By Mark Smith and
Vanessa ScottIn Private Letter Ruling 201142033 (July 25, 2011), the Internal Revenue Service (IRS) ruled that the IRC § 403(b) universal availability requirement was not violated merely because (i) a university system made available two classes of annuity providers and (ii) some employees could access both classes of providers, and other employees could access only one class.
The IRS explained that the § 403(b) universal availability requirement - generally, that all employees have an effective opportunity to make elective deferrals pursuant to a salary reduction agreement - is not violated merely because some employees have more deferral options than others. The ruling expressly:
The ruling was issued two years after it was requested.
If you have any questions about this Legal Alert, please feel free to contact any of the attorneys listed below or the Sutherland attorney with whom you regularly work.
Adam B. Cohen
Jamey A. Medlin
Joanna G. Myers
Robert J. Neis
Vanessa A. Scott
W. Mark Smith
William J. Walderman
Carol A. Weiser
© 2011 Sutherland Asbill & Brennan LLP. All Rights Reserved.This communication is for general informational purposes only and is not intended to constitute legal advice or a recommended course of action in any given situation. This communication is not intended to be, and should not be, relied upon by the recipient in making decisions of a legal nature with respect to the issues discussed herein. The recipient is encouraged to consult independent counsel before making any decisions or taking any action concerning the matters in this communication. This communication does not create an attorney-client relationship between Sutherland and the recipient.
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