Advisory Committee on Tax Exempt and Government Entities (ACT ...

Improving the Employee Plans Compliance Resolution System: A Roadmap For Greater Compliance4. Expansion of EPCRS to Permit Correction of 403(b) Plan DocumentFailuresFinal regulations under Code section 403(b) for the first time impose a written planrequirement on 403(b) plans effective January 1, 2009. 97 EPCRS already allows for thecorrection of Operational Failures arising under 403(b) plans. EPCRS in its current formalso refers to, and allows for, correction of Plan Document Failures. The current PlanDocument Failure corrections are all limited to tax-qualified plans, however, since therewas previously no plan documentation requirement that applied to 403(b) plans.The ACT recommends that EPCRS be amended to permit that Plan Document Failuresarising under the Code section 403(b) written plan document requirement are eligible fortwo types of corrections: first, a Plan Sponsor that fails to comply should be able toadopt a plan document, and second, a Plan Sponsor should be able to correct adeficiency in a plan document.97 See Treas. Reg. §§ 1.403(b)-3(b)(3), -11(a) (2007).ADVISORY COMMITTEE ON TAX EXEMPT AND GOVERNMENT ENTITIES (ACT) June 11, 2008 44