SECTION 4. DEFINITIONS

(h) The consequences of a Provider failure to disclose a material fact are changed to match the rules for a Provider failure to disclose a material fact with respect to a Section 403(b) Pre-approved Plan. See section 14.11.

(i) The consequences of a Mass Submitter’s failure to identify a modification are changed to match the rules for a Mass Submitter’s failure to identify a modification with respect to a Section 403(b) Pre-approved Plan. See section 15.03(2)(c).

(j) The requirements for a Provider of a discontinued plan are changed to match the rules for a discontinued plan with respect to a Section 403(b) Pre-approved Plan. See section 21.02.

(3) For Section 403(b) Pre-approved Plans .

(a) The integral amendment portion of the definition of Form Defect is changed to better match the Qualified Pre-approved Plan rules for a Disqualified Provision. See section 4.03(2).

(b) The requirements for a Standardized Section 403(b) Pre-approved Plan that provides only for elective deferrals are updated to add requirements regarding hardship distributions and § 415 language. See section 9.07(1) and (2).

(c) The requirements for a Standardized Section 403(b) Pre-approved Plan that provides for contributions other than elective deferrals are changed so that the requirements of section 9.07(3) (b) apply only to contributions other than elective deferrals. See section 9.07(3)(b).

(d) The rules for when an Opinion Letter will not be issued with respect to a Section 403(b) Preapproved Plan are changed to better match the rules for when an Opinion Letter will not be issued with respect to a Qualified Pre-approved Plan and to provide that an Opinion Letter will not be issued for (i) a plan designed to satisfy the provisions of § 105, (ii) a plan that includes § 401(h) accounts, and (iii) a plan that includes purported fail-safe provisions for § 401(a)(4) or the average benefit test under § 410(b). See section 10.02(1).

(e) The rules for an Adopting Employer of a Section 403(b) Pre-approved Plan that applies for a determination letter are updated to better match the Qualified Pre-approved Plan rules for determination letter applications. See section 25.

.01 General definitions . For purposes of this revenue procedure, the following definitions apply to all Pre-approved Plans.

(1) Adopting Employer . The term “Adopting Employer” means an Employer that adopts a Preapproved Plan offered by a Provider.

(2) Adoption Agreement Plan. The term “Adoption Agreement Plan” means a plan that consists of a basic plan document and an adoption agreement. The basic plan document includes all the nonelective provisions applicable to all Adopting Employers, and the adoption agreement includes the options that may be selected by each Adopting Employer. No options (including blanks to be completed) may be provided in the basic plan document portion of the Adoption Agreement Plan (except as set forth in section 15.03 regarding Flexible Plans).

(3) Cycle. The term “Cycle” means a Remedial Amendment Cycle, as defined in section 4.01(17).

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(4) Discretionary Amendment . The term “Discretionary Amendment” means an amendment that is not an Interim Amendment.

(5) Employer . The term “Employer” means an employer that sponsors a Qualified Pre-approved Plan for its employees or an eligible employer, as described in § 403(b)(1)(A), that sponsors a Section 403(b) Pre-approved Plan for its employees.

(6) Employer Adoption Window. The term “Employer Adoption Window” means the period during which an Adopting Employer must adopt a newly approved Pre-approved Plan for a Cycle, and is also generally the period during which an Adopting Employer of a newly approved Pre-approved Plan may submit an application for a determination letter (if otherwise permitted). See section 5.02 regarding the Employer Adoption Window and section 25 regarding determination letters.

(7) Flexible Plan. The term “Flexible Plan” means a plan submitted by a Mass Submitter that includes optional provisions (as described in section 15.03(1)(b)).

(8) Governmental Plan. The term “Governmental Plan” means a governmental plan within the meaning of § 414(d).

(9) Interim Amendment . The term “Interim Amendment” means an amendment to correct a Disqualifying Provision or a Form Defect that results in the failure of a Pre-approved Plan to satisfy a Qualification Requirement or Section 403(b) Requirement, as applicable, by reason of a change in that requirement, or an amendment that is integral to that Disqualifying Provision or Form Defect. See section 6.04.

(10) Mass Submitter . The term “Mass Submitter” means any person that (a) has an established place of business in the United States where it is accessible during every business day, and (b) submits Opinion Letter applications on behalf of 15 unaffiliated Providers, each of which is offering, on a word-for-word identical basis, the same plan. A Flexible Plan that is offered by a Provider is considered a plan that is word-for-word identical. For purposes of determining whether 15 unaffiliated Providers offer, on a word-for-word identical basis, the same Pre-approved Plan, a Mass Submitter that is also a Provider is treated as an unaffiliated Provider. For purposes of this definition, affiliation is determined under § 414(b) and (c). Additionally, any law firm, accounting firm, consulting firm, or similar organization is considered to be affiliated with its partners, members, associates, or similar affiliated persons. A Mass Submitter is treated as a Mass Submitter with respect to all of its plans, provided the 15-unaffiliated-Provider requirement is met with respect to at least one plan. See section 15 for rules relating to a Mass Submitter’s plans.

(11) Minor Modification. The term “Minor Modification” means a minor change to an otherwise word-for-word identical Pre-approved Plan of the Mass Submitter that the IRS determines does not require an in-depth IRS technical review. For example, a change from five-year 100% vesting to three-year 100% vesting is a minor modification for a defined benefit plan. On the other hand, a change in the method of accrual of benefits in a defined benefit plan would not be considered a Minor Modification.

(12) Nonstandardized Plan . The term “Nonstandardized Plan” means a Pre-approved Plan that is not a Standardized Plan.

(13) Opinion Letter . The term “Opinion Letter” means a written statement issued by the IRS to a Provider or Mass Submitter that the form of a Qualified Pre-approved Plan or a Section 403(b) Pre-approved Plan satisfies the Qualification Requirements or the Section 403(b) Requirements, respectively, that are being reviewed by the IRS for the Cycle for which the Opinion Letter is being issued.

(14) Pre-approved Plan . The term “Pre-approved Plan” means a plan (including a plan that is word-for-word identical to, or a Minor Modification of, a Mass Submitter’s plan) that has received an Opinion Letter under this revenue procedure (or a predecessor of this revenue procedure) and

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that is made available by a Provider for adoption by Employers. A Pre-approved Plan includes a plan covering self-employed individuals. A Pre-approved Plan may be either a Qualified Preapproved Plan or a Section 403(b) Pre-approved Plan. A Qualified Pre-approved Plan or a Section 403(b) Pre-approved Plan may be either a Standardized Plan or a Nonstandardized Plan. A Qualified Pre-approved Plan or a Section 403(b) Pre-approved Plan may be structured as either an Adoption Agreement Plan or a Single Document Plan.

(15) Provider .

(a) The term “Provider” means any person (including, if applicable, a Mass Submitter) that:

(i) Has an established place of business in the United States where it is accessible during every business day, and

(ii) Represents to the IRS in its application for an Opinion Letter that it has at least 15 Employerclients (except as set forth in section 4.01(15)(a)(ii)(A) regarding a Retirement Income Account), each of which is reasonably expected to adopt one of the Provider’s Pre-approved Plans.

(A) A person that is otherwise eligible to be a Provider generally may apply for an Opinion Letter for a Section 403(b) Pre-approved Plan that is intended to be a Retirement Income Account without satisfying the 15‑Employer-client requirement with respect to that plan. However, if that person also applies for an Opinion Letter with respect to a Section 403(b) Pre-approved Plan that is not a Retirement Income Account, the person would need to meet the 15-Employer-client requirement for the plan that is not a Retirement Income Account.

(B) The IRS reserves the right to request from the Provider at any time a list of the Employers that have adopted or are expected to adopt the Provider’s plans, including the Employers’ business addresses and employer identification numbers.

(b) Notwithstanding the preceding provisions of this section 4.01(15), any person that has an established place of business in the United States where it is accessible during every business day may offer a plan that is word-for-word identical to a Mass Submitter’s plan as an identical adopter or a plan that includes Minor Modifications to a Mass Submitter’s plan as a minor modifier adopter regardless of the number of Employers that are expected to adopt the plan. See section 15 for rules relating to a Mass Submitter’s plans, including procedures for identical adopters and minor modifier adopters of a Mass Submitter’s plans.

(c) By submitting an application for an Opinion Letter for a Pre-approved Plan under this revenue procedure (or by having an application filed on its behalf by a Mass Submitter as an identical adopter or a minor modifier adopter), a person represents to the IRS that it is a Provider, and that it agrees to comply with any requirements imposed on Providers by this revenue procedure. Failure to comply with these requirements may result in the loss of eligibility to offer Pre-approved Plans and the revocation of Opinion Letters that have been issued to the Provider.

(16) Related Employers. For a Pre-approved Plan other than a Section 403(b) Pre-approved Plan that is a Governmental Plan, the term “Related Employer” means an employer that is aggregated with the Adopting Employer under § 414(b), (c), (m), and (o) and the regulations thereunder. For a Section 403(b) Pre-approved Plan that is a Governmental Plan, the term “Related Employer” means an employer that is aggregated with the Adopting Employer in a manner consistent with Notice 89-23, 1989‑1 CB 654.

(17) Remedial Amendment Cycle. The term “Remedial Amendment Cycle” means the time period designated by the IRS during which (1) a Provider submits a proposed Pre-approved Plan for review and approval by the IRS, (2) the plan, once approved, is adopted by Employers, and (3) an Adopting Employer of a newly approved Pre-approved Plan generally may submit an application for a determination letter (if otherwise permitted). See section 5.

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(18) Remedial Amendment Period. The term “Remedial Amendment Period” means the period during which an employer maintaining a plan may correct Disqualifying Provisions or Form Defects, as applicable, in its plan retroactive to the beginning of that period. As part of the correction of a Disqualifying Provision or a Form Defect within the applicable Remedial Amendment Period, an Adopting Employer is 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. See section 6.

(19) Single Document Plan. The term “Single Document Plan” means a plan offered by a Provider that consists of a single plan document without an adoption agreement. A Single Document Plan may include alternate paragraphs and options that may be selected by an Adopting Employer (including blanks to be completed by the Adopting Employer in accordance with specified parameters).

(20) Standardized Plan . The term “Standardized Plan” means a Pre-approved Plan that satisfies the requirements set forth in section 9.03 or 9.07, as applicable. A Qualified Pre-approved Plan that includes an ESOP or that is a Statutory Hybrid Plan may not be a Standardized Plan.

(21) Submission Period. The term “Submission Period” means the period during which a Provider (including a Mass Submitter) may apply for an Opinion Letter for a particular Cycle. See section 5.02; also see section 16 regarding filings made after the Submission Period.

.02 Definitions applicable solely to Qualified Pre-approved Plans . For purposes of this revenue procedure, the following definitions apply to Qualified Pre-approved Plans and do not apply to Section 403(b) Pre-approved Plans.

(1) Disqualifying Provision .

(a) In general . For a Qualified Pre-approved 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, pursuant to § 1.401(b)‑1(b)(3), has been designated 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 Provisions . 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 4.02(1)(b)(i).

(2) Qualified Pre-approved Plan . The term “Qualified Pre-approved Plan” means a Pre-approved Plan that is intended to meet the Qualification Requirements.

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(3) Qualification Requirements . The term “Qualification Requirements” means the requirements of §§ 401(a), 403(a), 409, and 4975(e)(7), including requirements provided by statute, or in regulations or other guidance published in the IRB. ⁶

(4) Trust or Custodial Account Document . The term “Trust or Custodial Account Document” means the separate portion of a Qualified Pre-approved Plan that includes the trust agreement or custodial account agreement and includes provisions covering such matters as the powers and duties of trustees, investment authority, and the kinds of investments that may be made. All provisions of the Trust or Custodial Account Document must be applicable to all Adopting Employers of that trust or custodial account. The trust agreement or custodial account agreement must be in a document separate from the plan document that is submitted for an Opinion Letter.

(5) Definitions related to ESOPs .

(a) ESOP . The term “ESOP” means an employee stock ownership plan within the meaning of § 4975(e)(7).

(b) Exempt Loan . The term “Exempt Loan” means a loan described in § 4975(d)(3) that satisfies the requirements for exemption from the excise tax imposed under § 4975(a) and (b) described in § 54.4975‑7(b).

(c) Readily Tradable Employer Securities . The term “Readily Tradable Employer Securities” means publicly traded securities as defined in § 1.401(a)(35)‑1(f)(5).

(6) Definitions related to Hybrid Plans .

(a) Cash Balance Formula . The term “Cash Balance Formula” means a statutory hybrid benefit formula, as defined in § 1.411(a)(13)-1(d)(4), that is used to determine all or any part of a participant’s accumulated benefit, and under which the accumulated benefit provided under the formula is expressed as the current balance of a hypothetical account maintained for the participant. The hypothetical account balance generally consists of Principal Credits and Interest Credits.

(b) Cash Balance Plan . The term “Cash Balance Plan” means a defined benefit plan that includes a Cash Balance Formula.

(c) Conversion Amendment . The term “Conversion Amendment” means an amendment defined in § 1.411(b)(5)-1(c)(4). Under this regulation, a conversion amendment is an amendment (i) that reduces or eliminates the benefits that, but for the amendment, a participant would have earned after the effective date of the amendment under a benefit formula that is not a statutory hybrid benefit formula within the meaning of § 1.411(a)(13)-1(d)(4), and (ii) with respect to which, after the effective date of the amendment, all or a portion of the participant’s benefit accruals under the plan are determined under a statutory hybrid benefit formula.

(d) Interest Credit . The term “Interest Credit” means an interest credit as defined in § 1.411(b) (5)-1(d)(1)(ii)(A). Under this regulation, an interest credit is an adjustment to a participant’s hypothetical account balance for a period that is not conditioned on service and that is determined by applying a rate of interest or rate of return to the participant’s hypothetical account balance as of the beginning of the period.

(e) Offset . The term “Offset” means the reduction of benefits under an Employer’s defined benefit plan by an amount attributable to the benefits payable under another plan of the Employer.

6 Under this definition, a change in Qualification Requirements includes a change provided by statute, or in regulations or other guidance published in the IRB, that affects a requirement of § 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.

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(f) Principal Credit . The term “Principal Credit” means a principal credit as defined in § 1.411(b) (5)-1(d)(1)(ii)(D), which includes any increase in a participant’s hypothetical account balance that is not an Interest Credit.

(g) Statutory Hybrid Plan . The term “Statutory Hybrid Plan” means a defined benefit plan that includes a statutory hybrid benefit formula as defined in § 1.411(a)(13)‑1(d)(4).

(h) Variable Annuity Plan . The term “Variable Annuity Plan” means any defined benefit plan that includes a variable annuity benefit formula as defined in § 1.411(a)(13)-1(d)(6).

.03 Definitions applicable solely to Section 403(b) Pre-approved Plans . For purposes of this revenue procedure, the following definitions apply to Section 403(b) Pre-approved Plans, and do not apply to Qualified Pre-approved Plans:

(1) Church. The term “Church” means a church within the meaning of § 3121(w)(3)(A).

(2) Form Defect. 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 § 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 § 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 4.03(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) Investment Arrangement. The term “Investment Arrangement” means a funding arrangement under a Section 403(b) Pre-approved Plan. An Investment Arrangement may be an annuity contract under § 1.403(b)-2(b)(2), a custodial account under § 403(b)(7), or a Retirement Income Account.

(4) Non-qualified Church-Controlled Organization or Non-QCCO. The term “Non-qualified Church-Controlled Organization” or “Non-QCCO” means a church-controlled tax-exempt organization described in § 501(c)(3) that is not a QCCO.

(5) Qualified Church-Controlled Organization or QCCO. The term “Qualified Church-Controlled Organization” or “QCCO” means a church-controlled tax-exempt organization described in § 501(c)(3) that is a qualified church-controlled organization within the meaning of § 3121(w) (3)(B).

(6) Retirement Income Account. The term “Retirement Income Account” means a defined contribution program established or maintained by a Church, including an organization described in § 414(e)(3)(A), to provide benefits under § 403(b) for an employee described in § 403(b)(1) (including an employee described in § 414(e)(3)(B)) or his or her beneficiaries, as described in § 403(b)(9).

(7) Section 403(b) Pre-approved Plan . The term “Section 403(b) Pre-approved Plan” means a Preapproved Plan that is intended to meet the Section 403(b) Requirements.

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(8) Section 403(b) Requirements. The term “Section 403(b) Requirements” means the requirements of § 403(b), including requirements provided in the Code, or in regulations or other guidance published in the IRB. ⁷