SECTION 5. USE OF THE MODEL

PLAN LANGUAGE BY EMPLOYERS THAT ARE NOT PUBLIC SCHOOLS

.01 The model plan language in the Appendix to this revenue procedure is designed for use by a public school employer with respect to its employees. The model language is intended for a basic plan under which contributions are limited to pre-tax elective deferrals (without any designated Roth, employer matching, or other employer nonelective contributions). An eligible employer that is not a public school may use the provisions of the Appendix as sample language to comply with one or more of the requirements imposed by the 2007 regulations issued under § 403(b). .02 Because the model plan language in the Appendix has been designed for a State or local government with respect to its employees performing services for a public school, a § 501(c)(3) organization must determine the extent to which the model language is appropriate for use in connection with its § 403(b) plan to comply with one or more of the requirements imposed by the regulations issued under § 403(b). Notes in the Appendix identify the principal provisions which require modification for use by an eligible employer that is not a public school maintaining a § 403(b) arrangement. Moreover, if an eligible employer that is not a public school uses the model language in the Appendix, additional or revised provisions may be necessary or appropriate in order to comply with the 2007 regulations and, if applicable, ERISA, especially if either (i) the plan is not limited to elective deferrals, (ii) the plan is designed to not be an employee pension benefit plan under ERISA in accordance with 29 CFR 2510.3–2(f) of the Department of Labor

Regulations, or (iii) the plan is maintained by a church (or a church-related organization described in § 414(e)(3)(A) or a qualified church-controlled organization under § 3121(w)(3)(B)) or applies with respect to one or more ministers. ¹

.03 Adoption of the model plan language contained in the Appendix by an eligible employer that is not a public school does not have the same status as a private letter ruling with respect to the adopted language. However, if an eligible employer that is not a public school has received from the IRS a favorable private letter ruling under § 403(b), then, except as provided in section 5.02 of this revenue procedure, the eligible employer’s adoption of appropriate plan model language contained in the Appendix will not result in the loss of its reliance on the private letter ruling for periods prior to the effective date of the 2007 regulations.