Church or QCCO.

28

.02 No reliance on § 415 in certain circumstances. Notwithstanding the other
provisions of this section 15, an advisory letter issued for a § 403(b) volume submitter
plan may not be relied upon with respect to the requirements of § 415 if the adopting
eligible employer or any of its related employers maintain another § 403(b) plan
covering any of the same participants as the § 403(b) volume submitter plan. For this
purpose, the term “related employers” means all employers that are aggregated with the
adopting eligible employer under § 414(b) and (c) (each as modified by § 415(h)), (m),
and (o), including § 1.414(c)-5. (Also see §§ 1.415(c)-1(d) and 1.415(f)-1(f) for special
rules applicable to § 403(b) plans.)
.03 No reliance on inherently factual issues. An advisory letter for a § 403(b)
volume submitter plan also may not be relied upon with respect to issues of an
inherently factual nature.
SECTION 16. MAINTENANCE OF APPROVED STATUS
.01 A § 403(b) pre-approved plan must be amended by the pre-approved plan
sponsor and, if necessary, the adopting eligible employer(s), to retain its approved
status if any provisions therein fail to meet the requirements of § 403(b) as a result of a
change in the Code, regulations, revenue rulings, or other guidance published by the
Service. The Service expects future guidance to require the restatement of every
§ 403(b) pre-approved plan by the pre-approved plan sponsor every six years. Upon
issuance of a new opinion or advisory letter for the restated plan, adopting eligible
employers would generally be required to adopt the restated plan (by completing a new
adoption agreement, in the case of a prototype plan).
.02 As provided in section 8.05, every § 403(b) pre-approved plan must provide
that, in the event of any conflict between the terms of the pre-approved plan and the
terms of investment arrangements under the plan (or of any other documents
incorporated by reference into the plan), the terms of the pre-approved plan shall
govern. An eligible employer may not rely on an opinion or advisory letter issued with
respect to a § 403(b) pre-approved plan if any investment arrangement under the plan
provides that the terms of the investment arrangement shall govern in the event of any
conflict between the terms of the arrangement and the terms of the pre-approved plan.
Employers and their advisors should take this requirement into account in considering
any investment arrangements to be offered under a § 403(b) pre-approved plan.
.03 If a pre-approved plan sponsor determines that a § 403(b) pre-approved plan
as adopted by an eligible employer may no longer satisfy the requirements of § 403(b)
and the pre-approved plan sponsor does not or cannot correct the failure to satisfy
§ 403(b) under the self-correction or voluntary correction components of the Employee
Plans Compliance Resolution System (EPCRS), the pre-approved plan sponsor must
notify the eligible employer that the plan may no longer satisfy § 403(b), advise the
eligible employer that adverse tax consequences may ensue, and inform the eligible
employer about the availability of EPCRS. See Rev. Proc. 2013-12, 2013-4 IRB 313.
This section 16.03 does not impose a requirement on a pre-approved plan sponsor to
monitor an adopting employer’s plan’s compliance with the requirements of § 403(b),

29

but it provides that the pre-approved plan sponsor has a duty to inform the adopting
employer if the sponsor has knowledge that the employer’s plan may no longer satisfy
those requirements.
SECTION 17. HOW TO APPLY FOR AN OPINION OR ADVISORY LETTER
.01 The Service will accept applications for opinion and advisory letters for
§ 403(b) pre-approved plans beginning June 28, 2013.
.02 A separate application is required for each adoption agreement that is offered
for adoption by a prototype sponsor and each specimen plan of a volume submitter.
For example, assume a pre-approved plan sponsor maintains three volume submitter
specimen plans and two prototype plan basic plan documents. One of the volume
submitter plans does not use an adoption agreement, another has only one adoption
agreement, and the third has two adoption agreements. Assume that there are three
adoption agreements that may be used with each prototype plan basic plan document.
In this case, the pre-approved plan sponsor must submit 10 separate applications, four
applications for the volume submitter plans and six applications for the prototype plans.
.03 An application for an opinion letter for a § 403(b) prototype plan may be filed
by a prototype sponsor, by a mass submitter with respect to its mass submitter plan, or
by a mass submitter on behalf of a word-for-word identical adopter or minor modifier of
the mass submitter’s plan. An application for an advisory letter for a § 403(b) volume
submitter specimen plan may be filed by a volume submitter practitioner, by a mass
submitter with respect to its mass submitter plan, or by a mass submitter on behalf of a
word-for-word identical adopter of the mass submitter’s plan. The Service is developing
forms for these applications and will issue an announcement when the forms become
available. Until such time as the forms are available, an application for an opinion or
advisory letter for a § 403(b) prototype or specimen plan may be made by submitting
the plan to the Service along with a completed and signed “Application for Approval of
§ 403(b) Pre-approved Plan,” as provided in the appendix to this revenue procedure.
The applicable user fee, determined under section 6.03 or section 6.04 of
Rev. Proc. 2013-8, 2013-1 I.R.B. 237, as if the application were for a master and
prototype plan or a § 401(a) volume submitter plan, respectively, must also be included
with the application. The request is to be sent to:
Internal Revenue Service
Commissioner, TE/GE
Attention: SE:T:EP:RA
P.O. Box 27063
McPherson Station
Washington, DC 20038
.04 In the case of an initial submission of a mass submitter’s basic plan
document or specimen plan under this revenue procedure, the mass submitter’s
application(s) must also be accompanied by applications for opinion or advisory letters
filed on behalf of at least 30 word-for-word identical adopters of the basic plan

30

document or specimen plan, as applicable, unless the mass submitter has already
satisfied this requirement in connection with a previous application under this revenue
procedure involving another basic plan document or specimen plan, as applicable.
After satisfying the 30 word-for-word identical adopter requirement, the mass submitter
may submit additional applications on behalf of other pre-approved plan sponsors that
wish to adopt a word-for-word identical plan, or, in the case of a § 403(b) prototype plan,
a minor modifier plan. In addition, the mass submitter may then submit requests for
opinion or advisory letters for its other § 403(b) prototype or specimen plans, as
applicable, regardless of the number of identical adopters of such other plans. Until
such time as the application forms are available, Appendix A must be completed,
signed, and included with each application that is submitted on behalf of an identical
adopter or minor modifier. The applicable user fee, determined under section 6.03 or
6.04 of Rev. Proc. 2013-8, as if the application were for a master and prototype plan or
a § 401(a) volume submitter plan, respectively, must also be included with the
application.
.05 Sample plan language to be used in drafting § 403(b) pre-approved plans is
available from Employee Plans Rulings and Agreements. Such language is not
automatically required in § 403(b) pre-approved plans, but should be used as a guide in
drafting such plans. To expedite the review of their plans, pre-approved plan sponsors
are encouraged to use the Service’s sample plan language and to identify if such
language is being used in their plan documents. The sample plan language may be
downloaded from the Internet at the following address: http://www.irs.gov/pub/irs-
tege/403b_lrm0313.pdf.
.06 A failure to disclose a material fact or misrepresentation of a material fact in
the application may adversely affect the reliance that would otherwise be obtained
through issuance by the Service of an opinion or advisory letter. Similarly, failure to
accurately provide any of the information called for on any form required by this revenue
procedure may result in no reliance.
.07 The Service may, at its discretion, require any additional information that it
deems necessary in connection with its review of a § 403(b) pre-approved plan. If a
letter requesting changes to plan documents is sent to the pre-approved plan sponsor
or an authorized representative, a response to any questions raised or any material
requested must be received no later than 30 days from the date of the letter, and the
response must include either a copy of the plan with the changes highlighted or, if the
changes are not extensive, replacement pages. If the changes are not received within
30 days, the application may be considered withdrawn. An extension of the 30-day time
limit will be granted for good cause, as determined by the Service.
.08 The Service will return, without further action, plans that are not in substantial
compliance with the approval requirements or plans that are so deficient that they
cannot be reviewed in a reasonable amount of time. A plan may be considered not to
be in substantial compliance if, for example, it omits an applicable Code section,
contains conflicting provisions, or merely incorporates by reference an applicable Code
section. The Service will not consider these plans until after they are revised, and they

31

will be treated as new requests as of the date they are resubmitted. No additional user
fee will be charged if an inadequate submission is amended to be in substantial
compliance and is resubmitted to the Service within 30 days following the date the pre-
approved plan sponsor is notified of the inadequacy.
.09 If the plan document submitted as part of an opinion or advisory letter request
contains a provision that gives rise to an issue for which the Service determines that
contrary published authority exists, failure to disclose and address the significant
contrary authority may result in requests for additional information, which will delay
action on the request.
.10 An opinion or advisory letter issued to a pre-approved plan sponsor is not
transferable to any other entity. For this purpose, a change of employer identification
number is deemed to be a change of entity.
.11 A change only in a pre-approved plan sponsor’s name is not deemed to be a
change of entity. However, the pre-approved plan sponsor must notify the Service in
writing of the change in name and certify that it still meets the conditions for sponsorship
described in section 11. No opinion or advisory letter will be issued and no user fee will
be required for a mere change in name.
SECTION 18. WITHDRAWAL OF REQUESTS
.01 A pre-approved plan sponsor may withdraw its request for an opinion or
advisory letter at any time prior to the issuance of such letter by notifying EP Rulings
and Agreements in writing of such withdrawal. The notification is to be sent to the
address in section 17.03. The pre-approved plan sponsor must also notify each eligible
employer that has adopted the plan that the request has been withdrawn. Such an
eligible employer will be deemed to have an individually designed plan.
.02 Even though a request is withdrawn, EP Rulings and Agreements will retain
all correspondence and documents associated with that request and will not return them
to the pre-approved plan sponsor. EP Rulings and Agreements may furnish its views
concerning the approval status of the plan to EP Examinations, which has audit
jurisdiction over the returns of the eligible employers that have adopted the plan.
SECTION 19. ABANDONMENT OF SPONSORSHIP OF § 403(b) PLANS
.01 A pre-approved plan sponsor must notify EP Rulings and Agreements in
writing of a § 403(b) pre-approved plan that is no longer used by any eligible employer
and which the pre-approved plan sponsor no longer intends to offer for adoption. Such
written notification is to be sent to the address in section 17.03 and should refer to the
file folder number appearing on the latest opinion or advisory letter issued.
.02 A pre-approved plan sponsor that intends to abandon a § 403(b) pre-
approved plan that is in use by any adopting eligible employer must inform each
adopting eligible employer that the form of the plan has been terminated, that the
eligible employer’s plan will become an individually designed plan (unless the eligible

32

employer adopts another § 403(b) pre-approved plan), and that any employer reliance
will not continue if there is a change in § 403(b), the regulations, revenue rulings, or
other guidance published by the Service. After so informing all adopting eligible
employers, the pre-approved plan sponsor must notify EP Rulings and Agreements in
accordance with section 19.01.
SECTION 20. REVOCATION
An opinion or advisory letter found to be in error or not in accord with the current
views of the Service may be revoked. However, except in rare or unusual
circumstances, such revocation will not be applied retroactively if the conditions set forth
in sections 13 and 14 of Rev. Proc. 2013-4, 2013-1 I.R.B. 126 (disregarding references
therein to §§ 7428 and 7476) are met. For this purpose, opinion and advisory letters will
be given the same effect as rulings. Revocation may be effected by a notice to the pre-
approved plan sponsor to which the letter was originally issued or by publication in the
Internal Revenue Bulletin. The pre-approved plan sponsor should then notify each
adopting eligible employer of the revocation as soon as possible. The content of the
notification to each adopting eligible employer must explain how the revocation affects
any reliance an adopting eligible employer has on the applicable opinion or advisory
letter.
SECTION 21. RETROACTIVE REMEDIAL AMENDMENT
.01 Effective January 1, 2009, a contract (that is, an annuity contract, custodial
account, or retirement income account) does not satisfy the requirements of § 403(b)
unless the contract is maintained pursuant to a written plan that, in both form and
operation, satisfies the requirements of the 2007 regulations. The transition relief in
Notice 2009-3 sets forth conditions under which a § 403(b) plan will not be treated as
failing to satisfy the requirements of § 403(b) during the 2009 calendar year. The relief
in Notice 2009-3 applies solely with respect to the 2009 calendar year.
.02 This section 21 allows an eligible employer to retroactively correct defects in
the form of its written § 403(b) plan (including any defects in documents incorporated by
reference into the plan) in order to satisfy the written plan requirement in the 2007
regulations by timely adopting a § 403(b) pre-approved plan or by otherwise timely
amending its plan. For this purpose, a defect in the form of a plan is a provision, or the
absence of a required provision, that causes the plan to fail to satisfy the requirements
of § 403(b). Under this remedial amendment provision, an eligible employer must
amend its plan to the extent necessary to correct any form defects retroactive to the first
day of the plan’s remedial amendment period. For this purpose, “the first day of the
plan’s remedial amendment period” means the later of January 1, 2010, or the effective
date of the plan.
.03 The form of a plan will be treated as satisfying the requirements of the 2007
regulations as of the first day of the plan’s remedial amendment period if (1) on or
before such day, the eligible employer adopts a written plan that is intended to satisfy
the requirements of § 403(b), and (2) on or before the last day of the remedial

33

amendment period, the employer amends the plan, including any investment
arrangements and any other documents incorporated by reference into the plan, to the
extent necessary to correct any form defects retroactive to the first day of the remedial
amendment period. The latter requirement is automatically satisfied (except to the
extent any documents incorporated by reference into the plan must be amended) if the
employer retroactively adopts a § 403(b) pre-approved plan with an opinion or advisory
letter on or before the last day of the remedial amendment period. (An eligible employer
that timely amends its plan is not required, but may nevertheless choose, to amend its
plan retroactive to January 1, 2009. However, for purposes of Notice 2009-3 and
whether the Service will treat the eligible employer’s § 403(b) plan as satisfying the
requirements of § 403(b) during the 2009 calendar year, only the plan that was adopted
on or before December 31, 2009 and in effect on that date, will be taken into account.)
.04 For purposes of this section 21, a § 403(b) pre-approved plan with an opinion
or advisory letter means a plan for which an opinion or advisory letter is issued pursuant
to a timely filed application under this revenue procedure. An application for an opinion
or advisory letter under this revenue procedure is timely filed if (a) the application is filed
with the Service by April 30, 2014, or (b) for word-for-word identical adopters or minor
modifiers of mass submitter plans, the opinion or advisory letter application for the mass
submitter plan is filed with the Service April 30, 2014, irrespective of when the opinion or
advisory letter application for the identical adopter or minor modifier plan is filed.
.05 The Service will announce, in subsequent guidance, the date that will be the
last day of the remedial amendment period for all eligible employers for purposes of this
section 21. The guidance will be published in conjunction with the issuance of opinion
and advisory letters pursuant to timely filed applications under this revenue procedure.
The Service expects that the announced date will provide every eligible employer a
period in excess of one year from the date of the announcement during which to either
adopt a pre-approved § 403(b) plan with an opinion or advisory letter or otherwise
amend its plan. Persons wishing to comment on the expected subsequent guidance
should submit comments in writing by October 28, 2013. Written comments may be
sent to CC:PA:LPD:PR (Rev. Proc. 2013-22), Room 5203, Internal Revenue Service,
POB 7604, Ben Franklin Station, Washington, D.C. 20044. Comments may be hand
delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to
CC:PA:LPD:PR (Rev. Proc.2013-22), Courier’s Desk, Internal Revenue Service, 1111
Constitution Ave., NW, Washington, D.C. Alternatively, comments may be submitted
via the Internet to notice.comments@irscounsel.treas.gov
(Rev. Proc.2013-22).
.06 For purposes of this section 21, a “written plan that is intended to satisfy the
requirements of § 403(b)” includes both a new plan that is intended to satisfy those
requirements and an existing plan that has been amended with the intent of satisfying
those requirements, including a plan that is based on the model plan language in Rev.
Proc. 2007-71 and a plan that is an adoption of a § 403(b) pre-approved plan that has
been timely submitted for an opinion or advisory letter under this revenue procedure.
SECTION 22. EFFECT ON OTHER DOCUMENTS

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.01 The definition of “opinion letter” in section 3.05 of Rev. Proc. 2013-4 is
modified to provide that an opinion letter also includes a written statement issued by
Employee Plans Rulings and Agreements to a prototype plan sponsor as to the
acceptability, for purposes of § 403(b), of the form of a § 403(b) prototype plan. See
Rev. Proc. 2013-22.
.02 The definition of “advisory letter” in section 3.11 of Rev. Proc. 2013-4 is
modified to provide that an advisory letter also includes a written statement issued by
Employee Plans Rulings and Agreements to a volume submitter practitioner as to the
acceptability, for purposes of § 403(b), of the form of a § 403(b) specimen plan. See
Rev. Proc. 2011-49 and Rev. Proc. 2013-22.
.03 Rev. Proc. 2013-8 is modified to provide that the user fee for an application
for an opinion or advisory letter for a § 403(b) pre-approved plan is the fee that would
apply under section 6.03 or 6.04 of that revenue procedure if the application were for an
opinion letter for a § 401(k) prototype plan or an advisory letter for a § 401(a) volume
submitter plan.
SECTION 23. EFFECTIVE DATE
This revenue procedure is effective April 29, 2013.
SECTION 24. PAPERWORK REDUCTION ACT
The collections of information contained in this revenue procedure have been
reviewed and approved by the Office of Management and Budget in accordance with
the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–1520.
An agency may not conduct or sponsor, and a person is not required to respond
to, a collection of information unless the collection of information displays a valid OMB
control number.
The collections of information in this revenue procedure are in sections 9.03(3),
12, 16, 17, 18.01, 19, 20, and 21. This information is required to obtain advance
approval from the Service of the form of prototype and similar plans. Employers will
adopt these preapproved plans to satisfy requirements of 26 U.S.C. 403(b).
This information will be used to enable the Service to make determinations that the form
of a written plan satisfies the requirements of 26 U.S.C. 403(b) and is entitled to
favorable tax treatment. The collections of information are voluntary, to obtain a benefit.
The likely respondents are insurance companies, other financial institutions, law,
actuarial and consulting firms, employee benefit practitioners, and nonprofit institutions.
The estimated total annual reporting and/or recordkeeping burden is 26,471
hours.
The estimated annual burden per respondent/recordkeeper varies from ½ to
2,000 hours depending on individual circumstances, with an estimated average of 3.56
hours. The estimated number of respondents and/or recordkeepers is 7444.

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The estimated annual frequency of responses is on occasion.
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.
Generally tax returns and tax return information are confidential, as required by 26
U.S.C. 6103.
DRAFTING INFORMATION
The principal authors of this revenue procedure are Angelique Carrington and
James P. Flannery of the Employee Plans, Tax Exempt and Government Entities
Division. For further information regarding this revenue procedure, please contact the
Employee Plans taxpayer assistance answering service at 1–877–829–5500 (a toll-free
number) or e-mail Ms. Carrington or Mr. Flannery at RetirementPlanQuestions@irs.gov
.

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APPENDIX
Application for Approval of § 403(b) Pre-approved Plan

1. Enter amount of user fee submitted: $
2. Name of applicant:
a. EIN:
b. Address:
c. Phone:
3. Person to contact:
a. Phone:
b. Email address:
c. Power of attorney attached?
4. Type of applicant (check one):
_____a. Prototype sponsor
_____b. Prototype mass submitter
_____c. Volume submitter practitioner
_____d. Volume submitter mass submitter
_____e. Identical adopter of mass submitter plan
_____f. Minor modifier of mass submitter prototype plan
5. Form of plan (check one);
_____a. Prototype plan
_____b. Volume submitter specimen plan without adoption agreement
_____c. Volume submitter specimen plan with adoption agreement
6. If the plan is a prototype plan, indicate whether the plan is a (check one):
_____a. Standardized plan
_____b. Nonstandardized plan
7.a. Prototype plan basic plan document number (Each of the prototype sponsor’s or
prototype mass submitter’s basic plan documents must be assigned a 2-digit number,
starting with 01. Enter the number you have assigned to the basic plan document that
is associated with the adoption agreement for which this application is filed.):
7.b. Prototype plan adoption agreement number (Each different adoption agreement
associated with a single basic plan document must be assigned a 3-digit number,
beginning with 001. Enter the number you have assigned to the adoption agreement for
which this application is filed.):
7.c. Volume submitter specimen plan number (Each of the volume submitter
practitioner’s or volume submitter mass submitter’s specimen plans must be assigned a
2-digit number, starting with 01. Enter the number you have assigned to the specimen
plan for which this application is filed.):

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7.d. Volume submitter plan adoption agreement number, if applicable (Each different
adoption agreement associated with a single specimen plan must be assigned a 3-digit
number, beginning with 001. Enter the number you have assigned to the adoption
agreement for which this application is filed.):
8. If 4.e. or 4.f. is checked, complete the following information for the mass submitter’s
plan on which this application is based, to the extent the information is available when
this application is filed:
a. Name of mass submitter:
b. File folder number:
c. Letter serial number:
d. Date of letter:
e. Basic plan document number or specimen plan number (if b, c, and d not available):
f. Adoption agreement number, if applicable (if b, c, and d not available)
9. Investment arrangement(s) permitted under the prototype or specimen plan:
_____a. Annuity contracts issued by an insurance company
_____b. Custodial accounts
_____c. Retirement income account
10. Type(s) of contributions permitted under the prototype or specimen plan:
_____a. Elective deferrals (other than Roth)
_____b. Roth elective deferrals
_____c. After-tax employee contributions
_____d. Matching contributions
_____e. Other nonelective employer contributions
11. Are the following documents included with the application:
a. Basic plan document or specimen plan?
b. Adoption agreement (if the application is for a prototype plan or for a specimen plan
that uses an adoption agreement)?
12. If 4.a. or 4.c. is checked, do you expect at least 30 eligible employers to adopt your
§ 403(b) prototype plan basic plan documents(s) or volume submitter specimen plan(s)?
13. If 4.b. or 4.d. is checked, are applications on behalf of at least 30 prototype
sponsors or volume submitters who are sponsoring the identical basic plan document or
specimen plan included with this application?
14. If the answer to 13. is “no,” enter the enter the number of the basic plan document
or specimen plan for which the requirement described in 13. is met:
15. Applicant’s signature under penalties of perjury (required if 4a, b, c, or d checked):
Under penalties of perjury, I declare that I have examined this application,
including accompanying statements, and to the best of my knowledge and belief it is
true, correct, and complete.

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39
Signature: Title: Date:
16. Prototype sponsor’s or volume submitter’s and mass submitter’s signatures under
penalties of perjury (required if 4e or 4f checked):
Under penalties of perjury, I declare that the prototype sponsor or volume
submitter practitioner identified in line 2 of this application has adopted a prototype plan
or a specimen plan that is identical to the mass submitter plan identified in line 7 or, in
the case of a prototype plan, is a minor modifier of the mass submitter plan identified in
line 7.
Prototype sponsor’s or volume submitter’s signature:
Title: Date:
Mass submitter’s signature:
Title: Date: