SECTION 3. SUMMARY OF

SIGNIFICANT MODIFICATIONS

.01 This revenue procedure modifies Rev. Proc. 2016-37 to permit Plan Sponsors to submit determination letter applications for section 403(b) individually designed plans. Beginning June 1, 2023, determination letter applications for section 403(b) individually designed plans generally may be submitted for an initial plan determination, for a determination upon plan termination, and in certain other circumstances identified by the IRS in guidance published in the IRB. However, the date on which an application may first be submitted for an initial plan determination is staggered over three dates (June 1, 2023, June 1, 2024, and June 1, 2025), depending on the last digit of the Plan Sponsor’s employer identification number (EIN), in accordance with the schedule set forth in section 12.01.

.02 This revenue procedure modifies the definition of form defect, as set forth in Rev. Proc. 2019-39, with respect to a provision in, or an absence of a provision

from, a section 403(b) plan that is integral to a change in Section 403(b) Requirements. In addition, this revenue procedure modifies the structure of the definition of form defect, as set forth in Rev. Proc. 2019-39. See section 4.01(2). .03 This revenue procedure incorporates the provisions of Rev. Proc. 201939 relating to the Remedial Amendment Period for section 403(b) individually designed plan Form Defects first occurring after June 30, 2020. See section 5.02(2).

.04 This revenue procedure extends the expiration of the Remedial Amendment Period for a Disqualifying Provision with respect to a provision of a new plan or the absence of a provision from a new plan to the last day of the second calendar year following the calendar year in which the plan is put into effect. ⁵ See section 5.03(1) (a).

.05 This revenue procedure extends the expiration of the Remedial Amendment Period for a Disqualifying Provision with respect to a provision of a new governmental plan within the meaning of section 414(d) or the absence of a provision from such a plan to the later of: (1) the last day of the second calendar year following the calendar year in which the plan is put into effect; or (2) 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins after the end of the plan’s initial plan year. ⁶ See section 5.03(2)(a). .06 This revenue procedure modifies the eligibility rules for a Plan Sponsor to obtain an individual plan determination. Under the revised rules, for example, a Plan Sponsor that maintains a plan for which a determination letter has been issued as a result of filing a Form 5307 (Application for Determination for Adopters of Modified Volume Submitter Plans) is no longer ineligible to submit that plan for a determination letter for an initial plan determination on a Form 5300 ( Applica- tion for Determination for Employee Ben- efit Plan ). ⁷ See section 9.02.

5 Section 5.05(1) of Rev. Proc. 2016-37 provides that the remedial amendment period for a disqualifying provision with respect to a provision of a new plan or the absence of a provision from a new plan is extended to the later of: (1) the 15th day of the 10th calendar month after the end of the plan’s initial plan year or (2) the “modified section 401(b) expiration date,” which is defined in section 5.05(1)(a) and (b) of Rev. Proc. 2016-37.

6 Section 5.06(1) of Rev. Proc. 2016-37 provides that the remedial amendment period for a disqualifying provision with respect to a provision of a new governmental plan within the meaning of section 414(d) or the absence of a provision from such a plan is extended to the later: of (1) the date determined in section 5.05(1) of Rev. Proc. 2016-37 or (2) 90 days after the close of the second regular legislative session of the legislative body with the authority to amend the plan that begins after the end of the plan’s initial plan year.

7 Under section 4.03(1) of Rev. Proc. 2016-37, an employer that maintained a plan for which a determination letter had been issued as a result of filing a Form 5307 was not permitted to submit that plan for a determination letter for initial qualification.

Bulletin No. 2022–47 489 November 21, 2022

.07 This revenue procedure modifies the scope of the IRS’s review of individually designed plans submitted for a determination letter. Under the revised rules, the IRS generally will consider in its review Qualification Requirements and Section 403(b) Requirements that are in effect, or that have been included on a Required Amendments List, on or before the last day of the second calendar year preceding the year in which the determination letter application is submitted. See section 10.01.