403(b) private letter rulings

[Guest eba]

Is there any written guidance from the IRS about requesting a private letter ruling for a 403(B) plan (since determination letters aren't issued for these plans)? Can non-standardized prototype plans get a PLR?

[mbozek]

PLRs are quite expensive to request from the IRS and also you must pay for cost of preparing the request.The standards for requesting a plr are no different that the requirements for any othe ruling under the IRC. What is there about the plan that requires a PLR? 403(B) plans do not require IRS approval and cannot be not disqualified in the sense that qualified plans are because they have no assets held in trust. If the plan permits salary reduction for all employees who work 20 or more hours a week and follows the nondiscrimination rules for employer contributions it will meet the only nondiscriminaton requirements to defer the contributions. Also a 403(B) plan can only invest in annuity contaracts or mutual funds. A prototype plan should have been prepared in acordance with the tax laws and should not need a plr. Qualified counsel should be able to review the plan and determine if the plan meets the requirements of 403(B).