SECTION 4. DEFINITIONS

.01 General definitions . (1) Disqualifying Provision . (a) In general . For a qualified plan, the term “Disqualifying Provision” means:

(i) a provision of a new plan, the absence of a provision from a new plan, or an amendment to an existing plan that causes the plan to fail to satisfy the requirements of the Code applicable to the qualification of the plan as of the date the plan or amendment is first made effective;

(ii) a plan provision that has been designated, pursuant to § 1.401(b)-1(b)(3), by the Commissioner, in guidance published in the IRB, as a disqualifying provision by reason of a change in those requirements; or

(iii) the absence from a plan of a provision required by (or, if applicable, integral to) a change in the qualification requirements of the Code.

(b) Designation of Disqualifying Pro- visions . Pursuant to § 1.401(b)-1(b)(3), the IRS designates a plan provision as a Disqualifying Provision if it:

(i) results in the failure of the plan to satisfy the qualification requirements of the Code by reason of a change in those requirements that is effective after December 31, 2001; or

(ii) is integral to a Disqualifying Provision described in section 4.01(1)(b)(i).

(2) Form Defect . For a section 403(b) plan, the term “Form Defect” means:

(a) a provision of a new plan, the absence of a provision from a new plan, or an amendment to an existing plan that causes the form of the section 403(b) plan to fail to satisfy the Section 403(b) Requirements applicable as of the date the plan or amendment is first made effective;

(b) a plan provision that: (i) results in the failure of the form of the section 403(b) plan to satisfy the Section 403(b) Requirements by reason of a change in those requirements; or

(ii) is integral to a Form Defect described in section 4.01(2)(b)(i); or

(c) the absence from a plan of a provision required by (or, if applicable, integral to) a change in the Section 403(b) Requirements.

(3) Plan Sponsor . The term “Plan Sponsor” means an employer that sponsors a qualified individually designed plan for its employees or an eligible employer, as described in section 403(b)(1)(A), that sponsors a section 403(b) individually designed plan for its employees.

(4) Qualification Requirements . The term “Qualification Requirements” means the requirements of sections 401(a), 403(a), 409, and 4975(e)(7), including requirements provided in the Code, and in regulations or other guidance published in the IRB. ⁸

(5) Remedial Amendment Period . The term “Remedial Amendment Period” means the period during which a Plan Sponsor maintaining a qualified plan or section 403(b) plan may correct Disqualifying Provisions or Form Defects in its plan retroactive to the beginning of the period. As part of the correction of a Disqualifying Provision or Form Defect within the remedial amendment period, a Plan Sponsor will be considered to have satisfied the Qualification Requirements or Section 403(b) Requirements, as applicable, if all provisions of the plan that are necessary to satisfy those requirements have been adopted and made effective in form and operation from the beginning of the remedial amendment period.

(6) Section 403(b) Requirements . The term “Section 403(b) Requirements” means the requirements of section 403(b), including requirements provided in the Code, and in regulations or other guidance published in the IRB. ⁹

.02 Definitions related to Merged Plans . (1) Date of a Corporate Merger, Acqui- sition, or Other Similar Business Trans- action . The term “Date of a Corporate Merger, Acquisition, or Other Similar Business Transaction” means the effective date of the transaction as evidenced by a corporate board resolution or written documentation signed and dated by persons duly authorized to represent the entities involved.

(2) Date of the Plan Merger . The term “Date of the Plan Merger” means the effective date of the Plan Merger as evidenced by (a) a corporate board resolution or written documentation signed and dated by persons duly authorized to represent the entities involved, or (b) a plan amendment.

(3) Merged Plan . The term “Merged Plan” means a plan that results from the merger or consolidation of two or more qualified plans into a single qualified individually designed plan pursuant to a Plan Merger.

(4) Plan Merger . The term “Plan Merger” means a merger or consolidation, as described in § 1.414(l)-1(b)(2), that combines two or more qualified plans maintained by previously Unrelated Entities into a single individually designed plan, and that occurs in connection with a corporate merger, acquisition, or other similar business transaction among Unrelated Entities that each maintained its own plan or plans prior to the Plan Merger.

(5) Unrelated Entities . The term “Unrelated Entities” means entities that are not members of the same controlled group under section 414(b), the same set of trades or businesses under common control under section 414(c), or members of the same affiliated service group under section 414(m).

8 Under this definition, a change in Qualification Requirements includes a statutory, regulatory, or other guidance change that affects a requirement of section 401(a), 403(a), 409, or 4975(e) (7), without regard to whether the change results in a Disqualifying Provision or merely permits the adoption of a discretionary amendment.

9 Under this definition, a change in Section 403(b) Requirements includes a statutory, regulatory, or other guidance change that affects a requirement of section 403(b), without regard to whether the change results in a Form Defect or merely permits the adoption of a discretionary amendment.

November 21, 2022 490 Bulletin No. 2022–47