Church Alliance files letter with IRS requesting expedited guidance on amending 403(b)(9) plans for QCCO and Non-QCCO Participation (July 15, 2020)


The 2019 SECURE Act clarified that both QCCOs and non-QCCOs can participate in 403(b)(9) plans.  This was a provision for which the Church Alliance had been advocating for years.   On June 26, 2020, the Church Alliance requested the Internal Revenue Service to issue guidance allowing pre-approved volume submitter 403(b)(9) plans to be amended with a “snap on” amendment to allow QCCO and non-QCCO employers to participate in these pre-approved plans.  It also asked that the remedial amendment period expiring on June 30, 2020 for these plans be extended for QCCOs and non-QCCOs newly adopting plans.  A draft snap-on amendment accompanied the request. 

The letter also pointed out a discrepancy raised by the reference to “commercial annuity” in the so-called “stretch IRA” provision in the SECURE Act. The Church Alliance asked the IRS to clarify that annuity payments under a 403(b)(9) retirement income account may be treated as a commercial annuity for purposes of the grandfathering provisions relating to stretch IRAs.