According to IRS Rules and Regulations and Notice 2009-3, 403(b) plans were required to have a written plan in place by December 31, 2009. The IRS has released Revenue Procedure 2013-12 which provides guidance on how to correct certain plan and operational failures of 403(b) plans. The Revenue Procedure states that if the 403(b) plan sponsor goes under the Voluntary Correction Program (VCP) prior to December 31, 2013 to correct the failure to adopt a written plan; the filing fee will be reduced by 50%. Fees are determined by the number of participants under the plan and must be included with the VCP submission to the IRS.
The Retirement Plan Solutions team at Baker Tilly is available to assist you in complying with the written plan requirement and other operational failures of your 403(b) Plan.