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austin3515

403b pre-approved non-amenders

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Has anyone heard if the IRS is going to come out with any non-amender program as a means of allowing these non-profits to correct the fact that they did not restate by 6/30th?  Already have someone in that situation (not a client I should point out!).

It occurred to me that they did away with all the $325 VCP options so I do wonder if there will be anything...

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I haven't heard anything. I had the same question about three weeks ago - hopefully they will come out with something, but I speculate that given the long lead-up to this, plus the extension granted already, that they might not be as inclined to grant additional relief as in the past.

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Well I get sticking it to for profit business, but some of these non-profits, especially the ones too small to hire big law firms, are out doing God's work as they say, so it seems like they really ought not stick it these organizations.  Youre not punishing the "bad owner" you're punishing the people who rely on the org for services.

So anyway, I am optimistic the IRS will see it that way.  No guarantees of course, but I'm still waiting with hope!

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Greetings!   I have "feelers" out to all my attorney friends and some significant 403(b) vendors, etc.  I am starting to get such plans in and would love to be able to tell them that this is going to be cheaper than $3,000! (over $500,000 in assets is not a very big plan for many of these).  No one has yet heard of a program for reducing these fees for 403(b) plans in these situations.

One such attorney said to put them on the Pre-Approved Document right away... that it cannot hurt.

I will post on here if/ when I hear anything helpful.

PNJ

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30 minutes ago, Patricia Neal Jensen said:

One such attorney said to put them on the Pre-Approved Document right away... that it cannot hurt.

That;s exactly what I told this person to do! And then wait and see if anything comes out, even if they say nothing is coming...  They have to address it.  They;ve spoiled us over the years so they know we're looking for it.

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Agreed - we had someone come to us with one of these, and I told them that the first thing, regardless of whatever may come after, is to adopt an updated document immediately.

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21 hours ago, austin3515 said:

That;s exactly what I told this person to do! And then wait and see if anything comes out, even if they say nothing is coming...  They have to address it.  They;ve spoiled us over the years so they know we're looking for it.

Are you having success in getting pre-approved plan sponsors to let clients use their plans?  We've had issues in the past with some of them saying they won't let you use their documents if your plan is already out of compliance.

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