SECTION 10. EFFECTIVE DATE

This revenue procedure is effective December 17, 2007.

DRAFTING INFORMATION

The principal author of this revenue procedure is Robert Architect of the Employee Plans, Tax Exempt and Government Entities Division. For further information regarding this revenue procedure, please contact the Employee Plans taxpayer assistance telephone service at (877) 829–5500 (a toll-free number) between the hours of 8:30 am and 4:30 pm Eastern Time, Monday through Friday. Mr. Architect may be e-mailed at RetirementPlanQuestions@irs.gov .

ceases to receive contributions before January 1, 2009 ( e.g., due to the issuer having been discontinued as an issuer under the plan, the employer having ceased to exist, or the issuer having become an issuer under the plan due to the contract having been issued in a post-September 24, 2007 exchange permitted under Rev. Rul. 90–24, 1990–1 C.B. 97), those contracts continue to be subject to the requirements of § 403(b) and the 2007 regulations to the extent applicable. However, pursuant to this revenue procedure, a § 403(b) plan will not be treated as failing to satisfy the requirements of § 1.403(b)–3(b)(3) if the plan does not include terms relating to those contracts. If the participant or beneficiary requests a loan from the contract in accordance with § 72(p)(2), this relief applies only if the issuer makes such a loan only after the issuer has made reasonable efforts to determine: (1) whether the participant or beneficiary has in the prior 12 months had any other outstanding loans from qualified employer plans of the employer (taking into account §§ 72(p)(2)(D) and 72(p)(5)); and (2) if the participant or beneficiary has had any such loans, the highest outstanding balance of such loans during that period. For this purpose, assuming the employer is still in existence at the time of the loan, mere reliance on information from the participant or beneficiary about outstanding loans does not constitute reasonable efforts to determine whether the participant or beneficiary has other outstanding loans from plans of the employer.

The special rules in this section 8.02 apply only with respect to a contract that has been issued before January 1, 2009, under a § 403(b) plan that is held on behalf of a participant who, on January 1, 2009, is a former employee of the employer or for a beneficiary. For this purpose, the issuer can rely on information from the participant as to whether the participant is a former employee, assuming that reliance on that information is not unreasonable under the facts and circumstances.

8.03. Re-exchange back into plan . If, after September 24, 2007 and before January 1, 2009, a contract is issued in an exchange permitted under Rev. Rul. 90–24 (an “intermediate contract”) and, before July 1, 2009, the contract is exchanged in accordance with Rev. Rul. 90–24 for a contract issued by an issuer which is either receiving contributions as part of the plan or has an information sharing agreement as set forth in § 1.403(b)–10(b)(2)(i)(C)( 1 ) and ( 2 ) of the 2007 regulations, then the information sharing conditions in § 1.403(b)–10(b)(2)(i)(C)( 1 ) and ( 2 ) of the 2007 regulations do not apply to the intermediate contract.

8.04. Information sharing agreements . The model plan in this revenue procedure includes optional provisions in Section 6.4(a) through (d) to allow contract exchanges with an issuer that is not receiving contributions. See Section 6.4(d) of the model language for the type of information that would satisfy the information sharing agreement conditions in § 1.403(b)–10(b)(2)(i)(C)( 1 ) and ( 2 ) of the 2007 regulations.