Authors, Eleanor Banister, Atlanta, +1 404 572 4930, ebanister@kslaw.com and James P. Cowles*, Atlanta, +1 404 572 3455, jcowles@kslaw.com.
Tax exempt employers who sponsor 403(b) plans were generally required to adopt a written plan document by December 31, 2009. If a written document was not timely adopted, the employer may take advantage of the IRS Voluntary Correction Program (VCP) to correct the failure.
The standard VCP correction fee ranges from $750 (20 or fewer participants) to $25,000 (over 10,000 participants). But the IRS has reduced the fee for late adopters of a written 403(b) plan document by 50% until December 31, 2013. The IRS Voluntary Correction Program Submission Kit for 403(b) plan sponsors who missed the December 31, 2009 deadline is here.
