Employee Plans Compliance Unit (EPCU) - Featured Project - 403(b) Universal Availability - Frequently Asked Questions |
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These frequently asked questions and answers are provided for general information only and should not be cited as any type of legal authority. They are designed to provide the user with information responsive to general inquiries. Due to the uniqueness and complexities of Federal tax law, it is imperative to ensure a full understanding of the specific question presented, and to perform the requisite research to ensure a correct response is provided.
- Does the 403(b) Universal Availability Closing Letter always require schools to make contributions to tax-sheltered annuity plans?
- Should the Taxpayer advise the EPCU that correction has been made?
- The closing letter refers to a period of relief for 240 days, is this the time permitted for self-correction?
Does the 403(b) Universal Availability Closing Letter always require schools to make contributions to tax-sheltered annuity plans?
No. The letter is sent to schools where contributions may be necessary to keep the section 403(b) plans qualified. It is an educational tool designed to assist schools in determining whether or not they meet the Universal Availability rule and to explain the appropriate correction methods, if needed.
Should the Taxpayer advise the EPCU that correction has been made?
Not at this time, but this information may be requested in the future as part of a follow-up EPCU project or an examination.
The closing letter refers to a period of relief for 240 days, is this the time permitted for self-correction?
Yes. This period begins from the date on the closing letter and ends 240 calendar days later. To avoid a sanction due to a Universal Availability failure identified by the EPCU, self-correction needs to be appropriately completed during this time period.
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Page Last Reviewed or Updated: May 02, 2008