Fix A Decade Of Document Errors? Yes You Can!

Seyfarth Synopsis: In two months (on March 31, 2020), the window closes for 403(b) plan sponsors to take advantage of the unique opportunity to retroactively amend their 403(b) retirement plans to correct document errors retroactively all the way back to January 1, 2010. After March 31, 2020, 403(b) plans likely will be subject to amendment deadlines that mirror 401(k) plans unless otherwise announced by the IRS.

Many may remember that as part of Treasury's final 403(b) regulations that became effective in 2009, tax-exempt employers maintaining a 403(b) vehicle were required to adopt a written 403(b) plan document by January 1, 2010. Further, certain changes in laws or regulations may result in a requirement that a retirement plan (including a 403(b) plan) be amended. When that happens, the sponsor has a period of time (referred to as a "remedial amendment period") in which to adopt the amendment necessary to reflect the legislative or regulatory change.