New chart: Pre-approved Plan Eligibility Checklist
(Posted on December 27, 2023 by )


The IRS maintains pre-approved plan programs (1) for retirement plans described in I.R.C. § 401(a) (qualified plans), and (2) for annuity contracts or custodial accounts described in I.R.C. § 403(b) (403(b) plans). A new chart shows what types of plans are and are not eligible to use the pre-approved plan program.

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New article: Executive Compensation Arrangements for Tax-Exempt Organizations
(Posted on December 6, 2023 by )


Tax-exempt organizations face special legal challenges in developing compensation packages for their executives. A new article, Executive Compensation Arrangements for Tax-Exempt Organizations, published in the Lexis Practice Advisor provides practical guidance on developing benefits for executives of nonprofits.

This article is divided into the following main topics:

  • Executive compensation considerations for tax-exempt entities
  • Excise Tax on Excess Executive Compensation
  • Deferred compensation rules
  • Severance pay
  • Vacation and sick leave plans
  • Performance bonuses and other nonfixed payments
  • Fringe benefits

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New article: 403(b) Plan Design and Compliance
(Posted on December 6, 2023 by )


A new article, Section 403(b) Plan Design and Compliance, discusses the rules that apply when eligible tax-exempt organizations establish tax-sheltered annuities, custodial accounts, or retirement income accounts, as described in Section 403(b) of the Internal Revenue Code (403(b) plans).

This article addresses the following topics:

  • 403(b) Plan Overview
  • Eligible Employers and Employee>
  • ERISA Coverage of 403(b) Plans
  • Qualification Requirements
  • 403(b) Plan Contributions
  • 403(b) Plan Distributions
  • Implementation and Operation
  • Correcting 403(b) Plan Errors
  • Terminating 403(b) Plans
  • EP Subcommittee Report: 403(b) Plan Issues and Recommendations
  • Advantages and Disadvantages of 403(b) Plans

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New Article: Pre-Approved 403(b) Plans
(Posted on December 6, 2023 by )


On November 21, 2023, the IRS issued Rev. Proc. 2023-37, substantially updating its guidance on preapproved retirement programs described in Internal Revenue Code (I.R.C.) § 403(b) (403(b) plans). A new article, Pre-Approved 403(b) Plans, discusses preapproved 403(b) plans, including their advantages, legal pitfalls, and other issues that an eligible employer may consider when determining whether to convert its existing 403(b) plan into a preapproved plan.

The major topics are:

  • What Is a 403(b) Plan?
  • What Are the Advantages of a Preapproved 403(b) Plan?
  • What Are the Legal Pitfalls of a Preapproved 403(b) Plan?
  • What Operational Issues Can Arise for a Preapproved Plan?
  • What Practical Issues Can Arise for a Preapproved Plan?
  • When Should an Employer Adopt a Preapproved 403(b) Plan?
  • Can the Employer Cure Past Plan Issues by Adopting a Preapproved 403(b) Plan?
  • What Should an Employer Do If It Did Not Comply with the Written Plan Document Requirement in the Past?

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New article: Pre-approved Plan Design and Compliance
(Posted on December 5, 2023 by )


With the IRS cutting back on determination letters for individually designed plans, more and more employers are switching to pre-approved plans. An article recently published in the Lexis Practice Advisor, Pre-Approved Plan Design and Compliance, discusses practical considerations involved with such plans. Topics include:

  • Pre-approved Plan Designs and Favored Regulatory Status
  • General Advantages and Disadvantages of Pre-approved Plans
  • Types and Requirements of Pre-Approved Plans
  • Limitations on Plans That May Be Pre-approved
  • Pre-approved Plan Providers
  • Implementing Pre-Approved Plans
  • Obtaining IRS Opinion Letters

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