Internal Revenue Bulletin 2013-18 (PDF rendition): IRS Revenue Procedures

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

Bulletin No. 201
3-18
April 29, 2013
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
REG–120391–10, page 1005.
Proposed regulations would amend the rules regarding cover-
age for certain preventive services without cost sharing un-
der the Patient Protection and Affordable Care Act. The pro-
posed rules would amend the authorization to provide an ex-
emption for group health plans established or maintained by
certain religious employers (and group health insurance cover-
ageprovidedinconnectionwithsuchplans)withrespecttothe
requirement to cover contraceptive services. The proposed
rules would also establish accommodations for group health
plans established or maintained by eligible organizations (and
group health insurance coverage offered in connection with
such plans), including student health insurance coverage ar-
ranged by eligible organizations that are religious institutions
of higher education.
Notice 2013–27, page 985.
This notice provides the maximum vehicle values for use with
the special valuation rules under regulation section 1.61-21(d)
and (e) for 2013. These values are adjusted for inflation and
must be adjusted annually by reference to the Consumer Price
Index.
EMPLOYEE PLANS
Rev. Proc. 2013–22, page 985.
This revenue procedure sets forth the procedures of the Inter-
nal Revenue Service for issuing opinion and advisory letters for
§ 403(b) pre-approved plans (that is, § 403(b) prototype plans
and § 403(b) volume submitter plans). Under the program es-
tablished by this revenue procedure, the Service will accept
applications for opinion and advisory letters regarding the ac-
ceptability under § 403(b) of the Code of the form of prototype
plans and volume submitter plans. Rev. Procs. 2013–4 and
2013–8 modified.
EMPLOYMENT TAX
Announcement 2013–29, page 1024.
In Announcement 2012–25, 2012–26 I.R.B. 1054, the IRS
foreshadowed that it planned to solicit public comments on
possible changes to the existing Tip Rate Determination and
Education Program (TRDEP). In this Announcement, the IRS is
seeking comments on the manner to incorporate items the
public believes would increase tip reporting compliance and
ease taxpayer burden into the potential re-engineering of its
voluntary tip agreements. The IRS welcomes comments on
all aspects of the Tip Rate Determination Agreement and Tip
Reporting Alternative Commitment products, but is particularly
interested in suggestions regarding processes, computational
methodologies, agreement language, and suggested topics for
“Frequently Asked Questions.”
EXCISE TAX
Notice 2013–26, page 984.
On January 2, 2013, the American Taxpayer Relief Act of 2012,
Pub. L. 112-240, (ATRA) retroactively extended various fuel tax
credits that expired on December 31, 2011. The due date for
filing certain claims for payments related to biodiesel mixtures
and alternative fuel had already passed by the date that ATRA
was enacted. This Notice allows additional time for claimants
to file these claims for payments.
(Continued on the next page)
Fi
nding Lists begin on page ii.
Index for January through April begins on page iv.

ADMINISTRATIVE
Notice 2013–27, page 985.
This notice provides the maximum vehicle values for use with
the special valuation rules under regulation section 1.61-21(d)
and (e) for 2013. These values are adjusted for inflation and
must be adjusted annually by reference to the Consumer Price
Index.
April 29, 20132013–18 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly.
It is the poli
cy of the Service to publish in the Bulletin all sub-
stantive ru
lings necessary to promote a uniform application of
the tax laws
, including all rulings that supersede, revoke, mod-
ify, or amen
d any of those previously published in the Bulletin.
All publish
ed rulings apply retroactively unless otherwise indi-
cated. Pro
cedures relating solely to matters of internal man-
agement ar
e not published; however, statements of internal
practices
and procedures that affect the rights and duties of
taxpayers
are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions of
the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The cont
ents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
2013–18 I.R.B.April 29, 2013

Part III. Administrative, Procedural, and Miscellaneous
Biodiesel and Alternative
Fuels; Claims for 2012;
Excise Tax
Notice 2013–26
Section 1. PURPOSE
(a) On January 2, 2013, the American
Taxpayer Relief Act of 2012, Pub. L.
112–240, (ATRA) retroactively extended
the following fuel tax credits that expired
on December 31, 2011: the biodiesel (in-
cluding renewable diesel) mixture credit,
biodiesel credit, alternative fuel credit, and
the alternative fuel mixture credit. These
credits are now scheduled to expire on De-
cember 31, 2013.
(b) The due date for filing certain
claims for payments related to biodiesel
mixtures and alternative fuel had already
passed by the date that ATRA was enacted,
and the due date for other claims will ex-
pire before or shortly after this Notice is
released. This Notice allows additional
time for claimants to file these claims for
payments.
Section 2. BACKGROUND
(a)Excise tax credits—(1)In general.
Sections 6426(a) and (c) of the Internal
Revenue Code allow a person producing
a biodiesel (including renewable diesel)
mixture to claim a $1.00-per-gallon credit
against its tax liability under section 4081
(relating to the tax imposed on taxable
fuel). Similar rules under section 6426(d)
apply to a person that sells or uses alterna-
tive fuel as a fuel in a motor vehicle or a
motorboat and in aviation, except that the
credit amount is $0.50 per gallon, and the
credit for alternative fuel is taken against
the claimant’s tax liability under section
4041 (relating to the tax imposed on diesel
fuel and alternative fuel).
(2)Form and timing. The taxes im-
posed by sections 4041 and 4081 are
reported on Form 720,Quarterly Federal
Excise Tax Return, and the section 6426
claims are made on Schedule C (Form
720),Claims. Claims allowed by section
6426 that were notmade by a claimant on
the claimant’s Form 720 for a particular
quarter may be claimed on Form 720X,
Amended Quarterly Federal Excise Tax
Return. Generally, these claims must be
made within three years from the time the
return was filed or two years from the time
the tax was paid, whichever is later.
(b)Claims for payment—(1)In gen-
eral. A person allowed the biodiesel mix-
ture credit or alternative fuel credit whose
claims exceed its tax liability may claim
this excess as a payment under section
6427(e).
(2)Form and timing. A claimant must
first apply the biodiesel mixture credit and
alternative fuel credit against its tax liabil-
itybymakingtheclaimonForm720or
Form 720X. To the extent the claim ex-
ceeds its tax liability, the claimant may file
a claim for payment of that excess amount
on Form 8849,Claim for Refund of Excise
Taxes, and attach Schedule 3 (Form 8849),
Certain Fuel Mixtures and the Alterna-
tive Fuel Credit. Section 6427(i)(3)(C) re-
quires claims for payment under section
6427(e) to be filed on or before the last day
of the first quarter following the earliest
quarter of the claimant’s income tax year
included in the claim. For example, a cal-
endar-year claimant’s claim for a biodiesel
mixturesoldorusedduringJuneandJuly
must be filed by September 30 of the same
calendar year.
(c)Refundable income tax claims—(1)
In general. If a claimant does not timely
file an allowable claim for a payment un-
der section 6427(e), then section 34 allows
the claimant to file the claim as a refund-
able income tax credit.
(2)Form and timing. Claims under
section34mustbefiledonForm4136,
Credit for Federal Tax Paid on Fuels,as
an attachment to the claimant’s income tax
return. Generally, these claims must be
made within three years from the time the
claimant’s income tax return was filed or
two years from the time the income tax was
paid, whichever is later.
Section 3. TRANSITION RELIEF
(a)In general. When ATRA was en-
acted on January 2, 2013, the time had
already passed for filing some claims for
payment under section 6427(i)(3)(C). The
time for filing certain other claims for pay-
ment will expire before or shortly after this
Notice is released. This Notice extends the
time allowed to file these claims. These
claims may be combined on a single form
with claims for an excise tax credit un-
der section 6426. This Notice does not af-
fect the time for filing claims under section
34 (relating to refundable income tax cred-
its) or section 6426 (relating to excise tax
credits). Further, this Notice does not af-
fect a claimant’s ability to amend a previ-
ously-filed income tax return on which the
claimant claimed a section 34 credit so that
a section 6427(e) claim may be made pur-
suant to this Notice. For example, if before
April 3, 2013, a claimant filed a claim for
an income tax credit under section 34 for
2012, the claimant may amend its income
tax return to remove that claim under sec-
tion 34 and instead file a claim for payment
under section 6427(e) pursuant to the pro-
cedures in section 3(b) of this Notice.
(b)Allowable claims. The IRS will con-
sider a claim as timely filed if—
(1) The claim relates to sales or uses
of biodiesel mixtures or alternative fuel in
2012 for which either a credit under sec-
tion 6426 or a payment under section 6427
is allowed;
(2) The claim is filed on Form 8849 in
accordance with the instructions for that
form (as modified by this paragraph 3(b));
(3) The claimant has not made, and will
not make, this claim on any other form or
at any other time except for a claim that—
(i) Had previously been rejected by
the IRS solely because the claim was un-
timely; or
(ii) Has been repaid by the claimant on
an amended income tax return as described
in paragraph (a) of this section; and
(4) The claim is filed by July 1, 2013.
Section 4. DRAFTING INFORMATION
The principal author of this Notice is
Frank Boland of the Office of Associate
Chief Counsel (Passthroughs and Special
Industries). Mr. Boland may be reached
at (202) 622–3130 (not a toll-free call).
For questions about filing claims described
in this Notice, please contact Ron Sass at
(919) 850–1136 (not a toll-free call).
2013–18 I.R.B.984April 29, 2013

Maximum Vehicle Values
for 2013 for Use of
Vehicle Cents-Per-Mile and
Fleet-Average Valuation Rules
Notice 2013–27
PURPOSE
This notice provides the maximum ve-
hicle values for 2013 that taxpayers need
to determine the value of personal use of
employer-provided vehicles under the spe-
cial valuation rules provided under section
1.61–21(d) and (e) of the Income Tax Reg-
ulations.
BACKGROUND
If an employer provides an employee
with a vehicle that is available to the em-
ployee for personal use, the value of the
personal use must generally be included in
the employee’s income and wages. Inter-
nal Revenue Code § 61; Regulation section
1.61–21. If the employer meets certain re-
quirements, the employer may elect to de-
termine the value of the personal use us-
ing certain special valuation rules, includ-
ing the vehicle cents-per-mile rule and the
fleet-average value rule set forth in Reg-
ulation section 1.61–21(d) and (e), respec-
tively. Both the vehicle cents-per-mile rule
and the fleet-average value rule provide
that those rules may not be used to value
personal use of vehicles that have fair mar-
ket values exceeding specified maximum
vehicle values on the first day the vehicles
are made available to employees. These
maximum vehicle values are indexed for
inflation and must be adjusted annually
by referring to the Consumer Price In-
dex. In previous years these maximum
vehicle values and guidance on their cal-
culation and application have been pro-
vided by Revenue Procedure. For exam-
ple, the maximum vehicle values for vehi-
cles first placed intoservice in 2012 were
published in Revenue Procedure 2012–13
I.R.B. 2012–3 (January 17, 2012). Guid-
ance on the calculation and application of
these maximum vehicle values is set forth
in section 1.61–21(d) and (e) of the Reg-
ulations and does notchange from year-
to-year. Accordingly, beginning this year,
only the maximum vehicle values as ad-
justed for inflation will be published annu-
ally in a shorter notice.
MAXIMUM VEHICLE VALUES
The maximum value of employer-pro-
vided vehicles first made available to em-
ployees for personal use in calendar year
2013 for which the vehicle cents-per-mile
valuation rule provided under Regulation
section 1.61–21(e) may be applicable is
$16,000 for a passenger automobile and
$17,000 for a truck or van.
The maximum value of employer-pro-
vided vehicles first made available to
employees for personal use in calendar
year 2013 for which the fleet-average
valuation rule provided under Regulation
section 1.61–21(d) may be applicable is
$21,200 for a passenger automobile and
$22,300 for a truck or van.
EFFECTIVE DATE
This notice applies to employer pro-
vided passenger automobiles first made
available to employees for personal use in
calendar year 2013.
DRAFTING INFORMATION
The principal author of this notice
is Don M. Parkinson of the Office of
the Division Counsel/Associate Chief
Counsel) (Tax Exempt & Government
Entities). For further information on this
notice contact Don Parkinson on (202)
622–6040 (not a toll-free call).
Rev. Proc. 2013–22
TABLE OF CONTENTS
SECTION 1. PURPOSE
............................................................................................ 986
SECTION 2. BACKGROUND....................................................................................... 986
SECTION 3. DEFINITIONS......................................................................................... 987
SECTION 4. OVERVIEW AND PRINCIPAL CHANGES FROM THE DRAFT REVENUE PROCEDURE...................... 988
SECTION 5. WHAT IS A § 403(B) PROTOTYPE PLAN?................................................................ 992
SECTION 6. STANDARDIZED PROTOTYPE PLANS AND NONSTANDARDIZED PROTOTYPE PLANS..................... 992
SECTION 7. WHAT IS A § 403(B) VOLUME SUBMITTER PLAN?....................................................... 993
SECTION 8. PROVISIONS REQUIRED IN EVERY § 403(B) PRE-APPROVED PLAN...................................... 993
SECTION 9. ADDITIONAL PROVISIONS REQUIRED IN EVERY § 403(B) PROTOTYPE PLAN............................ 995
SECTION 10. ADDITIONAL PROVISIONS REQUIRED IN EVERY § 403(B) PRE-APPROVED PLAN
INTENDED TO BE A RETIREMENT INCOME ACCOUNT UNDER § 403(B)(9)
................................ 996
SECTION 11. WHO CAN SPONSOR A § 403(B) PROTOTYPE PLAN OR A § 403(B) VOLUME SUBMITTER
SPECIMEN PLAN? WHO CAN BE A MASS SUBMITTER?
................................................. 996
April 29, 20139852013–18 I.R.B.

SECTION 12. DUTIES OF A PRE-APPROVED PLAN SPONSOR........................................................ 997
SECTION 13. SCOPE OF AN OPINION OR ADVISORY LETTER....................................................... 997
SECTION 14. EMPLOYER RELIANCE ON AN OPINION LETTER...................................................... 997
SECTION 15. EMPLOYER RELIANCE ON AN ADVISORY LETTER.................................................... 998
SECTION 16. MAINTENANCE OF APPROVED STATUS............................................................... 998
SECTION 17. HOW TO APPLY FOR AN OPINION OR ADVISORY LETTER............................................. 999
SECTION 18. WITHDRAWAL OF REQUESTS....................................................................... 1000
SECTION 19. ABANDONMENT OF SPONSORSHIP OF § 403(B) PLANS................................................ 1000
SECTION 20. REVOCATION...................................................................................... 1000
SECTION 21. RETROACTIVE REMEDIAL AMENDMENT............................................................ 1000
SECTION 22. EFFECT ON OTHER DOCUMENTS................................................................... 1001
SECTION 23. EFFECTIVE DATE................................................................................... 1001
SECTION 24. PAPERWORK REDUCTION ACT...................................................................... 1001
SECTION 1. PURPOSE
This revenue procedure sets forth the
procedures of the Internal Revenue Ser-
vice for issuing opinion and advisory let-
ters for § 403(b) pre-approved plans (that
is, § 403(b) prototype plans and § 403(b)
volume submitter plans). Under the pro-
gram established by this revenue proce-
dure, the Service will accept applications
for opinion and advisory letters regarding
the acceptability under § 403(b) of the In-
ternal Revenue Code of the form of pro-
totype plans and volume submitter plans,
respectively, starting June 28, 2013.
SECTION 2. BACKGROUND
.01 Contributions for an annuity con-
tract purchased for an employee by an
eligible employer are generally excluded
from the employee’s gross income if
the requirements described in § 403(b)
are met. Amounts paid by an eligible
employer to a custodial account which
satisfies the requirements of § 401(f)(2)
are treated as contributed to an annuity
contract for an employee if the require-
ments of § 403(b)(7)(A)(i) and (ii) are
met. A retirement income account, within
the meaning of § 403(b)(9)(B), for em-
ployees of a Church-related organization,
within the meaning of § 1.403(b)–2(b)(6)
of the Treasury regulations, is treated as
an annuity contract. For purposes of this
revenue procedure, and except as other-
wise indicated, an eligible employer is a
public school, an employer described in
§ 501(c)(3) that is exempt from tax un-
der § 501(a), an employer of a minister
described in § 414(e)(5)(A) with respect
to the minister, or a minister described in
§ 414(e)(5)(A) with respect to a retirement
income account established for the minis-
ter.
.02 The 2007 regulations (as defined in
section 3.01) were generally effective as of
January 1, 2009.
.03 Sections 1.403(b)–3(b)(3) and
1.403(b)–9(a)(2)(ii) of the 2007 regula-
tions provide that an annuity contract,
custodial account, or retirement income
account generally does not satisfy the
requirements of § 403(b) unless it is main-
tained pursuant to a plan. A plan means
a written defined contribution plan that,
in both form and operation, satisfies the
requirements of the 2007 regulations.
Subsequent references in this revenue pro-
cedure to the requirements of § 403(b)
include the requirements of the 2007 reg-
ulations.
.04 The Service has not heretofore
maintained a program for the issuance of
opinion and advisory letters regarding the
acceptability of the form of a plan under
§ 403(b). However, the Service has on
occasion issued private letter rulings re-
garding the excludability of contributions
for a contract or account under § 403(b).
.05 The Service has received comments
from the public recommending ways to
assist eligible employers in complying
with the written plan requirement of the
2007 regulations. Among the recommen-
dations have been the publication of model
plan language for § 403(b) plans of public
schools and the expansion of the scope of
the Service’s master and prototype opin-
ion letter program for the pre-approval of
plans qualified under § 401(a) to include
§ 403(b) plans.
.06 Rev. Proc. 2007–71, 2007–2 C.B.
1184, provides guidance regarding com-
pliance with the 2007 regulations and in-
cludes model plan language that may be
used by public schools either to adopt a
written plan to reflect the requirements of
§ 403(b) or to amend a plan to reflect
those requirements. Rev. Proc. 2007–71
also provides that other eligible employ-
ers may use the model language as sam-
ple language to comply with one or more
of the requirements imposed by the 2007
regulations. Rev. Proc. 2007–71, includ-
ing its provisions regarding the extent to
which the model plan language may be
relied upon, is not modified by this rev-
enue procedure. Accordingly, absent fur-
ther notice, public schools and other eligi-
ble employers may continue to utilize the
language in Rev. Proc. 2007–71 as model
or sample language.
.07 Notice 2009–3, 2009–1 I.R.B. 250,
provides transition relief during 2009 for
2013–18 I.R.B.986April 29, 2013

sponsors of § 403(b) plans with respect to
the requirement to have a written § 403(b)
plan in place by January 1, 2009. Notice
2009–3 provides that the Service will not
treat a § 403(b) plan as failing to satisfy the
requirements of § 403(b) during the 2009
calendar year, provided that:
(1) on or before December 31, 2009, the
sponsor of the plan has adopted a written
§ 403(b) plan that is intended to satisfy
the requirements of § 403(b) (including the
2007 regulations) effective as of January 1,
2009;
(2) during 2009, the sponsor operates
the plan in accordance with a reasonable
interpretation of § 403(b), taking into ac-
count the 2007 regulations; and
(3) before the end of 2009, the spon-
sor makes its best efforts to retroactively
correct any operational failure during the
2009 calendar year to conform to the terms
of the written § 403(b) plan, with such cor-
rection to be based on the general prin-
ciples of correction set forth in the Ser-
vice’s Employee Plans Compliance Reso-
lution System (EPCRS) at section 6 of Rev.
Proc. 2008–50, 2008–35 I.R.B. 464.
The relief in Notice 2009–3 applies
solely with respect to the 2009 calendar
year and may not be relied on with respect
to the operation of a § 403(b) plan or cor-
rection of operational defects in any prior
or subsequent year.
.08 Announcement 2009–34, 2009–18
I.R.B. 916, asked for public comments on a
draft revenue procedure for pre-approving
the form of § 403(b) prototype plans and
on draft sample plan language that can be
used in writing these plans.
.09 Announcement 2009–89, 2009–52
I.R.B. 1009, provides that if a plan spon-
sor adopts a written § 403(b) plan on or
before December 31, 2009, that is intended
to satisfy the requirements of § 403(b), the
sponsor will have a remedial amendment
period in which to correct defects in the
form of the plan, retroactive to January
1, 2010, provided that the plan sponsor
timely adopts a pre-approved § 403(b) plan
with an opinion letter or timely applies for
an individual determination letter.
.10 Rev. Rul. 2011–7, 2011–10 I.R.B.
534, provides guidance clarifying how the
2007 regulations apply when a § 403(b)
plan is terminated.
.11 Announcement 2011–82, 2011–52
I.R.B. 1052, describes changes to the de-
termination letter program for plans quali-
fied under § 401(a) that were first effective
in 2012. Rev. Proc. 2013–6, 2013–1
I.R.B. 198, which sets forth the proce-
dures for issuing determination letters for
qualified plans, reflects the changes de-
scribed in Announcement 2011–82. These
changes resulted from the Service’s reeval-
uation of how best to allocate its limited
resources to help taxpayers understand
and comply with the law. These changes
eliminate features of the determination
letter program that are of limited utility
(i.e., elective demonstrations of a plan’s
satisfaction of nondiscrimination require-
ments) and limit the types of pre-approved
qualified plans that may obtain individual
determination letters. As a result of these
changes, determination letters for quali-
fied plans will no longer take into account,
or provide reliance with respect to, cer-
tain issues, and determination letters for
qualified plans that are based on the plan’s
pre-approved status will only be issued
with respect to volume submitter plans
that include minor modifications to the
pre-approved volume submitter specimen
plan. These resourceallocation consider-
ations are also reflected in the approach
taken in this revenue procedure.
SECTION 3. DEFINITIONS
.012007 regulationsmeans the final
regulations under § 403(b) (§§ 1.403(b)–1
through 1.403(b)–11) that were published
on July 26, 2007 (72 FR 41128).
.02Annuity contractmeans a contract
that includes payment in the form of an
annuity and that is issued by an insurance
company qualified to issue annuities in a
State.
.03Churchmeans a church within the
meaning of § 3121(w)(3)(A).
.04Church-related organizationmeans
a church or a convention or association
of churches, including an organization de-
scribed in § 414(e)(3)(A).
.05Custodial accountmeans a plan or
separate account under a plan in which an
amount attributable to § 403(b) contribu-
tions or amounts rolled over to a § 403(b)
contract is held by a bank or a person who
satisfies the conditions in § 401(f)(2), if:
(1) all amounts in the account are in-
vested in stock of a regulated investment
company, as defined in § 851(a);
(2) the requirements of § 1.403(b)–6(c)
restricting distributions are satisfied with
respect to amounts in the account;
(3) the assets in the account cannot be
used for, or diverted to, purposes other
than the exclusive benefit of plan partici-
pants and their beneficiaries; and
(4) the account is not part of a retire-
ment income account.
.06Eligible employermeans an em-
ployer described in § 403(b)(1)(A).
.07Governmental planmeans a gov-
ernmental plan within the meaning of
§ 414(d).
.08Investment arrangementmeans the
funding arrangement(s) under a § 403(b)
plan and includes anannuity contract,
custodial account,and,inthecaseof
a § 403(b) plan for the employees of a
Church-related organization, aretirement
income account.
.09 The termmass submitterhas the
meaning given in section 11.03.
.10 The termminor modifierhas the
meaning given in section 11.03.
.11Non-qualified church-controlled
organization
orNon-QCCOmeans a
church-controlled tax-exempt organiza-
tion described in § 501(c)(3) that is not a
qualified church-controlled organization
within the meaning of § 3121(w)(3)(B).
.12 The termnonstandardized planhas
the meaning given in section 6.03.
.13Prototype sponsormeans a person
meeting the eligibility requirements of sec-
tion 11.01 or section 11.03 that submits
an application for an opinion letter for a
§ 403(b) prototype plan under this revenue
procedure.
.14Qualified church-controlled organ-
izationorQCCOmeans a church-con-
trolled tax-exempt organization de-
scribed in § 501(c)(3) that is a qualified
church-controlled organization within the
meaning of § 3121(w)(3)(B).
.15Retirement income accountmeans
a defined contributionprogram established
or maintained by a Church-related organi-
zation to provide benefits under § 403(b)
for its employees or their beneficiaries as
described in § 1.403(b)–9.
.16Section 403(b) pre-approved plan
means a plan that is either a § 403(b) pro-
totype plan or a § 403(b) volume submitter
plan.
.17 The term§ 403(b) prototype plan
has the meaning given in section 5.
April 29, 20139872013–18 I.R.B.

.18 The terms§ 403(b) volume submit-
ter planand§ 403(b) volume submitter
specimen planhave the meaning given in
section 7.
.19 The termstandardized planhas the
meaning given in section 6.
.20Volume submitter practitioner
means a person meeting the eligibility
requirements of section 11.02 or section
11.03 that submits an application for an
advisory letter for a § 403(b) volume sub-
mitter specimen plan under this revenue
procedure.
SECTION 4. OVERVIEW AND
PRINCIPAL CHANGES FROM THE
DRAFT REVENUE PROCEDURE
.01 Overview.
(1) This revenue procedure establishes
a program for the pre-approval of § 403(b)
plans. This program offers employers that
maintain a § 403(b) plan an alternative to
adopting an individually designed plan in
order to satisfy the written plan require-
ment of the 2007 regulations. Under this
program, the Service will issue an opinion
or advisory letter as to whether the form
of a § 403(b) prototype plan or a § 403(b)
volume submitter plan, respectively, meets
the requirements of § 403(b). An employer
may satisfy the written plan requirement
and obtain assurance that its plan meets
the requirements of § 403(b) by adopting
a plan that has received an opinion or ad-
visory letter under this program.
(2) The program described in this rev-
enue procedure is similar in many respects
to the Service’s pre-approved plan pro-
gram for plans qualified under § 401(a),
which is described in Rev. Proc. 2011–49,
2011–44 I.R.B. 608. For example, two cat-
egories of pre-approved plans — prototype
plans and volume submitter plans, which
are described in section 5 and section 7 of
this revenue procedure, respectively — are
available under both programs.
(3) Although the program described in
this revenue procedure is similar in many
respects to the program described in Rev.
Proc. 2011–49, there are differences be-
tween the two programs, beyond those that
result from the differences in the Code re-
quirements under § 401(a) and § 403(b).
Under the pre-approved plan program for
qualified plans, adopting employers may
be able to obtain individual determination
letters under certain circumstances. The
Service is not establishing a determination
letter program for § 403(b) plans at this
time and an employer who adopts a pre-ap-
proved § 403(b) plan will not be able to
apply for an individual determination let-
ter for the plan. The extent of the adopt-
ing employer’s reliance on the opinion or
advisory letter may be limited, based on
the type of pre-approved § 403(b) plan the
employer has adopted, as explained in sec-
tions 4.01(6) and 4.01(8). A § 401(a) vol-
ume submitter plan may provide that the
volume submitter practitioner can amend
the plan on behalf of adopting employ-
ers, but the plan is not required to include
such a provision. Under this revenue pro-
cedure, a § 403(b) volume submitter plan
must provide that the volume submitter
practitioner can amend the plan on behalf
of adopting employers so that changes in
the Code, regulations, revenue rulings, or
other guidance published by the Service, or
corrections of prior approved plans, may
be applied to all eligible employers that
have adopted the plan.
(4) As more fully described in section
5, a § 403(b) prototype plan is a two-part
plan document intended to satisfy the re-
quirements of § 403(b) that a vendor or
other entity (referred to as “the prototype
sponsor”) provides to eligible employers
that wish to adopt a written § 403(b) plan.
The prototype sponsor submits the docu-
ment to the Service for approval that the
form of the document meets the require-
ments of § 403(b). Approval is provided
in the form of an opinion letter issued to
the sponsor by the Service.
(5) The first part of a § 403(b) prototype
plan document, called the basic plan docu-
ment, contains provisions that apply to the
plan of any eligible employer that uses the
document to adopt a written § 403(b) plan.
An eligible employer may not modify the
provisions of a basic plan document. The
second part of the document, called the
adoption agreement, is the part of the plan
document which is completed and signed
by an eligible employer in order to estab-
lish a written plan. The adoption agree-
ment gives the eligible employer elections
and options from which to choose in or-
der to customize particular features of its
plan. Thus, different eligible employers
can use the same § 403(b) prototype plan
document to adopt a written § 403(b) plan,
with the plans differentiated by the choices
each eligible employer makes in its plan’s
adoption agreement and the different in-
vestment arrangements offered under each
plan. This revenue procedure does not im-
pose any special restrictions on the types,
number, or features of investment arrange-
ments that may be offered under an eligible
employer’s § 403(b) prototype plan. How-
ever, the terms of the § 403(b) prototype
plan must override any inconsistent pro-
visions of investment arrangements under
the plan.
(6) There are two forms of § 403(b) pro-
totype plan under this revenue procedure:
a “standardized plan” and a “nonstandard-
ized plan.” A § 403(b) prototype plan is a
standardized plan if the only contributions
the employer may choose to provide un-
der the plan are elective deferrals or if the
terms of the plan satisfy uniform coverage
and nondiscrimination requirements with
respect to any other contributions under
the plan. For example, a standardized plan
must satisfy one of the design-based safe
harbors described in § 1.401(a)(4)–2(b)(2)
with respect to any employer nonelective
contributions (other than matching contri-
butions) under the plan. A nonstandard-
ized plan is a § 403(b) prototype plan that
is not a standardized plan. An eligible
employer that adopts a standardized plan
generally can rely directly on the opinion
letter for the plan. An eligible employer
that adopts a nonstandardized plan gener-
ally can rely directly on the opinion letter
for the plan if the plan is a governmental
plan or the employer is a Church or QCCO.
In all other cases, an eligible employer
that adopts a nonstandardized plan gener-
ally can rely directly on the opinion letter
for the plan except with respect to whether
the plan satisfies the nondiscrimination re-
quirements of §§ 401(a)(4) and 410(b) re-
lating to contributions under the plan other
than elective deferrals. An opinion letter
may not be relied upon with respect to Ti-
tle I of ERISA, although the Service may
decline to issue an opinion letter on a plan
that fails to satisfy a Code provision that
is parallel to a provision of Part 2 of Sub-
title B of Title I of ERISA. Standardized
and nonstandardized plans are discussed in
section 6, and reliance on an opinion letter
for a § 403(b) prototype plan is discussed
in section 14. Also see section 13 regard-
ing the scope of an opinion or advisory let-
ter.
(7) The second type of § 403(b) pre-ap-
proved plan is a § 403(b) volume submit-
2013–18 I.R.B.988April 29, 2013

ter plan, which is described in section 7.
Under this component of the pre-approved
plan program, a § 403(b) volume submitter
practitioner may apply for an advisory let-
ter that a § 403(b) volume submitter speci-
men plan (that is, a sample plan of the prac-
titioner rather than an employer’s plan) sat-
isfies the requirements of § 403(b). A
§ 403(b) volume submitter plan is not re-
quired to have an adoption agreement, but
may have one.
(8)Anadoptingemployerofa§403(b)
volume submitter plan can rely directly on
the advisory letter for the approved spec-
imen plan, except to the extent that the
employer’s plan is not identical to the ap-
proved specimen plan, disregarding any
differences attributable solely to the em-
ployer’s choices of options provided un-
der the specimen plan, and except with re-
spect to the requirements of §§ 401(a)(4)
and 410(b) (unless those requirements do
not apply to the plan, for example, because
the only contributions under the plan are
elective deferrals). See section 15 regard-
ing employer reliance on an advisory letter.
(9) Under the § 403(b) pre-approved
plan program, the Service will review
the basic plan document and adoption
agreement, or the specimen plan, as appli-
cable, but will not review any investment
arrangements or any other documents
that may form a part of an employer’s
plan. The terms of the pre-approved plan
must therefore satisfy the requirements
of § 403(b), independent of the terms of
the investment arrangements under the
plan. In addition, every § 403(b) pre-ap-
proved plan must provide that in the event
of a conflict between the terms of the
pre-approved plan and the terms of any
investment arrangements under the plan,
the terms of the plan will govern. Sec-
tion 8 describes this and other provisions
that must be included in every § 403(b)
pre-approved plan. Sections 9 and 10
describe additional provisions that must
be included in every § 403(b) prototype
plan and in every § 403(b) plan intended
to be a retirement income account under
§ 403(b)(9), respectively. Also see section
13 regarding the scope of an opinion or
advisory letter.
(10) Some of the provisions described
in section 8 that must be included in every
§ 403(b) pre-approved plan reflect proce-
dural requirements of the § 403(b) pre-ap-
proved plan program. One of those re-
quirements is that each § 403(b) pre-ap-
proved plan allow the prototype sponsor
or volume submitter practitioner, as ap-
plicable, to amend the § 403(b) pre-ap-
proved plan on behalf of each eligible em-
ployer that has adopted the plan. Under
this revenue procedure, each pre-approved
plan sponsor must carry out certain duties,
among them to keep the document up to
date for changes in law and to notify adopt-
ing employers of amendments to the docu-
ment. See section 11 for eligibility to spon-
sor a § 403(b) pre-approved plan, section
17 for opinion and advisory letter appli-
cation procedures, and sections 12 and 16
through 20 regarding the duties of sponsor-
ship.
(11) As indicated in Notice 2009–3 and
Announcement 2009–89, this revenue pro-
cedure, in section 21, includes a reme-
dial amendment provision that allows el-
igible employers to retroactively correct
defects in the form of their § 403(b) plans
for certain years through the timely adop-
tion of remedial amendments. This pro-
vision applies to eligible employers that
timely adopt a § 403(b) pre-approved plan
or that otherwise timely amend a § 403(b)
plan. No inferences should be drawn from
this provision regarding the application of
§ 401(b) to retroactive changes in plans
qualified under § 401(a).
.02 Principal changes from the draft
revenue procedure.
(1) This revenue procedure incorpo-
rates a number of changes to the program
described in the draft revenue procedure.
Some of the changes reflect the changes
to the qualified plan determination let-
ter program described in Announcement
2011–82 and the Service’s need to more
efficiently direct its limited resources.
Others are based on the Service’s con-
sideration of the comments submitted in
response to Announcement 2009–34. The
following are the principal changes to the
draft revenue procedure that are incorpo-
rated in this revenue procedure:
(2) Announcement 2009–34 stated the
Service’s intent to establish a program for
the issuance of determination letters for
individually designed § 403(b) plans fol-
lowing establishment of the prototype pro-
gram described in the draft revenue pro-
cedure. The draft revenue procedure pro-
vided that adopters of prototype § 403(b)
plans would also be able to obtain individ-
ual determination letters in certain cases.
A program for the pre-approval of proto-
type and volume submitter plans is a prac-
tical way to help large numbers of adopters
of § 403(b) plans understand and comply
with the tax rules regarding their plans. A
pre-approval program will utilize the Ser-
vice’s resources efficiently. A determi-
nation letter program for individually de-
signed § 403(b) plans, on the other hand,
is costly and less efficient. Given the Ser-
vice’s limited resources, it is not feasible
for the Service to establish such a program
at this time. Furthermore, issuing indi-
vidual determination letters to adopters of
pre-approved § 403(b) plans would greatly
increase the Service’s cost of administer-
ing the pre-approved plan program with
minimal additional benefit to plan spon-
sors and plan participants. Therefore, this
revenue procedure does not contemplate
the issuance of individual determination
letters to sponsors of § 403(b) plans. Thus,
a sponsor of a § 403(b) plan will be able to
obtain reliance as to the acceptability of the
form of its plan only if the plan is a pre-ap-
proved plan as described in this revenue
procedure or if the employer is a public
school that has adopted the model plan lan-
guage included in Rev. Proc. 2007–71 and
is entitled to reliance under that revenue
procedure. In addition, the extent of a plan
sponsor’s reliance on an opinion or advi-
sory letter will depend in some cases on the
type of pre-approved § 403(b) plan that the
sponsor adopts. See sections 4.01(6) and
4.01(8).
(3) Announcement 2009–89 and the
draft revenue procedure contained a re-
medial amendment provision that would
allow sponsors of § 403(b) plans to amend
their plans retroactively to satisfy § 403(b)
and the 2007 regulations by either adopt-
ing a pre-approved plan or amending an
individually-designed plan and applying
for a determination letter. Although a
determination letter program for § 403(b)
plans is no longer contemplated, sponsors
of both pre-approved § 403(b) plans and
individually designed § 403(b) plans will
be permitted to amend their plans retroac-
tively to satisfy § 403(b) and the 2007
regulations. An individually-designed
§ 403(b) plan that is eligible for remedial
amendment under this revenue procedure
must be amended to the extent necessary
to correct, retroactively, any defects in the
form of the plan by the time described in
section 21.05. Employers using individ-
April 29, 20139892013–18 I.R.B.

ually designed plans will not be entitled
to reliance that their plan terms comply
with the requirements of § 403(b) unless
they timely restate their plans in the form
of a pre-approved plan. As a result, after
the deadline described in section 21.05,
the sponsor of an individually designed
§ 403(b) plan will not have reliance that
the terms of the plan document meet the
applicable requirements for favorable tax
treatment.
(4) The scope of the § 403(b) pre-ap-
proved plan program has been expanded
under this revenue procedure to provide
for the issuance of advisory letters for
§ 403(b) volume submitter specimen
plans, including mass submitter specimen
plans, in addition to opinion letters for
§ 403(b) prototype plans. This change will
provide eligible employers that choose not
to use an adoption agreement format in
their plans access to pre-approved § 403(b)
plan documents.
(5) The provisions of the draft revenue
procedure regarding mass submitter plans
have been modified in this revenue proce-
dure to provide for the issuance of opinion
letters for § 403(b) prototype plans that are
minor modifiers of a § 403(b) prototype
plan of a mass submitter, regardless of the
number of eligible employers expected to
adopt the minor modifier plan.
(6) The scope of the program has been
expanded under this revenue procedure to
provide for the issuance of opinion and
advisory letters for retirement income ac-
counts.
(7) The definition of who is eligible to
sponsor a § 403(b) pre-approved plan has
been modified to include a Church-related
organization that sponsors a retirement in-
come account, regardless of the number of
eligible employers expected to adopt the
plan.
(8) This revenue procedure eliminates
the provision of the draft revenue pro-
cedure that would have prohibited the
issuance of opinion letters for plans that
include provisions applicable only to
Churches and QCCOs, Church-related
organizations, or ministers described in
§ 414(e)(5)(A).
(9) This revenue procedure also elim-
inates the provision of the draft revenue
procedure that would have prohibited the
issuance of opinion letters for plans that
include terms that are acceptable under
§ 403(b) only in a plan of a Church or
QCCO. Thus, for example, the Service
will not decline to issue an opinion or ad-
visory letter for a plan merely because the
plan does not require universal availability
of § 403(b) elective deferrals if the plan is
available for adoption only by a Church or
QCCO.
(10) This revenue procedure clarifies an
adopting employer’s ability to rely on an
opinion or advisory letter for a § 403(b)
pre-approved plan. The provisions of the
revenue procedure regarding reliance take
into account the following factors:
(a) Generally, a § 403(b) plan must
satisfy both (i) the universal availability
requirement of § 1.403(b)–5(b) with re-
spect to elective deferral contributions and
(ii) the rules of § 1.403(b)–5(a) that re-
quire any nonelective contributions under
the plan to satisfy the nondiscrimination
requirements of §§ 401(a)(4), 401(a)(17),
401(m), and 410(b) in the same manner
as a qualified plan under § 401(a). How-
ever, pursuant to § 1.403(b)–5(d), the
universal availability and nondiscrimina-
tion requirements of § 1.403(b)–5 do not
apply to a § 403(b) contract purchased by
a Church or QCCO. In addition, pursuant
to § 1.403(b)–5(a)(5), a governmental
§ 403(b) plan must satisfy the universal
availability requirement with respect to
elective deferrals under § 1.403(b)–5(b),
but such a plan is not required to satisfy the
nondiscrimination rules for nonelective
contributions under § 1.403(b)–5(a), other
than the requirement to limit compensa-
tion taken into account under the plan in
accordance with § 401(a)(17).
(b) Section 8 of this revenue procedure
generally requires every § 403(b) pre-ap-
proved plan to satisfy the requirements
of the 2007 regulations. Under section
8.06(2) and (3) of this revenue procedure,
every § 403(b) pre-approved plan must
satisfy the universal availability require-
ment with respect to elective deferrals
under § 1.403(b)–5(b) and must limit com-
pensation taken into account under the
plan with respect to nonelective contri-
butions in accordancewith § 401(a)(17),
unless the adopting eligible employer is a
Church or QCCO. Under section 8.06(4),
a § 403(b) pre-approved plan that permits
contributions subject to § 401(m) must
include terms that satisfy § 401(m), unless
the plan is available for adoption only as
a governmental plan or by a Church or
QCCO.
(c) A § 403(b) prototype plan that is
a standardized plan as defined in section
6.01 of this revenue procedure limits the
adoption agreement elections available
to the adopting employer with respect to
nonelective contributions to safe harbors
that automatically satisfy the nondis-
crimination requirements of §§ 401(a)(4)
and 410(b). A § 403(b) nonstandardized
prototype plan or a § 403(b) volume sub-
mitter plan may allow the employer to
make elections with respect to nonelective
contributions that require testing of the
coverage and benefits under the plan to
determine if the plan satisfies the nondis-
crimination requirements of §§ 401(a)(4)
and 410(b).
(d) An employer that adopts a § 403(b)
volume submitter plan may modify the
terms of the approved specimen volume
submitter plan, in addition to selecting
among options under the plan, without
causing the employer’s plan to be treated
as an individually designed plan, provided
the employer’s plan is “substantially sim-
ilar,” within the meaning of section 7.01
of this revenue procedure, to the approved
specimen plan.
(11) Taking into account the factors in
the preceding paragraph, this revenue pro-
cedure provides in general that:
(a) Any eligible employer that adopts a
standardized § 403(b) prototype plan may
rely on an opinion letter for the plan.
(b) An eligible employer that adopts a
nonstandardized § 403(b) prototype plan
mayrelyonanopinionletterfortheplan
if the plan is a governmental plan or if the
employer is a Church or QCCO.
(c) Any other eligible employer, includ-
ing an employer that is a Non-QCCO, that
adopts a nonstandardized § 403(b) proto-
type plan may rely on the opinion letter for
the plan, except with respect to whether
nonelective contributions under the plan
satisfy the requirements of §§ 401(a)(4)
and 410(b).
(d) An eligible employer that adopts a
§ 403(b) volume submitter plan may rely
upon an advisory letter for the plan, except
(i) to the extent that the employer modifies
the terms of the approved specimen plan
(other than by selecting options that are
permitted under the terms of the approved
specimen plan); and (ii) if the plan is not a
governmental plan or a plan of a Church or
QCCO, with respect to whether any non-
elective contributions under the plan sat-
2013–18 I.R.B.990April 29, 2013

isfy the requirements of §§ 401(a)(4) and
410(b).
Other limitations on employer reliance
on opinion and advisory letters are de-
scribed in sections 14 and 15 of this rev-
enue procedure.
(12) This revenue procedure eliminates
the provision of the draft revenue pro-
cedure that would have required every
§ 403(b) prototype plan to provide for full
and immediate vesting of all contributions
under the plan. Under this revenue proce-
dure, a § 403(b) pre-approved plan may
provide a vesting schedule for nonelec-
tive employer contributions, rather than
full and immediate vesting of such con-
tributions. Except in the case of certain
volume submitter plans, as described be-
low, nonelective employer contributions
(and earnings thereon) under a § 403(b)
pre-approved plan must vest at least as
rapidly as would be required to satisfy
the minimum vesting requirements of
§ 411(a)(2)(B), if the plan were a qualified
plan under § 401(a), even if the plan is not
subject to the parallel minimum vesting
requirements under section 203 of ERISA.
A volume submitter plan document that
is designed to be used for a plan that is
not subject to the minimum vesting re-
quirements of section 203 of ERISA (for
example, because the plan is a govern-
mental plan) is not required to provide
that nonelective employer contributions
will vest at least as rapidly as would be
required to satisfy § 411(a)(2)(B). Every
§ 403(b) pre-approved plan that provides
that an employee’s right to nonelective
employer contributions is forfeitable must
also satisfy the following requirements:
(i) the portion of a participant’s interest in
the plan that is not vested is maintained in
a separate account for the participant that
is treated as a separate contract to which
§ 403(c) (or, in case of a custodial ac-
count, § 401(a)) applies; (ii) as amounts in
the participant’s separate account become
nonforfeitable, they are removed from the
separate account and treated as amounts
held under a § 403(b) plan, to the extent
permitted under § 1.403(b)–3(d)(2)(ii);
and (iii) all nonvested amounts remaining
in the participant’s separate account be-
come nonforfeitable upon termination of
the plan.
(13) The preamble to the 2007 regula-
tions notes that a written plan facilitates the
allocation of responsibilities among vari-
ous parties to a plan, helping ensure that
these responsibilities are met. This rev-
enue procedure therefore requires every
§ 403(b) pre-approved plan to provide that
an appendix to the plan identify the parties
responsible for the various administra-
tive functions under the plan necessary to
comply with the requirements of § 403(b)
and other tax requirements, including such
requirements that apply on the basis of
the aggregated investment arrangements
issued to a participant under the plan, and
list all the vendors of investment arrange-
ments approved for use under the plan,
including sufficient information to identify
the approved investment arrangements.
This requirement replaces the requirement
in the draft revenue procedure that this
information be set forth in the adoption
agreement of a § 403(b) prototype plan.
Changestotheinformationintherequired
appendix will not affect the employer’s
ability to rely on an opinion or advisory
letter.
(14) This revenue procedure requires
everypre-approvedplansponsortotimely
notify adopting eligible employers of
amendments and restatements of the plan
and, in general, to inform employers of the
need to timely adopt the plan in the case
of both initial adoption and restatement of
the plan. This requirement replaces the
provision in the draft revenue procedure
that would have required sponsors to have
both a procedure to verify that adopting
employers have timely adopted and signed
the plan when required and a procedure
for employers to acknowledge receipt
of plan amendments if the employer is
not required to complete a new adoption
agreement.
(15) This revenue procedure clarifies
that, under the remedial amendment provi-
sions of the procedure, retroactive amend-
ments that are permitted to correct defects
in the form of the plan include amend-
ments to investment arrangements and any
other documents that are incorporated by
reference into the plan.
(16) A number of commentators urged
the Service to modify the provision in the
draft revenue procedure that would have
required every § 403(b) prototype plan
to provide that in the event of any con-
flict between the terms of the basic plan
document and adoption agreement and
the terms of any investment arrangement
under the plan, or of any other document
that is incorporated by reference into the
plan, the terms of the basic plan document
and adoption agreement would control.
After considering these comments, the
Service has concluded that a provision of
the type described in the draft revenue
procedure is fundamental to proper op-
eration of a § 403(b) pre-approved plan
program, particularly since the investment
arrangements and other documents that
may be incorporated by reference will not
be reviewed by the Service, and since the
change recommended by commentators
would result in an unacceptable degree
of uncertainty as to which terms control
in the event of conflict. Accordingly,
this revenue procedure requires every
§ 403(b) pre-approved plan to incorporate
by reference the terms of the investment
arrangements under the plan and to pro-
vide that, in the event of any conflict
between the terms of the basic plan doc-
ument and adoption agreement or volume
submitter plan and the terms of investment
arrangements (or of any other documents
incorporated by reference into the plan),
the terms of the basic plan document and
adoption agreement or volume submit-
ter plan shall govern. Furthermore, an
eligible employer may not rely on an opin-
ion or advisory letter for the employer’s
§ 403(b) pre-approved plan if the terms
of any investment arrangement under the
employer’s plan provide that such ar-
rangement’s terms govern in the event of a
conflict with the basic plan document and
adoption agreement or volume submitter
plan. The Service recognizes that this re-
quirement will require vendors to be aware
of and follow pre-approved plan provi-
sions that may affect them. The Service
made certain other changes, as described
in section 4.02(17), that, in conjunction
with the requirement to incorporate by
reference the terms of investment arrange-
ments, are intended to address concerns
expressed by commentators regarding the
requirement that the terms of a pre-ap-
proved plan’s basic plan document and
adoption agreement or volume submitter
plan govern if there is a conflict with the
terms of an investment arrangement under
the plan. (Also see section 8.03.)
(17) In some cases, the objections de-
scribedinsection4.02(16)(totherequire-
ment that the terms of the basic plan doc-
ument and adoption agreement or volume
submitter plan govern in case of conflict)
April 29, 20139912013–18 I.R.B.

may have been based in part on a percep-
tion that the adoption of a prototype plan
effectively prohibits the inclusion of addi-
tional features in the investment arrange-
ments under the plan, or the availability
of different features indifferent investment
arrangements under the plan, and that the
Service would not approve plans that al-
low adopting employers to provide that
the availability of certain features may de-
pend on the participant’s choice of invest-
ment arrangement. In revising the sam-
ple plan language, the Service has clarified
that, subject to the provisions of sections
8.04 and 8.05, such options are available
to drafters of pre-approved plans.
(18) A provision in the draft revenue
procedure would have allowed a prototype
sponsor to correct certain typographical er-
rors and incorrect cross-references in an
approved § 403(b) prototype plan with-
out adversely affecting adopting employ-
ers’ reliance on the opinion letter if the
correction would not change the original
intended meaning. As explained in sec-
tion 3.04(1)(d) of Rev. Proc. 2011–49, the
ability to correct errors in this manner is
no longer available for pre-approved qual-
ified plans and will not be available for
pre-approved 403(b) plans.
SECTION 5. WHAT IS A § 403(b)
PROTOTYPE PLAN?
.01 A § 403(b) prototype plan is a de-
fined contribution plan that is intended to
satisfy the requirements of § 403(b) and
is made available by a prototype sponsor
for adoption by eligible employers. (A
§ 403(b) prototype plan is one of two types
of § 403(b) pre-approved plans, the other
being a § 403(b) volume submitter plan
which is described in section 7 of this rev-
enue procedure.) See section 11 of this
revenue procedure regarding the entities
that are permitted to sponsor a § 403(b)
prototype plan. Each pre-approved form
of a § 403(b) prototype plan, as made avail-
able for adoption by eligible employers,
consists of one (and only one) basic plan
document and one (and only one) adop-
tion agreement. The basic plan document
contains all the nonelective provisions of
the prototype plan that apply to the plans
of all adopting eligible employers. The
basic plan document may not include any
options or blanks to be completed. The
adoption agreement facilitates the selec-
tion of plan design alternatives available
under the basic plan document. By com-
pleting the adoption agreement, an eligi-
ble employer may establish a plan (that is,
the combination of the basic plan docu-
ment and the completed adoption agree-
ment) that in form satisfies the require-
ments of § 403(b).
.02Inpre-approvedform,anadoption
agreement can be used with only one ba-
sic plan document. A basic plan doc-
ument can be used with more than one
adoption agreement, but each basic plan
document/adoption agreement pair consti-
tutes one separate § 403(b) prototype plan.
Thus, for example, if a prototype sponsor
sponsors one basic plan document and of-
fers adopting employers the choice of three
adoption agreements to be used with the
basic plan document to establish a plan,
the prototype sponsor has three separate
§ 403(b) prototype plans and would need
to submit three applications for opinion
letters under this procedure. A § 403(b)
prototype plan that is adopted by an eli-
gible employer is a single plan regardless
of whether there are multiple investment
arrangements or multiple vendors (that is,
insurance companies or regulated invest-
ment company custodians) under the plan.
Adoption of two § 403(b) prototype plans
(that is, execution of two separate adop-
tion agreements) constitutes the adoption
of two separate § 403(b) plans, regardless
of whether the two plans use the same ba-
sic plan document.
.03 A prototype sponsor may maintain
more than one basic plan document. For
example, a prototype sponsor may main-
tain one or more basic plan documents to
be used only with plans that limit contri-
butions to elective deferrals as well as one
or more basic plan documents to be used
with plans that provide for elective de-
ferrals and employer nonelective contribu-
tions, whether or not such plans also pro-
vide for matching contributions and/or af-
ter-tax employee contributions.
.04 A single basic plan document may
not be used for both a § 403(b) plan that is a
retirement income account and a § 403(b)
plan that is not a retirement income ac-
count. Thus, a separate basic plan docu-
ment is required for a plan that is intended
to constitute a retirement income account
under § 403(b)(9).
.05 As described above, a basic plan
document may have more than one adop-
tion agreement. Each plan (that is, each
basic plan document/adoption agreement
pair) must be either a standardized plan or
a nonstandardized plan. (See section 6 for
an explanation of the difference between
a standardized plan and a nonstandardized
plan.) This is because a standardized plan
may not include certain options that are
available to adopting employers of non-
standardized plans.Therefore, each adop-
tion agreement must specify whether it is a
standardized planadoption agreement or a
nonstandardized plan adoption agreement.
SECTION 6. STANDARDIZED
PROTOTYPE PLANS AND
NONSTANDARDIZED PROTOTYPE
PLANS
.01 Each § 403(b) prototype plan is ei-
ther a standardized plan or a nonstandard-
ized plan. A § 403(b) prototype plan is a
standardized plan if:
(1) the only contributions which an
adopting eligible employer may elect to
provide under the plan are elective defer-
rals; or
(2) the form of the plan satisfies the re-
quirements of section 6.02 with respect to
any contributions under the plan other than
elective deferrals, irrespective of the elec-
tions the adopting eligible employer makes
in the adoption agreement, and without re-
gard to the terms of any investment ar-
rangements under the plan or any docu-
ments incorporated by reference into the
plan.
.02 The form of a § 403(b) prototype
plan satisfies the requirements of this sec-
tion 6.02 with respect to any contributions
under the plan other than elective deferrals
if all of the following conditions are satis-
fied with respect to such contributions:
(1) The plan by its terms benefits all
employees except those who may be
excluded under § 1.410(b)–6. For this
purpose, “employee”means an employee,
within the meaning of § 1.403(b)–2(b)(9),
of the adopting eligible employer and any
eligible employer within the meaning of
§ 1.403(b)–2(b)(8) in the adopting eli-
gible employer’s controlled group. The
controlled group consists of the adopting
eligible employer and each other employer
that is aggregated with the adopting eli-
gible employer under § 414(b), (c), (m)
or (o), including § 1.414(c)–5. Thus, if
there is more than one eligible employer
2013–18 I.R.B.992April 29, 2013

in the controlled group, the plan must ben-
efit all the employees of all the eligible
employers in the controlled group except
those employees that may be excluded
under § 1.410(b)–6. A plan does not fail
to satisfy this requirement with respect
to contributions other than elective de-
ferrals merely because the plan provides
that individuals who become employees
as the result of a transaction described
in § 410(b)(6)(C), relating to certain em-
ployer acquisitions and dispositions, are
excluded from eligibility to participate in
the plan during the period beginning on
the date of the transaction and ending on a
date that is not later than the earlier of the
last day of the first plan year beginning
after the date of the transaction or the date
of a significant change in the plan or in the
coverage of the plan.
(2) All benefits, rights, and features un-
der the plan (other than those, if any, that
have been prospectively eliminated) are
currently available to all employees bene-
fiting under the plan. (For information re-
garding benefits, rights, and features, and
the determination of current availability,
see § 1.401(a)(4)–4.)
(3) If the plan provides for employer
nonelective contributions (other than
matching contributions), the plan must
satisfy one of the design-based safe har-
bors described in § 1.401(a)(4)–2(b)(2)
with respect to such contributions.
(4) For purposes of determining the
amount of contributions other than elec-
tive deferrals, the plan must define com-
pensation as total compensation. For
this purpose, total compensation means a
definition of compensation that includes
all compensation within the meaning of
§ 415(c)(3) (disregarding § 415(c)(3)(E))
and excludes all other compensation, or
a definition that satisfies the rules under
§ 1.414(s)–1(c).
.03 A nonstandardized § 403(b) pro-
totype plan is a § 403(b) prototype plan
that is not a standardized plan. For exam-
ple, a § 403(b) prototype plan is a non-
standardized plan if the adoption agree-
ment allows the adopting employer to se-
lect an allocation formula for nonelective
contributions that does not satisfy one of
the design-based safe harbors described in
§ 1.401(a)(4)–2(b)(2).
SECTION 7. WHAT IS A § 403(b)
VOLUME SUBMITTER PLAN?
.01 The term Ҥ 403(b) volume sub-
mitter plan” refers to either a “specimen
§ 403(b) plan” of a volume submitter prac-
titioner or a plan of a client of the volume
submitter practitioner that is substantially
similar to the volume submitter’s approved
specimen plan. For this purpose, an em-
ployer’s plan is not substantially similar to
an approved specimen § 403(b) plan, and
will be considered to be an individually
designed plan rather than a pre-approved
plan, if the Service determines (for exam-
ple, during an examination of the plan) that
differences between the terms of the em-
ployer’s plan and the terms of the approved
specimen plan are so extensive or com-
plex as to be incompatible with the pre-ap-
proved plan program. (A § 403(b) vol-
ume submitter plan is one of two types of
§ 403(b) pre-approved plans, the other be-
ing a § 403(b) prototype plan which is de-
scribed in section 5 of this revenue pro-
cedure.) See section 11 of this revenue
procedure regardingthe entities that are
permitted to sponsor a § 403(b) volume
submitter specimen plan. A “specimen
§ 403(b) plan” is a model plan document
(rather than the actual plan of an eligi-
ble employer) of a volume submitter that
is intended to satisfy the requirements of
§403(b). Aspecimen§403(b)planis
not required to, but may, include an adop-
tion agreement. If more than one adoption
agreement may be used with a specimen
§ 403(b) plan, each specimen plan/adop-
tion agreement pair is a separate volume
submitter plan. If an adoption agreement
is used for a volume submitter plan, it
must satisfy the requirements for prototype
adoption agreementsin section 9.03.
.02 A § 403(b) volume submitter plan
that is adopted by an eligible employer is a
single plan regardless of whether there are
multiple investment arrangements or mul-
tiple vendors (that is, insurance companies
or regulated investment company custo-
dians) under the plan. Adoption of two
§ 403(b) volume submitter plans consti-
tutes the adoption of two separate § 403(b)
plans, regardless of whether both plans are
substantially similar to a single specimen
§ 403(b) plan.
.03 A volume submitter may maintain
more than one specimen plan. For ex-
ample, a volume submitter may maintain
one or more specimen plans that limit con-
tributions to elective deferrals as well as
one or more specimen plans that provide
for elective deferrals and employer non-
elective contributions, whether or not the
plans also provide for matching contribu-
tions and/or after-tax employee contribu-
tions.
.04 A single specimen plan may not be
used for both a § 403(b) plan that is a re-
tirement income account and a § 403(b)
plan that is not a retirement income ac-
count. Thus, a separate specimen plan is
required for a plan that is intended to con-
stitute a retirement income account under
§ 403(b)(9).
SECTION 8. PROVISIONS
REQUIRED IN EVERY § 403(b)
PRE-APPROVED PLAN
.01 Sections 8.04 though 8.10 describe
provisions that must be included in every
§ 403(b) pre-approved plan.
.02 The Service’s review of a § 403(b)
pre-approved plan will consider only the
terms of the basic plan document and
adoption agreement or the volume sub-
mitter plan, as applicable. Accordingly,
the provisions described in sections 8.04
though 8.10 must be included in the ba-
sic plan document or adoption agreement
of every § 403(b) prototype plan and in
every § 403(b) volume submitter plan,
regardless of the terms of any investment
arrangements under the plan or any other
documents that may be incorporated by
reference. This does not preclude the
adoption of a § 403(b) pre-approved plan
(including a standardized prototype plan,
as described in section 6) if different in-
vestment arrangements under a plan have
different features or prevent the inclusion
of additional provisions in the terms of
the investment arrangements under the
plan or other documents incorporated by
reference. Nor does it prevent a § 403(b)
pre-approved plan from using investment
arrangements that are more restrictive
than required by § 403(b) or the basic
plan document and adoption agreement
or the volume submitter plan. However,
the terms of the basic plan document and
adoption agreement or the volume sub-
mitter plan, as applicable, must satisfy the
requirements of applicable law and sec-
tions 8.04 though 8.10 independent of any
investment arrangements under the plan
April 29, 20139932013–18 I.R.B.

or any other documents incorporated by
reference.
.03 For example, an eligible employer’s
§ 403(b) prototype plan may offer both
investment arrangements that permit loans
and investment arrangements that do not.
In this case, (1) the basic plan document
must include provisions reflecting the
requirements of the 2007 regulations, in-
cluding § 1.403(b)–6, and § 1.72(p)–1, and
(2) the basic plan document and adoption
agreement, as completed by the employer,
must provide that, to the extent permitted
by the terms governing the applicable in-
vestment arrangement, participant loans
are available. Similarly, an eligible em-
ployer’s § 403(b) volume submitter plan
must satisfy the requirements described in
the preceding sentence if the plan offers
both investment arrangements that per-
mit loans and investment arrangements
that do not. For sample plan language
that satisfies these requirements, see the
Listing of Required Modifications (for
§ 403(b) plans) which may be down-
loaded from the Internet at the follow-
ing address:http://www.irs.gov/pub/irs-
tege/403b_lrm0313.pdf. The following
are additional examples that illustrate the
application of section 8.03:
(1) A § 403(b) pre-approved plan may
provide that the forms of annuity benefit
available under the plan are those de-
scribed in the investment arrangements
under the plan. However, the terms of the
basic plan document and adoption agree-
ment or the volume submitter plan, as
applicable, must ensure that the required
minimum distribution requirements of
§ 401(a)(9) will be satisfied regardless
of the form of benefit paid, and the dis-
tributable events under the plan must be
described in the basic plan document and
adoption agreement or the volume submit-
ter plan, as applicable.
(2) A § 403(b) pre-approved plan may
provide that hardship distributions of elec-
tive deferrals are available to the extent
permitted under each investment arrange-
ment under the plan. In this case, the
basic plan document and adoption agree-
ment or the volume submitter plan must
either provide that hardship distributions
are available only for the financial needs
described in § 1.401(k)–1(d)(3)(iii)(B)
or must set forth nondiscriminatory and
objective standards for determining the
existence of an immediate and heavy fi-
nancial need. In addition, the basic plan
document and adoption agreement or the
volume submitter plan must provide that
the participant’s elective deferrals will
be suspended for 6 months following the
hardship distribution and set forth the
other requirements that must be satisfied
for a distribution to be treated as neces-
sary to satisfy the financial need. The
terms of any agreement governing the
relationship between the vendor of an in-
vestment arrangement under the plan and
the employer must provide that the ven-
dor will timely notify the employer of a
participant’s hardship distribution and the
requirement to suspend the participant’s
elective deferrals.
.04 A § 403(b) pre-approved plan in-
cludes the investment arrangements under
the plan in addition to the basic plan doc-
ument and adoption agreement or the vol-
ume submitter plan. Every § 403(b) pre-
approved plan must therefore incorporate
by reference the terms of the investment ar-
rangements under the plan. While the Ser-
vice’s review of an application for an opin-
ion or advisory letter is limited to the terms
of the basic plan document and adoption
agreement or the volume submitter plan,
as applicable, the terms of investment ar-
rangements and other documents that are
incorporated by reference must satisfy ap-
plicable law and may not have any provi-
sions that are inconsistent with § 403(b).
For example, if the forms of annuity ben-
efit available under a plan are described in
investment arrangements under the plan,
the terms of the investment arrangements
must satisfy, if applicable to the plan, the
joint and survivor annuity requirements of
section 205 of ERISA and any applicable
related rules, such as rules relating to trans-
fers of benefits that are subject to the joint
and survivor annuity requirement, and may
not have any provisions that are inconsis-
tent with § 403(b).
.05Every§403(b)pre-approvedplan
must provide that, in the event of any con-
flict between the terms of the pre-approved
plan and the terms of investment arrange-
ments under the plan (or of any other
documents incorporated by reference into
the plan), the terms of the pre-approved
plan shall govern. Furthermore, an eligi-
ble employer may not rely on an opinion
or advisory letter issued with respect to a
§ 403(b) pre-approved plan if any invest-
ment arrangement under the plan provides
that the terms of the investment arrange-
ment shall govern in the event of any
conflict between the terms of the arrange-
ment and the terms of the pre-approved
plan. An eligible employer that adopts a
§ 403(b) pre-approved plan should take
this requirement into account in consider-
ing investment arrangements to be offered
under the plan as well as other documents
that may be incorporated by reference.
Since the terms of investment arrange-
ments under a § 403(b) pre-approved plan
must be incorporated by reference into the
plan and those arrangements may not have
any provisions that are inconsistent with
§ 403(b), plan terms that are required in a
pre-approved plan under this section 8 or
section 9 or 10 should not create a conflict
with the terms of the investment arrange-
ments under a properly drafted § 403(b)
pre-approved plan. If there nevertheless
is such a conflict, the terms of the pre-ap-
proved plan must control. For sample
plan language for § 403(b) pre-approved
plans, see:http://www.irs.gov/pub/irs-
tege/403b_lrm0313.pdf.
.06 Every § 403(b) pre-approved
plan must satisfy the requirements of
§§ 1.403(b)–1 through 1.403(b)–11, in-
cluding the following requirements:
(1) The plan must contain all the ma-
terial terms and conditions for eligibility,
benefits, applicable limitations, the invest-
ment arrangements available under the
plan, and the time and form under which
benefit distributions will be made.
(2) The plan must satisfy the uni-
versal availability requirement with re-
spect to elective deferrals described in
§ 1.403(b)–5(b), unless the adopting eligi-
ble employer is a Church or QCCO.
(3) The plan must limit the amount of
compensation that can be taken into ac-
count with respect to any contribution un-
der the plan to the limitation in effect un-
der § 401(a)(17), unless the adopting el-
igible employer is a Church or QCCO.
The plan may provide that, if the plan is
a governmental plan, the transition rule in
§ 1.401(a)(17)–1(d)(4)(ii) will be applied
in determining the amount of a partici-
pant’s compensation that may be taken into
account.
(4) Unless the plan is designed by the
prototype sponsor or volume submitter to
be available for adoption only as a gov-
ernmental plan or by a Church or QCCO,
the plan must include terms that satisfy the
2013–18 I.R.B.994April 29, 2013

applicable requirements of § 401(m) if the
plan provides for matching or other contri-
butions that are subject to the requirements
of § 401(m).
(5) The plan must set forth the terms
governing all of the plan’s provisions re-
lating to benefits, including any hardship
distributions and other distribution events,
loans, plan-to-plan transfers, contract-to-
contract exchanges, and contributions and
rollovers into the plan that are available
under the plan, and may incorporate by ref-
erence the specific terms and conditions
for those benefits set forth in the invest-
ment arrangements.
.07 The plan may provide a vesting
schedule for nonelective employer con-
tributions, rather than provide for full
and immediate vesting of such contri-
butions. Except in the case of certain
volume submitter plans, as described be-
low, nonelective employer contributions
(and earnings thereon) under a § 403(b)
pre-approved plan must vest at least as
rapidly as would be required to satisfy
the minimum vesting requirements of
§ 411(a)(2)(B), if the plan were a qualified
plan under § 401(a), even if the plan is not
subject to the parallel minimum vesting
requirements under section 203 of ERISA.
A volume submitter plan document that
is designed to be used for a plan that is
not subject to the minimum vesting re-
quirements of section 203 of ERISA (for
example, because the plan is a govern-
mental plan) is not required to provide
that nonelective employer contributions
will vest at least as rapidly as would be
required to satisfy § 411(a)(2)(B). Every
§ 403(b) pre-approved plan that provides a
vesting schedule for nonelective employer
contributions must also satisfy the fol-
lowing requirements: (i) the portion of a
participant’s interest in the plan that is not
vested must be maintained in a separate
account for the participant that is treated as
a separate contract to which § 403(c) (or,
in case of a custodial account, § 401(a))
applies; (ii) as amounts in the participant’s
separate account become nonforfeitable,
they must be removed from the separate
account and treated as amounts held under
a § 403(b) plan, to the extent permitted
under § 1.403(b)–3(d)(2)(ii); and (iii) all
nonvested amounts remaining in the par-
ticipant’s separate account must become
nonforfeitable upon termination of the
plan.
.08Every§403(b)pre-approvedplan
must provide that an appendix to the plan
will identify the parties responsible for
the various administrative functions under
the plan to comply with the requirements
of § 403(b) and other tax requirements,
including the requirements that apply on
the basis of the aggregated investment
arrangements issued to a participant un-
der the plan, and will list all the vendors
of investment arrangements approved for
use under the plan, including sufficient
informationtoidentifytheapprovedin-
vestment arrangements. Changes to the
information in the required appendix will
not affect the employer’s ability to rely on
an opinion or advisory letter.
.09Every§403(b)pre-approvedplan
must provide a procedure for amendment
of the plan by the prototype sponsor or
volume submitter practitioner, as applica-
ble, so that changes in the Code, regula-
tions, revenue rulings, or other guidance
published by the Service, or corrections of
prior approved plans, may be applied to all
eligible employers that have adopted the
plan.
.10Every§403(b)pre-approvedplan
must provide that the prototype sponsor
or volume submitter, as applicable, will
inform the adopting eligible employer of
any amendments made to the plan and will
notify the employer of the discontinuance
or abandonment of the plan.
SECTION 9. ADDITIONAL
PROVISIONS REQUIRED IN EVERY
§ 403(b) PROTOTYPE PLAN
.01 Under § 1.415(f)–1(a)(3), all
§ 403(b) annuity contracts purchased by
an employer for a participant are treated
as one § 403(b) annuity contract for pur-
poses of § 415. Section 1.415(f)–1(f)(2)
contains a special rule providing that, if
a participant on whose behalf a § 403(b)
annuity contract is purchased is in con-
trol of any employer for a limitation year,
the § 403(b) annuity contract is aggre-
gated with all other defined contribution
plans maintained by that employer. For
these purposes, a custodial account and
a retirement income account are treated
as a § 403(b) annuity contract. Every
§ 403(b) prototype plan must include
plan language reflecting these rules. In
particular, the plan language must coor-
dinate the application of the § 415 limits
to all the § 403(b) prototype plans of
the adopting eligible employer and its
related employers so that, if the only
§ 403(b) plans maintained by the adopt-
ing employer and its related employers
are prototype plans, the plans will satisfy
§ 415(c) and § 1.415(f)–1(a)(3) without
requiring the addition of overriding plan
language. Every § 403(b) prototype plan
must also allow the adopting eligible em-
ployer to add overriding language to the
adoption agreement if necessary to coor-
dinate the application of the § 415 limits
if the adopting eligible employer or its
related employers also maintain § 403(b)
plans that are not prototype plans. For
this purpose, the term “related employers”
means all employers that are aggregated
with the adopting eligible employer un-
der § 414(b) and (c) (each as modified
by § 415(h)), (m), and (o), including
§ 1.414(c)–5. Sample language provided
in the Listing of Required Modifica-
tions (for § 403(b) plans) may be down-
loaded from the Internet at the follow-
ing address:http://www.irs.gov/pub/irs-
tege/403b_lrm0313.pdf.
.02 Every § 403(b) prototype plan must
provide that the eligible employer will be
considered to have adopted an individually
designed plan, and the eligible employer is
not entitled to reliance on an opinion letter
issued with respect to the plan, if:
(1) the eligible employer amends any
provision of the plan, including the adop-
tion agreement (other than (a) to change
the choice of options in the adoption agree-
ment, (b) to add overriding language in
the adoption agreement if necessary to sat-
isfy § 415 because of the required ag-
gregation of multiple plans, (c) to change
information in the required appendix de-
scribed in section 8.08, or (d) to adopt
sample or model amendments published
by the Service thatspecifically provide
that their adoption by an adopter of an ap-
proved § 403(b) prototype plan will not
cause such plan to be treated as individu-
ally designed); or
(2) the eligible employer chooses to
discontinue participation in the plan as
amended by the prototype sponsor and
does not substitute another approved
§ 403(b) prototype plan.
.03 The adoption agreement of every
§ 403(b) prototype plan must satisfy the
following requirements:
April 29, 20139952013–18 I.R.B.

(1) Although a single adoption agree-
ment may be made available to different
categories of eligible employers, the adop-
tion agreement must require the adopting
employer to show its status as an eligible
employer by indicating whether the em-
ployer is:
(a) a government-sponsored ed-
ucational organization described in
§ 170(b)(1)(A)(ii) (a “public school”);
(b) a tax-exempt organization described
in § 501(c)(3) which is exempt from tax
under § 501(a);
(c) an employer of a minister described
in § 414(e)(5)(A); or
(d) a minister described in
§ 414(e)(5)(A).
(2) The adoption agreement must re-
quire the adopting employer to show its
status with respect to the nondiscrimina-
tion requirements in § 1.403(b)–5 by indi-
cating whether the plan is:
(a) a governmental plan of a public
school;
(b) a governmental plan of a tax-exempt
organization described in § 501(c)(3);
(c) a plan of an employer that is a
Church or QCCO; or
(d) a plan (other than a plan described
in (a), (b), or (c)) of an employer that
is a tax-exempt organization described in
§ 501(c)(3).
(3) The adoption agreement must allow
the adopting eligible employer to add over-
riding plan language if necessary to satisfy
§ 415 because of the required aggregation
of multiple plans. See section 9.01.
(4) The adoption agreement must con-
tain a dated employer signature line. The
eligible employer must sign the adoption
agreement when it first adopts the plan and
must complete and sign a new adoption
agreement if the plan has been restated. In
addition, the eligible employer must com-
plete a new signaturepageifitmodifies
any prior elections or makes new elections
in its adoption agreement. The signature
requirement may be satisfied by an elec-
tronic signature that reliably authenticates
and verifies the adoption of the adoption
agreement, or restatement, amendment or
modification thereof, by the eligible em-
ployer.
(5) The adoption agreement must state
that it is to be used only with one spe-
cific basic plan document, and must iden-
tify that document.
(6) The adoption agreement must con-
tain a cautionary statement to the effect
that the failure to properly fill out the
adoption agreement may result in failure
of the plan to satisfy the requirements
of § 403(b). The Service expects that
§ 403(b) prototype plan documents will
bewritteninamannerdesignedtoassist
adopting eligible employers in the correct
completion of the adoption agreement.
(7) The adoption agreement must in-
clude the prototype sponsor’s name, ad-
dress, and telephone number (or a space for
the address and telephone number of the
prototype sponsor’s authorized representa-
tive) for inquiries by adopting eligible em-
ployers regarding the adoption of the plan,
the meaning of plan provisions, or the ef-
fect of the opinion letter.
.04 The adoption agreement of every
nonstandardized § 403(b) prototype plan
must satisfy the following additional re-
quirements:
(1) The adoption agreement must state
that, unless the plan is a governmental
plan,aChurch,oraQCCO,theplanmust
satisfy the requirements of §§ 401(a)(4)
and 410(b) with respect to nonelective
contributions under the plan on a contin-
uing basis.
(2) The adoption agreement must state
that the opinion letter may not be relied
upon with respect to whether the plan sat-
isfies the requirements of §§ 401(a)(4) and
410(b).
SECTION 10. ADDITIONAL
PROVISIONS REQUIRED IN EVERY
§ 403(b) PRE-APPROVED PLAN
INTENDED TO BE A RETIREMENT
INCOME ACCOUNT UNDER
§ 403(b)(9)
.01Every§403(b)pre-approvedplan
that is intended to be a retirement in-
come account under § 403(b)(9) must
state the intent to constitute a retire-
ment income account in accordance with
§ 1.403(b)–9(a)(2)(ii) and must satisfy the
other requirements of this section 10.
.02 The terms of the plan must satisfy
the separate accounting, investment per-
formance, and exclusive benefit require-
ments of § 1.403(b)–9(a)(2)(i).
.03 If the plan provides for benefits in
the form of a life annuity, the plan must
satisfy the present value and benefit guar-
antee requirements of § 1.403(b)–9(a)(5),
and the present value must be based on rea-
sonable actuarial assumptions that are ei-
ther set forth in the plan or incorporated by
reference into the plan.
SECTION 11. WHO CAN SPONSOR
A § 403(b) PROTOTYPE PLAN OR
A § 403(b) VOLUME SUBMITTER
SPECIMEN PLAN? WHO CAN BE A
MASS SUBMITTER?
.01 A person is eligible to sponsor a
§ 403(b) prototype plan if the person (1)
has an established place of business in the
United States where it is accessible during
every business day, and (2) expects at least
30 eligible employers to adopt its § 403(b)
prototype plan basic plan document(s). A
Church-related organization is eligible to
sponsor a § 403(b) prototype plan that is
intended to be a retirement income account
under § 403(b)(9), without regard to the
number of eligible employers that are ex-
pected to adopt the plan. A person eligible
to sponsor a § 403(b) prototype plan may
request opinion letters for any number of
basic plan documents and adoption agree-
ments.
.02 A person is eligible to sponsor a
§ 403(b) volume submitter specimen plan
if the person (1) has an established place
of business in the United States where
it is accessible during every business
day and (2) expects at least 30 eligible
employers to adopt its § 403(b) volume
submitter plan(s). A Church-related or-
ganization is eligible to sponsor a § 403(b)
volume submitter plan that is intended
to be a retirement income account under
§ 403(b)(9), without regard to the number
of eligible employers that are expected to
adopt the plan. A person eligible to spon-
sor a § 403(b) volume submitter specimen
plan may request advisory letters for any
number of specimen plans.
.03 Any person that has an estab-
lished place of business in the United
States where it isaccessible during ev-
ery business day may sponsor a plan as a
word-for-word identical adopter or minor
modifier of a § 403(b) prototype plan or
as a word-for-word identical adopter of
a § 403(b) volume submitter specimen
plan of a mass submitter, regardless of the
number of eligible employers expected to
adopt the plan. A mass submitter is any
person that (1) has an established place
of business in the United States where it
2013–18 I.R.B.996April 29, 2013

is accessible during every business day,
and (2) submits opinion or advisory letter
applications on behalf of at least 30 pro-
totype sponsors, or 30 volume submitters,
respectively, each of which is sponsoring,
on a word-for-word identical basis, the
same basic plan document or specimen
plan. A minor modifier means a person
that is sponsoring a § 403(b) prototype
plan that is word-for-word identical to the
plan of a mass submitter, but for minor
changes that do not require in-depth tech-
nical review in order to issue an opinion
letter. A § 403(b) prototype plan or vol-
ume submitter specimen plan of a mass
submitter must include language desig-
nating the mass submitter as agent for the
prototype sponsor or volume submitter for
purposes of making plan amendments. A
mass submitter may request opinion or
advisory letters for any number of basic
plan documents and adoption agreements
or specimen plans.
.04 The filing of an application for an
opinion or advisory letter for a § 403(b)
prototype plan or volume submitter spec-
imen plan constitutes a representation that
the requirements in this section 11 are sat-
isfied.
SECTION 12. DUTIES OF A
PRE-APPROVED PLAN SPONSOR
.01 Except in the case of a Church-re-
lated organization that sponsors a § 403(b)
prototype plan intended to be a retirement
income account under § 403(b)(9), a pre-
approved plan sponsor must maintain a
written record of the eligible employers
that have adopted the plan and, upon writ-
ten request, must provide the Service a
list of the names, addresses, and employer
identification numbers of all eligible em-
ployers that, to the best of the sponsor’s
knowledge, have adopted the plan, other
than employers that ceased to maintain the
plan as a prototype plan more than three
years prior to the request.
.02 Unless the pre-approved plan spon-
sor has withdrawn its opinion or advisory
letter application pursuant to section 18,
notified the Service and adopting eligible
employers that it is abandoning the plan
pursuant to section 19, or been notified by
the Service under section 20 that its opin-
ion or advisory letter has been revoked, the
pre-approved plan sponsor must continue
to maintain the approved status of the plan
as provided in section 16. Thus, the pre-
approved plan sponsor must timely amend
the plan for changes in the Code, regula-
tions, revenue rulings, or other guidance
published by the Service, and must apply
for new opinion or advisory letters when
required. The pre-approved plan spon-
sor must provide to the eligible employer
the plan and any restatements thereof, all
amendments and all opinion or advisory
letters, and must comply with the notice
requirements under this procedure and any
other written guidance. The plan, restate-
ments, amendments, and opinion or advi-
sory letters may be provided to adopting
eligible employers electronically.
.03 The pre-approved plan sponsor
must have a procedure to notify adopting
eligible employers of amendments and
restatements of the plan and to inform the
employers, when applicable, of the need
totimelyadopttheplaninthecaseof
both initial adoption and restatement of
the plan. The pre-approved plan sponsor
must also notify adopting employers that
failure to timely adopt the plan or restate-
ment, when required, or failure to take
into account plan amendments in the op-
eration of the plan could result in adverse
tax consequences.
.04Thefilingofanapplicationforan
opinion or advisory letter for a § 403(b)
pre-approved plan constitutes a represen-
tation that the pre-approved plan sponsor
agrees to comply withthe requirements of
this revenue procedure. Failure to do so
may result in the loss of eligibility to spon-
sor § 403(b) pre-approved plans and the re-
vocation of opinion or advisory letters that
have been issued to the pre-approved plan
sponsor.
.05 Also see section 16.03 regarding a
pre-approved plan sponsor’s duty to timely
notify an adopting employer if the spon-
sor determines that the employer’s plan
may no longer satisfy the requirements of
§ 403(b).
SECTION 13. SCOPE OF AN
OPINION OR ADVISORY LETTER
.01 An opinion or advisory letter for
a § 403(b) pre-approved plan constitutes
a determination that the form of the plan
documents, as adopted by a particular
adopting eligible employer, satisfies the
requirements of § 403(b) only under the
circumstances, and to the extent, described
in sections 14 and 15.
.02 The Service’s review of a pre-ap-
proved plan sponsor’s application for an
opinion or advisory letter for a § 403(b)
pre-approved plan will consider only the
terms of the basic plan document and
adoption agreement or the volume sub-
mitter plan, as applicable. The Service’s
review will not consider, and an opin-
ion or advisory letter will not express an
opinion with respect to, the terms of any
investment arrangements under the plan
of any adopting eligible employer or any
other documents that may be incorporated
by reference into an adopting eligible em-
ployer’s plan.
.03 An opinion or advisory letter for a
§ 403(b) plan does not express an opinion,
and may not be relied upon, with respect to
whether any plan is subject to the require-
ments of Title I of ERISA or whether a plan
satisfies any of those requirements.
.04 Opinion and advisory letters will
not be issued for any of the following:
(1) TEFRA church defined benefit
plans. (See § 1.403(b)–10(f)(2).)
(2) Plans grandfathered under Rev. Rul.
82–102, 1982–1 C.B. 62.
(3) Plans that include blanks or fill-in
provisions for the eligible employer to
complete unless the provisions have pa-
rameters that preclude the eligible em-
ployer from completing the provisions in
a manner that could cause the plan to fail
to satisfy § 403(b).
(4) Plans that incorporate by reference
the limitations of § 415 or the ACP test of
§ 401(m)(2).
The Service may, in its discretion, de-
cline to issue opinion or advisory letters for
other types of plans not described in this
section 13.04. For example, in the case of
a plan that is subject to Title I of ERISA,
the Service may, in its discretion, decline
to issue an opinion or advisory letter if the
plan fails to satisfy a Code provision that is
parallel to a provision in Part 2 of Subtitle
BofTitleIofERISA(suchas§§410and
411 of the Internal Revenue Code).
SECTION 14. EMPLOYER
RELIANCE ON AN OPINION
LETTER
.01 Governmental plans and plans of
Churches or QCCOs. An eligible em-
ployer that adopts a § 403(b) prototype
April 29, 20139972013–18 I.R.B.

plan, whether standardized or nonstan-
dardized, may rely upon an opinion letter
issued for the plan that the form of the
adopting eligible employer’s plan satisfies
the requirements of § 403(b) if the plan
is a governmental plan or if the adopting
eligible employer is a Church or QCCO.
However, the issuance of an opinion letter
does not constitute a determination that
the plan is a governmental plan or that the
adopting employer is a Church or QCCO.
.02 Standardized plans adopted by other
§ 501(c)(3) tax-exempt employers. An el-
igible employer that adopts a standardized
§ 403(b) prototype plan that is not a gov-
ernmental plan or a plan of a Church or
QCCO may rely upon an opinion letter is-
sued for the plan that the form of the adopt-
ing eligible employer’s plan satisfies the
requirements of § 403(b), including, if ap-
plicable, the requirements of §§ 401(a)(4)
and 410(b), if (1) the only contributions
under the plan are elective deferrals, or (2)
the plan provides for contributions other
than elective deferrals, all of the employers
in the adopting eligible employer’s con-
trolled group are eligible employers within
the meaning of § 1.403(b)–2(b)(8). If the
plan provides for contributions other than
elective deferrals and the adopting eligible
employer’s controlled group includes any
employer that is not an eligible employer
within the meaning of § 1.403(b)–2(b)(8),
the adopting eligible employer may rely
on the opinion letter, except with respect
to whether nonelective contributions un-
der the plan satisfy the requirements of
§§ 401(a)(4) and 410(b).
.03 Nonstandardized plans adopted by
other § 501(c)(3) tax-exempt employers.
An eligible employer that adopts a non-
standardized § 403(b) prototype plan that
is not a governmental plan or a plan of a
Church or QCCO may rely upon an opin-
ion letter issued for the plan that the form
of the adopting eligible employer’s plan
satisfies the requirements of § 403(b), ex-
cept with respect to whether nonelective
contributions under the plan satisfy the re-
quirements of §§ 401(a)(4) and 410(b).
.04 No reliance on § 415 in certain cir-
cumstances. Notwithstanding the other
provisions of this section 14, an opinion
letter issued for a § 403(b) prototype plan
may not be relied upon with respect to the
requirements of § 415 if the adopting eligi-
ble employer or any of its related employ-
ers maintains another § 403(b) plan cov-
ering any of the same participants as the
§ 403(b) prototype plan, unless the other
plan is also a § 403(b) prototype plan. For
this purpose, the term “related employ-
ers” means all employers that are aggre-
gated with the adopting eligible employer
under § 414(b) and (c) (each as modi-
fied by § 415(h)), (m), and (o), including
§ 1.414(c)–5. (Also see §§ 1.415(c)–1(d)
and 1.415(f)–1(f) for special rules applica-
ble to § 403(b) plans.)
.05 No reliance on inherently factual is-
sues. An opinion letter for a § 403(b) pro-
totype plan also may not be relied upon
with respect to issues of an inherently fac-
tual nature, such as whether the effective
availability of any benefits, rights, and fea-
tures is nondiscriminatory, or with respect
to whether a plan satisfies the requirements
of §§ 401(a)(4) and 410(b) with respect to
former employees.
SECTION 15. EMPLOYER
RELIANCEONANADVISORY
LETTER
.01 In general. An eligible employer
that adopts a § 403(b) volume submit-
ter plan may rely upon an advisory letter
issued for the plan that the form of the
adopting eligible employer’s plan satisfies
the requirements of § 403(b) except (i)
to the extent that the employer modifies
the terms of the approved specimen plan
(other than by selecting options that are
permitted under the terms of the approved
specimen plan); and (ii) if the plan is
not a governmental plan or a plan of a
Church or QCCO, with respect to whether
nonelective contributions under the plan
satisfy the requirements of §§ 401(a)(4)
and 410(b). The issuance of an advisory
letter does not constitute a determination
that the plan is a governmental plan or
that the adopting employer is a Church or
QCCO.
.02 No reliance on § 415 in certain cir-
cumstances. Notwithstanding the other
provisions of this section 15, an advisory
letter issued for a § 403(b) volume submit-
ter plan may not be relied upon with re-
spect to the requirements of § 415 if the
adopting eligible employer or any of its re-
lated employers maintain another § 403(b)
plan covering any of the same participants
as the § 403(b) volume submitter plan. For
this purpose, the term “related employ-
ers” means all employers that are aggre-
gated with the adopting eligible employer
under § 414(b) and (c) (each as modi-
fied by § 415(h)), (m), and (o), including
§ 1.414(c)–5. (Also see §§ 1.415(c)–1(d)
and 1.415(f)–1(f) for special rules applica-
ble to § 403(b) plans.)
.03 No reliance on inherently factual is-
sues. An advisory letter for a § 403(b) vol-
ume submitter plan also may not be relied
upon with respect to issues of an inherently
factual nature.
SECTION 16. MAINTENANCE OF
APPROVED STATUS
.01 A § 403(b) pre-approved plan must
be amended by the pre-approved plan
sponsor and, if necessary, the adopting
eligible employer(s), to retain its approved
status if any provisions therein fail to meet
the requirements of§ 403(b) as a result
of a change in the Code, regulations, rev-
enue rulings, or other guidance published
by the Service. The Service expects fu-
ture guidance to require the restatement
of every § 403(b) pre-approved plan by
the pre-approved plan sponsor every six
years. Upon issuance of a new opinion or
advisory letter for the restated plan, adopt-
ing eligible employers would generally
be required to adopt the restated plan (by
completing a new adoption agreement, in
the case of a prototype plan).
.02 As provided in section 8.05, every
§ 403(b) pre-approved plan must provide
that, in the event of any conflict between
the terms of the pre-approved plan and the
terms of investment arrangements under
the plan (or of any other documents in-
corporated by reference into the plan), the
terms of the pre-approved plan shall gov-
ern. An eligible employer may not rely on
an opinion or advisory letter issued with
respect to a § 403(b) pre-approved plan
if any investment arrangement under the
plan provides that the terms of the invest-
ment arrangement shall govern in the event
of any conflict between the terms of the
arrangement and the terms of the pre-ap-
proved plan. Employers and their advi-
sors should take this requirement into ac-
count in considering any investment ar-
rangements to be offered under a § 403(b)
pre-approved plan.
.03 If a pre-approved plan sponsor de-
termines that a § 403(b) pre-approved plan
as adopted by an eligible employer may no
longer satisfy the requirements of § 403(b)
2013–18 I.R.B.998April 29, 2013

and the pre-approved plan sponsor does
not or cannot correct the failure to satisfy
§ 403(b) under the self-correction or vol-
untary correction components of the Em-
ployee Plans Compliance Resolution Sys-
tem (EPCRS), the pre-approved plan spon-
sor must notify the eligible employer that
the plan may no longer satisfy § 403(b), ad-
vise the eligible employer that adverse tax
consequences may ensue, and inform the
eligible employer about the availability of
EPCRS. See Rev. Proc. 2013–12, 2013–4
IRB 313. This section 16.03 does not im-
pose a requirement on apre-approved plan
sponsor to monitor an adopting employer’s
plan’s compliance with the requirements
of § 403(b), but it provides that the pre-ap-
proved plan sponsor has a duty to inform
the adopting employer if the sponsor has
knowledge that the employer’s plan may
no longer satisfy those requirements.
SECTION 17. HOW TO APPLY
FOR AN OPINION OR ADVISORY
LETTER
.01 The Service will accept applica-
tions for opinion and advisory letters for
§ 403(b) pre-approved plans beginning
June 28, 2013.
.02 A separate application is required
for each adoption agreement that is offered
for adoption by a prototype sponsor and
each specimen plan of a volume submitter.
For example, assume a pre-approved plan
sponsor maintains three volume submitter
specimen plans and two prototype plan ba-
sic plan documents. One of the volume
submitter plans does not use an adoption
agreement, another has only one adoption
agreement, and the thirdhastwoadoption
agreements. Assume that there are three
adoption agreements that may be used with
each prototype plan basic plan document.
In this case, the pre-approved plan spon-
sor must submit 10 separate applications,
four applications for the volume submitter
plans and six applications for the prototype
plans.
.03 An application for an opinion letter
for a § 403(b) prototype plan may be filed
by a prototype sponsor, by a mass sub-
mitter with respect to its mass submitter
plan, or by a mass submitter on behalf of
a word-for-word identical adopter or mi-
nor modifier of the mass submitter’s plan.
An application for an advisory letter for a
§ 403(b) volume submitter specimen plan
may be filed by a volume submitter practi-
tioner, by a mass submitter with respect to
its mass submitter plan, or by a mass sub-
mitter on behalf of a word-for-word iden-
tical adopter of the mass submitter’s plan.
The Service is developing forms for these
applications and will issue an announce-
ment when the forms become available.
Until such time as the forms are available,
an application for an opinion or advisory
letter for a § 403(b) prototype or speci-
men plan may be made by submitting the
plan to the Service along with a completed
and signed “Application for Approval of
§ 403(b) Pre-approved Plan,” as provided
in the appendix to this revenue procedure.
The applicable user fee, determined under
section 6.03 or section 6.04 of Rev. Proc.
2013–8, 2013–1 I.R.B. 237, as if the appli-
cation were for a master and prototype plan
or a § 401(a) volume submitter plan, re-
spectively, must also be included with the
application. The request is to be sent to:
Internal Revenue Service
Commissioner, TE/GE
Attention: SE:T:EP:RA
P.O. Box 27063
McPherson Station
Washington, DC 20038
.04 In the case of an initial submission
of a mass submitter’s basic plan document
or specimen plan under this revenue pro-
cedure, the mass submitter’s application(s)
must also be accompanied by applications
for opinion or advisory letters filed on be-
half of at least 30 word-for-word identi-
cal adopters of the basic plan document
or specimen plan, as applicable, unless the
mass submitter has already satisfied this
requirement in connection with a previ-
ous application under this revenue proce-
dure involving another basic plan docu-
ment or specimen plan, as applicable. Af-
ter satisfying the 30 word-for-word identi-
cal adopter requirement, the mass submit-
ter may submit additional applications on
behalf of other pre-approved plan sponsors
that wish to adopt a word-for-word identi-
cal plan, or, in the case of a § 403(b) pro-
totype plan, a minor modifier plan. In ad-
dition, the mass submitter may then sub-
mit requests for opinion or advisory letters
for its other § 403(b) prototype or spec-
imen plans, as applicable, regardless of
the number of identical adopters of such
other plans. Until such time as the applica-
tion forms are available, Appendix A must
be completed, signed, and included with
each application that is submitted on be-
half of an identical adopter or minor mod-
ifier. The applicable user fee, determined
under section 6.03 or 6.04 of Rev. Proc.
2013–8, as if the application were for a
master and prototype plan or a § 401(a)
volume submitter plan, respectively, must
also be included with the application.
.05 Sample plan language to be used
in drafting § 403(b) pre-approved plans
is available from Employee Plans Rul-
ings and Agreements. Such language is
not automatically required in § 403(b)
pre-approved plans, but should be used
as a guide in drafting such plans. To
expedite the review of their plans, pre-ap-
proved plan sponsors are encouraged to
use the Service’s sample plan language
and to identify if such language is be-
ingusedintheirplandocuments. The
sample plan language may be down-
loaded from the Internet at the follow-
ing address:http://www.irs.gov/pub/irs-
tege/403b_lrm0313.pdf.
.06 A failure to disclose a material fact
or misrepresentation of a material fact in
the application may adversely affect the
reliance that would otherwise be obtained
through issuance by the Service of an opin-
ion or advisory letter. Similarly, failure to
accurately provide any of the information
called for on any form required by this rev-
enue procedure may result in no reliance.
.07 The Service may, at its discretion,
require any additional information that it
deems necessary in connection with its re-
view of a § 403(b) pre-approved plan. If
a letter requesting changes to plan doc-
uments is sent to the pre-approved plan
sponsor or an authorized representative, a
response to any questions raised or any
material requested must be received no
later than 30 days from the date of the let-
ter, and the response must include either
a copy of the plan with the changes high-
lighted or, if the changes are not exten-
sive, replacement pages. If the changes
are not received within30 days, the appli-
cation may be considered withdrawn. An
extension of the 30-day time limit will be
granted for good cause, as determined by
the Service.
.08 The Service will return, without fur-
ther action, plans that are not in substan-
tial compliance with the approval require-
ments or plans that are so deficient that
April 29, 20139992013–18 I.R.B.

they cannot be reviewed in a reasonable
amount of time. A plan may be consid-
ered not to be in substantial compliance if,
for example, it omitsan applicable Code
section, contains conflicting provisions, or
merely incorporates by reference an appli-
cable Code section. The Service will not
consider these plans until after they are re-
vised, and they will be treated as new re-
quests as of the date they are resubmitted.
No additional user fee will be charged if an
inadequate submission is amended to be in
substantial compliance and is resubmitted
to the Service within 30 days following the
date the pre-approved plan sponsor is no-
tified of the inadequacy.
.09 If the plan document submitted as
part of an opinion or advisory letter request
contains a provision that gives rise to an is-
sue for which the Service determines that
contrary published authority exists, failure
to disclose and address the significant con-
trary authority may result in requests for
additional information, which will delay
action on the request.
.10 An opinion or advisory letter issued
to a pre-approved plan sponsor is not trans-
ferable to any other entity. For this pur-
pose, a change of employer identification
number is deemed to be a change of entity.
.11 A change only in a pre-approved
plan sponsor’s name is not deemed to be
a change of entity. However, the pre-ap-
proved plan sponsor must notify the Ser-
vice in writing of the change in name and
certify that it still meets the conditions for
sponsorship described in section 11. No
opinion or advisory letter will be issued
and no user fee will be required for a mere
change in name.
SECTION 18. WITHDRAWAL OF
REQUESTS
.01 A pre-approved plan sponsor may
withdraw its request for an opinion or advi-
sory letter at any time prior to the issuance
of such letter by notifying EP Rulings and
Agreements in writing of such withdrawal.
The notification is to be sent to the address
in section 17.03. The pre-approved plan
sponsor must also notify each eligible em-
ployer that has adopted the plan that the
request has been withdrawn. Such an el-
igible employer will be deemed to have an
individually designed plan.
.02 Even though a request is withdrawn,
EP Rulings and Agreements will retain all
correspondence and documents associated
with that request and will not return them
to the pre-approved plan sponsor. EP Rul-
ings and Agreements may furnish its views
concerning the approval status of the plan
to EP Examinations, which has audit juris-
diction over the returns of the eligible em-
ployers that have adopted the plan.
SECTION 19. ABANDONMENT OF
SPONSORSHIP OF § 403(b) PLANS
.01 A pre-approved plan sponsor must
notify EP Rulings and Agreements in writ-
ing of a § 403(b) pre-approved plan that
is no longer used by any eligible employer
and which the pre-approved plan sponsor
no longer intends to offer for adoption.
Such written notification is to be sent to the
address in section 17.03 and should refer to
the file folder number appearing on the lat-
est opinion or advisory letter issued.
.02 A pre-approved plan sponsor that
intends to abandon a § 403(b) pre-ap-
proved plan that is in use by any adopting
eligible employer must inform each adopt-
ing eligible employer that the form of the
plan has been terminated, that the eligible
employer’s plan will become an individ-
ually designed plan (unless the eligible
employer adopts another § 403(b) pre-ap-
proved plan), and that any employer re-
liance will not continue if there is a change
in § 403(b), the regulations, revenue rul-
ings, or other guidance published by the
Service. After so informing all adopt-
ing eligible employers, the pre-approved
plan sponsor must notify EP Rulings and
Agreements in accordance with section
19.01.
SECTION 20. REVOCATION
An opinion or advisory letter found to
be in error or not in accord with the cur-
rent views of the Service may be revoked.
However, except in rare or unusual cir-
cumstances, such revocation will not be
applied retroactively if the conditions set
forth in sections 13 and 14 of Rev. Proc.
2013–4, 2013–1 I.R.B. 126 (disregarding
references therein to §§ 7428 and 7476) are
met. For this purpose, opinion and advi-
sory letters will be given the same effect
as rulings. Revocation may be effected by
a notice to the pre-approved plan sponsor
to which the letter was originally issued
or by publication in the Internal Revenue
Bulletin. The pre-approved plan sponsor
should then notify each adopting eligible
employer of the revocation as soon as pos-
sible. The content of the notification to
each adopting eligible employer must ex-
plain how the revocation affects any re-
liance an adopting eligible employer has
on the applicable opinion or advisory let-
ter.
SECTION 21. RETROACTIVE
REMEDIAL AMENDMENT
.01 Effective January 1, 2009, a con-
tract (that is, an annuity contract, cus-
todial account, or retirement income ac-
count) does not satisfy the requirements
of § 403(b) unless the contract is main-
tained pursuant to a written plan that, in
both form and operation, satisfies the re-
quirements of the 2007 regulations. The
transition relief in Notice 2009–3 sets
forth conditions under which a § 403(b)
plan will not be treated as failing to satisfy
the requirements of § 403(b) during the
2009 calendar year. The relief in Notice
2009–3 applies solely with respect to the
2009 calendar year.
.02Thissection21allowsaneligible
employer to retroactively correct defects in
the form of its written § 403(b) plan (in-
cluding any defects in documents incorpo-
rated by reference into the plan) in order
to satisfy the writtenplan requirement in
the 2007 regulations by timely adopting a
§ 403(b) pre-approved plan or by other-
wise timely amending its plan. For this
purpose, a defect in the form of a plan is a
provision, or the absence of a required pro-
vision, that causes the plan to fail to satisfy
the requirements of § 403(b). Under this
remedial amendment provision, an eligible
employer must amend its plan to the ex-
tent necessary to correct any form defects
retroactive to the first day of the plan’s re-
medial amendment period. For this pur-
pose, “the first day of the plan’s remedial
amendment period” means the later of Jan-
uary 1, 2010, or the effective date of the
plan.
.03 The form of a plan will be treated
as satisfying the requirements of the 2007
regulations as of the first day of the plan’s
remedial amendment period if (1) on or
before such day, the eligible employer
adopts a written plan that is intended to
satisfy the requirements of § 403(b), and
(2) on or before the last day of the re-
2013–18 I.R.B.1000April 29, 2013

medial amendment period, the employer
amends the plan, including any investment
arrangements and any other documents
incorporated by reference into the plan, to
the extent necessary to correct any form
defects retroactive to the first day of the
remedial amendment period. The lat-
ter requirement is automatically satisfied
(except to the extent any documents in-
corporated by reference into the plan must
be amended) if the employer retroactively
adopts a § 403(b) pre-approved plan with
an opinion or advisory letter on or before
the last day of the remedial amendment
period. (An eligible employer that timely
amends its plan is not required, but may
nevertheless choose, to amend its plan
retroactive to January 1, 2009. How-
ever, for purposes of Notice 2009–3 and
whether the Service will treat the eligible
employer’s § 403(b) plan as satisfying
the requirements of § 403(b) during the
2009 calendar year, only the plan that was
adopted on or before December 31, 2009
and in effect on that date, will be taken
into account.)
.04 For purposes of this section 21, a
§ 403(b) pre-approved plan with an opin-
ion or advisory letter means a plan for
which an opinion or advisory letter is is-
sued pursuant to a timely filed application
under this revenue procedure. An applica-
tion for an opinion or advisory letter under
this revenue procedure is timely filed if (a)
the application is filed with the Service by
April 30, 2014, or (b) for word-for-word
identical adopters or minor modifiers of
mass submitter plans, the opinion or advi-
sory letter application for the mass submit-
ter plan is filed with the Service April 30,
2014, irrespective of when the opinion or
advisory letter application for the identical
adopter or minor modifier plan is filed.
.05 The Service will announce, in sub-
sequent guidance, the date that will be
the last day of the remedial amendment
period for all eligible employers for pur-
poses of this section 21. The guidance
will be published in conjunction with the
issuance of opinion and advisory letters
pursuant to timely filed applications un-
der this revenue procedure. The Service
expects that the announced date will pro-
vide every eligible employer a period
in excess of one year from the date of
the announcement during which to either
adopt a pre-approved § 403(b) plan with
an opinion or advisory letter or otherwise
amend its plan. Persons wishing to com-
ment on the expected subsequent guidance
should submit comments in writing by
October 28, 2013. Written comments may
be sent to CC:PA:LPD:PR (Rev. Proc.
2013–22), Room 5203, Internal Revenue
Service, POB 7604, Ben Franklin Sta-
tion, Washington, D.C. 20044. Comments
may be hand delivered Monday through
Friday between the hours of 8 a.m. and
4p.m. toCC:PA:LPD:PR(Rev. Proc.
2013–22), Courier’s Desk, Internal Rev-
enue Service, 1111 Constitution Ave., NW,
Washington, D.C. Alternatively, com-
ments may be submitted via the Internet
tonotice.comments@irscounsel.treas.gov
(Rev. Proc.2013–22).
.06 For purposes of this section 21, a
“written plan that is intended to satisfy the
requirements of § 403(b)” includes both a
new plan that is intended to satisfy those
requirements and an existing plan that has
been amended with the intent of satisfying
those requirements, including a plan that is
based on the model plan language in Rev.
Proc. 2007–71 and a plan that is an adop-
tion of a § 403(b) pre-approved plan that
has been timely submitted for an opinion
or advisory letter under this revenue pro-
cedure.
SECTION 22. EFFECT ON OTHER
DOCUMENTS
.01 The definition of “opinion letter”
in section 3.05 of Rev. Proc. 2013–4 is
modified to provide that an opinion letter
also includes a written statement issued by
Employee Plans Rulings and Agreements
to a prototype plan sponsor as to the ac-
ceptability, for purposes of § 403(b), of the
form of a § 403(b) prototype plan. See
Rev. Proc. 2013–22.
.02 The definition of “advisory letter”
in section 3.11 of Rev. Proc. 2013–4 is
modified to provide that an advisory letter
also includes a written statement issued by
Employee Plans Rulings and Agreements
to a volume submitter practitioner as to
the acceptability, for purposes of § 403(b),
of the form of a § 403(b) specimen plan.
See Rev. Proc. 2011–49 and Rev. Proc.
2013–22.
.03 Rev. Proc. 2013–8 is modified to
provide that the user fee for an applica-
tion for an opinion or advisory letter for a
§ 403(b) pre-approved plan is the fee that
would apply under section 6.03 or 6.04 of
that revenue procedure if the application
were for an opinion letter for a § 401(k)
prototype plan or an advisory letter for a
§ 401(a) volume submitter plan.
SECTION 23. EFFECTIVE DATE
This revenue procedure is effective
April 29, 2013.
SECTION 24. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Office
of Management and Budget in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. 3507) under control number
1545–1520.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
revenue procedure are in sections 9.03(3),
12, 16, 17, 18.01, 19, 20, and 21. This
informationisrequiredtoobtainadvance
approval from the Service of the form of
prototype and similar plans. Employers
will adopt these preapproved plans to sat-
isfy requirements of 26 U.S.C. 403(b).
This information will be used to enable
the Service to make determinations that
the form of a written plan satisfies the
requirements of 26 U.S.C. 403(b) and is
entitled to favorable tax treatment. The
collections of information are voluntary,
to obtain a benefit. The likely respondents
are insurance companies, other financial
institutions, law, actuarial and consulting
firms, employee benefit practitioners, and
nonprofit institutions.
The estimated total annual reporting
and/or recordkeeping burden is 26,471
hours.
The estimated annual burden per re-
spondent/recordkeeper varies from
1
/2to
2,000 hours depending on individual cir-
cumstances, with an estimated average of
3.56 hours. The estimated number of re-
spondents and/or recordkeepers is 7444.
The estimated annual frequency of re-
sponses is on occasion.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
April 29, 201310012013–18 I.R.B.

the administration of any internal revenue
law. Generally tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal authors of this rev-
enue procedure are Angelique Carrington
and James P. Flannery of the Employee
Plans, Tax Exempt and Government
Entities Division. For further information
regarding this revenue procedure,
please contact the Employee Plans
taxpayer assistance answering service at
1–877–829–5500 (a toll-free number) or
e-mail Ms. Carrington or Mr. Flannery at
RetirementPlanQuestions@irs.gov.
2013–18 I.R.B.1002April 29, 2013

APPENDIX
Application for Approval of § 403(b) Pre-approved Plan
1. Enter amount of user fee submitted: $
2. Name of applicant:
a. EIN:
b. Address:
c. Phone:
3. Person to contact:
a. Phone:
b. Email address:
c. Power of attorney attached?
4. Type of applicant (check one):
a. Prototype sponsor
b. Prototype mass submitter
c. Volume submitter practitioner
d. Volume submitter mass submitter
e. Identical adopter of mass submitter plan
f. Minor modifier of mass submitter prototype plan
5. Form of plan (check one);
a. Prototype plan
b. Volume submitter specimen plan without adoption agreement
c. Volume submitter specimen plan with adoption agreement
6. If the plan is a prototype plan, indicate whether the plan is a (check one):
a. Standardized plan
b. Nonstandardized plan
7.a. Prototype plan basic plan document number (Each of the prototype sponsor’s or prototype mass submitter’s basic plan
documents must be assigneda 2-digit number, starting with 01. Enter the number you have assigned to the basic plan document
that is associated with the adoption agreement for which this application is filed.):
7.b. Prototype plan adoption agreement number (Each different adoption agreement associated with a single basic plan document
must be assigned a 3-digit number, beginning with 001. Enter the number you have assigned to the adoption agreement
for which this application is filed.):
7.c. Volume submitter specimen plan number (Each of the volume submitter practitioner’s or volume submitter mass submitter’s
specimen plans must be assigned a 2-digitnumber, starting with 01. Enter the number you have assigned to the specimen plan
for which this application is filed.):
7.d. Volume submitter plan adoption agreement number, if applicable (Each different adoption agreement associated with a single
specimen plan must be assigned a 3-digit number, beginning with 001. Enter the number you have assigned to the adoption
agreement for which this application is filed.):
8. If 4e or 4f is checked, complete the following information for the mass submitter’s plan on which this application is based, to
the extent the information is available when this application is filed:
a. Name of mass submitter:
b. File f
older number:
c. Letter serial number:
d. Date of letter:
e. Basic
plan document number or specimen plan number (if b, c, and d not available):
f. Adoption agreement number, if applicable (if b, c, and d not available)
9. Investment arrangement(s) permitted under the prototype or specimen plan:
a. Annuity contracts issued by an insurance company
b. Cust
odial accounts
c. Retirement income account
April 29, 201310032013–18 I.R.B.

10. Type(s) of contributions permitted under the prototype or specimen plan:
a. Elective deferrals (other than Roth)
b. Roth elective deferrals
c. After-tax employee contributions
d. Matching contributions
e. Other nonelective employer contributions
11. Are the following documents included with the application:
a. Basic plan document or specimen plan?
b. Adoption agreement (if the application is for a prototype plan or for a specimen plan that uses an adoption agreement)?
12. If 4a or 4c is checked, do you expect at least 30 eligible employers to adopt your § 403(b) prototype plan basic plan
documents(s) or volume submitter specimen plan(s)?
13. If 4b or 4d is checked, are applications on behalf of at least 30 prototype sponsors or volume submitters who are sponsoring
the identical basic plan document or specimen plan included with this application?
14. If the answer to 13 is “no,” enter the enter the number of the basic plan document or specimen plan for which the requirement
describedin13ismet:
15. Applicant’s signature under penalties of perjury (required if 4a, b, c, or d checked):
Under penalties of perjury, I declare that Ihave examined this application, including accompanying statements, and to the best
of my knowledge and belief it is true, correct, and complete.
Signature:Title:Date:
16. Prototype sponsor’s or volume submitter’s and mass submitter’s signatures under penalties of perjury (required if 4e or
4f checked):
Under penalties of perjury, I declare that the prototype sponsoror volume submitter practitioner identified in line 2 of this ap-
plication has adopted a prototype plan or a specimen plan that is identical to the mass submitter plan identified in line 7 or, in the
case of a prototype plan, is a minor modifier ofthe mass submitter plan identified in line 7.
Prototype sponsor’s or volume submitter’s signature:
Title:Date:
Mass submitter’s signature:
Title:Date:
2013–18 I.R.B.1004April 29, 2013

Part IV. Items o
fGeneralInterest
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 54
DEPARTMENT OF LABOR
Employee Benefits Security
Administration
29 CFR Part 2590
DEPARTMENT OF HEALTH
AND HUMAN SERVICES
45 CFR Parts 147, 148, and
156
Proposed Rules
REG–120391–10
Coverage of Certain
Preventive Services Under the
Affordable Care Act
AGENCIES:Internal Revenue Service,
Department of the Treasury; Employee
Benefits Security Administration, Depart-
ment of Labor; Centers for Medicare &
Medicaid Services, Department of Health
and Human Services.
ACTION:Proposed rules.
SUMMARY: This document proposes
amendments to rules regarding coverage
for certain preventive services under sec-
tion 2713 of the Public Health Service
Act, as added by the Patient Protection
and Affordable Care Act, as amended, and
incorporated into the Employee Retire-
ment Income Security Act of 1974 and
the Internal Revenue Code. Section 2713
of the Public Health Service Act requires
coverage without cost sharing of certain
preventive health services, including cer-
tain contraceptive services, in non-exempt,
non-grandfathered group health plans and
health insurance coverage. The proposed
rules would amend the authorization to
exempt group health plans established or
maintained by certain religious employers
(and group health insurance coverage pro-
vided in connection with such plans) with
respect to the requirement to cover con-
traceptive services. The proposed rules
would also establishaccommodations for
group health plans established or main-
tained by eligible organizations (and group
health insurance coverage offered in con-
nection with such plans), including student
health insurance coverage arranged by
eligible organizations that are religious
institutions of higher education. This doc-
ument also proposes related amendments
to regulations concerning excepted bene-
fits and Affordable Insurance Exchanges.
DATES: Comments are due on or before
April 8, 2013.
ADDRESSES: In commenting, please re-
fer to file code CMS–9968-P. Because of
staff and resource limitations, the Depart-
ments cannot accept comments by facsim-
ile (FAX) transmission.
You may submit comments in one of
four ways (please choose only one of the
ways listed):
1.Electronically.Youmay
submit electronic comments to
http://www.regulations.gov. Follow the
“Submit a comment” instructions.
2.By regular mail. You may mail
written comments to the following address
ONLY:
Centers for Medicare &
Medicaid Services,
Department of Health and
Human Services,
Attention: CMS–9968–P,
P.O. Box 8013,
Baltimore, MD 21244–1850.
Please allow sufficient time for mailed
comments to be received before the close
of the comment period.
3.By express or overnight mail.You
maysendwrittencommentstothefollow-
ing address ONLY:
Centers for Medicare &
Medicaid Services,
Department of Health and
Human Services,
Attention: CMS–9968–P,
Mail Stop C4–26–05,
7500 Security Boulevard,
Baltimore, MD 21244–1850.
4.By hand or courier. You may deliver
(by hand or courier) your written com-
ments to the following addresses ONLY:
a. For delivery in Washington, DC—
Centers for Medicare &
Medicaid Services,
Department of Health and
Human Services,
Room 445-G, Hubert H.
Humphrey Building,
200 Independence Avenue, S.W.,
Washington, DC 20201.
Because access to the interior of
the Hubert H. Humphrey Building
is not readily available to persons
without federal government identification,
commenters are encouraged to leave their
comments in the Centers for Medicare &
Medicaid Services drop slots located in
the main lobby of the building. A stamp-in
clock is available for persons wishing to
retain a proof of filing by stamping in and
retaining an extra copy of the comments
being filed.
b. For delivery in Baltimore, MD—
Centers for Medicare &
Medicaid Services,
Department of Health and
Human Services,
7500 Security Boulevard,
Baltimore, MD 21244–1850.
If you intend to deliver your com-
ments to the Baltimore address, call (410)
786–9994 in advance to schedule your
arrival with one of our staff members.
Do not mail comments to the addresses
indicated as appropriate for hand or courier
delivery because they may be delayed and
received after the close of the comment
period.
For information on viewing public
comments, see the beginning of the “SUP-
PLEMENTARY INFORMATION” sec-
tion.
FOR FURTHER INFORMATION
CONTACT:Jacob Ackerman, Centers for
Medicare & Medicaid Services (CMS),
Department of Health and Human Services
(HHS), at (410) 786–1565.
Amy Turner or Beth Baum, Employee
Benefits Security Administration (EBSA),
Department of Labor, at (202) 693–8335.
April 29, 201310052013–18 I.R.B.

Karen Levin, Internal Revenue Service
(IRS), Department of the Treasury, at (202)
927–9639 (not a toll-free call).
Customer Service Information:In-
dividuals interested in obtaining infor-
mation from the Department of Labor
concerning employment-based health cov-
erage laws may call the EBSA Toll-Free
Hotline at 1–866–444–EBSA (3272) or
visit the Department of Labor’s web
site (www.dol.gov/ebsa). In addition,
information from HHS on private health
insurance coverage can be found on
CMS’s web site (www.cciio.cms.gov), and
information on health care reform can be
found atwww.HealthCare.gov.
SUPPLEMENTARY INFORMATION:
Inspection of Public Comments:Allcom-
ments received before the close of the
comment period are available for viewing
by the public, including any personally
identifiable or confidential business in-
formation that is included in a comment.
The Departments post all comments re-
ceived before the close of the comment
period on the following web site as soon
as possible after they have been received:
www.regulations.gov. Follow the search
instructions on that web site to view public
comments.
Comments received timely will also
be available for public inspection as they
are received, generally beginning approx-
imately three weeks after publication of a
document, at the headquarters of the Cen-
ters for Medicare & Medicaid Services,
7500 Security Boulevard, Baltimore,
Maryland 21244, Monday through Friday
of each week from 8:30 a.m. to 4:00 p.m.
To schedule an appointment to view public
comments, call (800) 743–3951.
I. Background
The Patient Protection and Affordable
Care Act (Pub. L. 111–148) was enacted
on March 23, 2010, and amended by the
Health Care and Education Reconciliation
Act of 2010 (Pub. L. 111–152) on March
30, 2010. These statutes are referred to
collectively as the Affordable Care Act.
The Affordable Care Act reorganizes,
amends, and adds to the provisions of
part A of title XXVII of the Public Health
Service Act (PHS Act) relating to group
health plans and health insurance issuers in
the group and individual markets. The Af-
fordable Care Act adds section 715(a)(1)
to the Employee Retirement Income Se-
curity Act of 1974 (ERISA) and section
9815(a)(1) to the Internal Revenue Code
(Code) to incorporate the provisions of
part A of title XXVII of the PHS Act into
ERISA and the Code, and to make them
applicable to group health plans. The PHS
Act sections incorporated by these refer-
ences are sections 2701 through 2728.
Section 2713 of the PHS Act, as added
by the Affordable Care Act and incorpo-
rated into ERISA and the Code, requires
that non-grandfathered group health plans
and health insurance issuers offering
non-grandfathered group or individual
health insurance coverage provide bene-
fits for certain preventive health services
without the imposition of cost sharing.
These preventive health services include,
with respect to women, preventive care
and screenings as provided for in com-
prehensive guidelines supported by the
Health Resources and Services Adminis-
tration (HRSA).
The Departments of Health and Human
Services (HHS), Labor, and the Treasury
(collectively, the Departments) published
interim final rules with a request for com-
ments implementing section 2713 of the
PHS Act in the July 19, 2010Federal Reg-
ister(75 FR 41726) (2010 interim final
rules). Among other things, the 2010 in-
terim final rules provide that a plan or is-
suer must provide coverage, without cost
sharing, for certain newly recommended
preventive health services starting with the
first plan year (or, in the individual market,
policy year) that begins on or after the date
that is one year after the date on which the
recommendation or guideline is issued.
1
On August 1, 2011, HRSA adopted and
released guidelinesfor women’s preven-
tive services based on recommendations
of the independent Institute of Medicine,
which had undertaken a review of the sci-
entific and medical evidence on women’s
preventive services (Women’s Preventive
Services: Required Health Plan Coverage
Guidelines, or HRSA Guidelines).
2
As rel-
evant here, the HRSA Guidelines include
all Food and Drug Administration (FDA)-
approved contraceptive methods, steriliza-
tion procedures, and patient education and
counseling for all women with reproduc-
tive capacity, as prescribed by a health care
provider (collectively, contraceptive ser-
vices).
3
Accordingly, under section 2713
of the PHS Act and the 2010 interim fi-
nal rules, non-grandfathered group health
plans and health insurance issuers offer-
ing non-grandfathered group or individ-
ual health insurance coverage are required
to provide coverage without cost sharing
of women’s preventive health services, in-
cluding contraceptive services, consistent
with the HRSA Guidelines in plan years
(or, in the individual market, policy years)
beginning on or after August 1, 2012, ex-
cept as discussed later in this section.
Contemporaneous with the issuance of
the HRSA Guidelines, the Departments
amended the 2010 interim final rules
(76 FR 46621) (2011 amended interim
final rules). The amendment provided
HRSA with the authority to exempt group
health plans established or maintained by
religious employers (and group health in-
surance coverage provided in connection
with such plans) from the requirement
to cover contraceptive services pursuant
to the HRSA Guidelines.
4
The 2011
amended interim final rules specified that,
for purposes of this exemption, a religious
employer is one that: (1) has the incul-
cation of religious values as its purpose;
(2) primarily employs persons who share
its religious tenets; (3) primarily serves
persons who share its religious tenets; and
(4) is a nonprofit organization described
in section 6033(a)(1) and (a)(3)(A)(i) or
(iii) of the Code. Section 6033(a)(3)(A)(i)
and (iii) of the Code refers to churches,
their integrated auxiliaries, and conven-
tions or associations of churches, as well
as to the exclusively religious activities
of any religious order. HRSA exercised
this authority in the HRSA Guidelines
such that group health plans established
or maintained by these religious employ-
ers (and group health insurance coverage
provided in connection with such plans)
1
26 CFR 54.9815–2713T(b)(1); 29 CFR 2590.715–2713(b)(1); 45 CFR 147.130(b)(1).
2
The HRSA Guidelines are available at:http://www.hrsa.gov/womensguidelines.
3
This excludes services relating to a man’s reproductive capacity, such as vasectomies and condoms.
4
The 2011 amended interim final rules were issued and effective on August 1, 2011, and published on August 3, 2011.
2013–18 I.R.B.1006April 29, 2013

are exempt from the requirement to cover
contraceptive services.
On February 10, 2012, the Departments
issued final rules that adopted the defi-
nition of religious employer in the 2011
amended interim final rules for purposes
of the exemption from the requirement
to cover contraceptive services (2012 fi-
nal rules).
5
Contemporaneous with the
issuance of the 2012 final rules, HHS,
with the agreement of the Departments of
Labor and the Treasury, issued guidance
establishing a temporary enforcement safe
harbor for group health plans established
or maintained by certain nonprofit orga-
nizations that have religious objections
to contraceptive coverage (and any group
health insurance coverage provided in
connection with such plans).
6
The guidance provides that, under the
temporary enforcement safe harbor, the
Departments will not take any enforce-
ment action against an employer, group
health plan, or health insurance issuer for
failing to cover some or all recommended
contraceptive services in a non-grandfa-
thered group health plan (or any group
health insurance coverage provided in
connection with such a plan) where the
plan is established or maintained by an
organization meeting all of the following
criteria:
•The organization is organized and op-
erates as a nonprofit entity.
•From February 10, 2012, onward, the
group health plan established or main-
tained by the organization has consis-
tently not covered all or the same sub-
set of recommended contraceptive ser-
vices, consistent with any applicable
state law, because of the religious be-
liefs of the organization.
•The group health plan established or
maintained by the organization (or an-
other entity on behalf of the plan, such
as a health insurance issuer or third
party administrator) provides to partic-
ipants a notice indicating that some or
all contraceptive services will not be
covered under the plan for the first plan
year beginning on or after August 1,
2012, as set forth in the guidance.
•The organization self-certifies that it
satisfies the foregoing three criteria
and documents its self-certification, as
set forth in the guidance.
The temporary enforcement safe harbor
is also available for insured student health
insurance coverage arranged by nonprofit
institutions of higher education with reli-
gious objections to contraceptive coverage
that similarly meet the four criteria.
7
The temporary enforcement safe harbor
is in effect until the first plan year that be-
gins on or after August 1, 2013. The De-
partments committed to rulemaking dur-
ing this 1-year safe harbor period to pro-
vide women with contraceptive coverage
without cost sharing as required by section
2713 of the PHS Act, while protecting cer-
tain additional organizations from having
to contract, arrange, pay, or refer for any
contraceptive coverage to which they ob-
ject on religious grounds.
The first step toward realizing these
policy goals was an advance notice of pro-
posed rulemaking (ANPRM) published on
March 21, 2012 (77 FR 16501). The AN-
PRM presented potential approaches and
solicited comments on alternative ways
to fulfill the requirements of section 2713
of the PHS Act when health coverage
is established or maintained by eligible
organizations, or arranged by eligible or-
ganizations that are religious institutions
of higher education,
8
with religious ob-
jections to contraceptive coverage. The
90-day comment period on the ANPRM
closed on June 19, 2012.
These proposed rules mark the next step
in the process. The proposed rules would
make two principal changes to the pre-
ventive services coverage rules to provide
women contraceptive coverage without
cost sharing, while taking into account reli-
gious objections to contraceptive services
of eligible organizations, including eligi-
ble organizations that are religious insti-
tutions of higher education, that establish
or maintain or arrange health coverage.
First, the proposed rules would amend the
criteria for the religious employer exemp-
tion to ensure that an otherwise exempt
employer plan is not disqualified because
the employer’s purposes extend beyond
the inculcation of religious values or be-
cause the employer serves or hires people
of different religious faiths. Second, the
proposed rules would establish accommo-
dations for health coverage established or
maintained by eligible organizations, or
arranged by eligible organizations that are
religious institutions of higher education,
with religious objections to contraceptive
coverage. The proposed rules also pro-
pose related amendments to other rules,
consistent with the proposed accommoda-
tions. The Departments intend to finalize
all such proposed amendments before the
end of the temporary enforcement safe
harbor.
Comments are welcome on any aspect
of the proposed rules, including on how
best to provide women with contraceptive
coverage without cost sharing as required
by section 2713 of the PHS Act, while pro-
tecting eligible organizations from having
to contract, arrange, pay, or refer for any
contraceptive coverage to which they ob-
ject on religious grounds.
II. Overview of the Public Comments
on the Advance Notice of Proposed
Rulemaking
The Departments received approxi-
mately 200,000 comments in response to
the ANPRM. Commenters represented
a wide variety of stakeholders, includ-
ing religious groups; religiously affiliated
educational institutions, health care orga-
nizations, charities, and associations; civil
rights organizations; consumer groups;
group health plan sponsors and administra-
tors; third party administrators and other
5
The 2012 final rules were published on February 15, 2012 (77 FR 8725).
6
Guidance on the Temporary Enforcement Safe Harborfor Certain Employers, Group Health Plans, and Group Health Insurance Issuers with Respect to the Requirement to Cover Contra-
ceptive Services Without Cost Sharing Under Section 2713 of the Public Health Service Act, Section 715(a)(1) of the Employee Retirement Income Security Act, and Section 9815(a)(1)
of the Internal Revenue Code, issued on February 10, 2012, and reissued on August 15, 2012. Available at:http://cciio.cms.gov/resources/files/prev-services-guidance–08152012.pdf.The
guidance, as reissued on August 15, 2012, clarifies, among other things, that group health plans that took some action before February 10, 2012, to try, without success, to exclude or limit
contraceptive coverage are not precluded from eligibility for the safe harbor.
7
Seefinal rule on student health insurance coverage published by HHS on March 21, 2012 (77 FR 16456 and 16457).
8
In these proposed rules, any proposed accommodation specific to a religious institution of higher education is intended to accommodate the religious institution of higher education only
with respect to its arrangement of student health insurance coverage. With respect to the establishment or maintenance of a group health plan by a religious institution of higher education, the
religious institution of higher education is intended to be accommodated the same way as any other religious organization that has established or maintained a group health plan.
April 29, 201310072013–18 I.R.B.

plan service providers; health insurance
issuers; law and public policy organiza-
tions; states; secular organizations; private
citizens; and women’srights and repro-
ductive health advocacy organizations.
Comments addressed both the religious
employer exemption and the suggested ac-
commodations, among other issues. Al-
though the Departments do not separately
address each comment received, the sig-
nificant issues raised in the comments are
summarized in this section. The Depart-
ments considered these comments in de-
veloping the policies in these proposed
rules.
A. Comments on the Religious Employer
Exemption
Some commenters asserted that the def-
inition of religious employer as formulated
in the 2012 final rules is too narrow. Some
of these commenters expressed concern
that the group health plans of a number of
religious employers, including houses of
worship, do not qualify for the exemption
because the employers’ purposes extend
beyond the inculcation of religious val-
ues or because the employers serve or
hire people of different religious faiths.
Commenters noted that employers may
not know the religious beliefs of those
they serve or hire, and that employment
discrimination laws may prohibit them
from inquiring about the religious beliefs
of their employees. Other commenters
expressed concern that the definition of
religious employer is not broad enough
to allow them to continue their current
exclusion of contraceptive services from
coverage under their group health plans
and warned that, if the definition of re-
ligious employer is not broadened, they
could cease to offer health coverage to
their employees in order to avoid having
to offer coverage to which they object on
religious grounds.
Commenters also asserted that fed-
eral laws, including the Affordable Care
Act, provide for conscience clauses and
religious exemptions broader than the
religious employer exemption provided
for in the 2012 final rules. Other com-
menters asserted that the narrow scope
of the exemption raises concerns under
the First Amendment and the Religious
Freedom Restoration Act (RFRA). Some
commenters asserted that the criteria for
the religious employer exemption could
result in excessive government entangle-
ment in religion. Several commenters
expressed concern that the definition of
religious employer sets a precedent for
use in other areas of federal and state law.
These commenters urged that the defini-
tion of religious employer be broadened
such that more group health plans may
qualify for the exemption.
Other commenters, however, disputed
claims that the contraceptive coverage re-
quirement infringes on rights protected by
the First Amendment or RFRA, noting that
the requirement is neutral and generally
applicable. They also explained that the
requirement does not substantially burden
religious exercise and,in any event, serves
compelling governmental interests and is
the least restrictive means to achieve those
interests.
Some commenters supported the inclu-
sion of contraceptive services in the HRSA
Guidelines and urged that the Depart-
ments not broaden the religious employer
exemption. These commenters asserted
that the definition of religious employer
is appropriately targeted at houses of wor-
ship and argued that making contraceptive
coverage available to as many women
as possible would enhance access to im-
portant preventive health care services
and would significantly reduce long-term
health care costs and consequences asso-
ciated with unplanned pregnancies. These
commenters asserted that expanding the
exemption would undermine the benefits
of the law. Some commenters believed
that the exemption should be eliminated
entirely due to the importance of extend-
ing these benefits to as many women as
possible.
Several commenters requested clarifi-
cation as to whether, if employees of mul-
tiple employers are covered under a sin-
gle group health plan, each employer must
independently meet the definition of reli-
gious employer for the plan to qualify for
the exemption.
B. Comments on the Suggested
Accommodations for Health Coverage
Established or Maintained by Religious
Organizations or Arranged by Religious
Institutions of Higher Education
Several commenters asserted that the
suggested accommodations described in
the ANPRM would fail to adequately
accommodate religious objections to con-
traceptive coverage. These commenters
emphasized that, in their view, religious
organizations would continue to be in-
volved, whether directly or indirectly,
in providing coverage for services that
they find religiously objectionable. For
example, with respect to insured group
health plans, these commenters disputed
the claim that contraceptive coverage is
at least cost neutral and argued that plan
sponsors would end up funding the cov-
erage in the form of higher premiums or
fees. These commenters generally argued
that, in order to provide adequate relief,
the Departments would need to rescind
the contraceptive coverage requirement in
its entirety, provide an exemption for the
group health plan of any organization with
a religious or moral objection to contra-
ceptive coverage, or provide government
funding for provision of contraceptive
services.
Other commenters recommended that
the Departments expand the suggested
accommodations to encompass the group
health plans of a broader class of reli-
giously affiliated organizations. Several
commenters stated that the rules should
accommodate all organizations with a re-
ligious or moral objection to contraceptive
coverage, whether the organization is reli-
gious or secular, or nonprofit or for-profit,
among other potential distinctions. These
commenters also argued that an accommo-
dation should be available without regard
to whether an organization has covered
contraceptive services in its group health
plan in the past.
Some commenters recommended using
criteria in other federal laws, such as the
National Labor Relations Act, for deter-
mining whether the group health plan of an
organization qualifies for an accommoda-
tion. Some commenters suggested accom-
modating the group health plans of reli-
giously affiliated organizations recognized
as tax-exempt under an IRS group ruling.
In contrast, other commenters urged
that any accommodation apply only to
health coverage established or maintained
by a limited class of religiously affiliated
organizations or arranged by a limited
class of religiously affiliated institutions
of higher education. For example, sev-
eral commenters suggested limiting any
accommodation to only health coverage
2013–18 I.R.B.1008April 29, 2013

established or maintained by nonprofit
organizations owned or controlled by a
church, association of churches, or re-
ligious order, or arranged by nonprofit
institutions of higher education owned or
controlled by a religious organization as
defined for purposes of Title IX of the
Education Amendments of 1972. These
commenters also generally argued that
health coverage established or maintained
by for-profit organizations or arranged
by for-profit institutions of higher edu-
cation, or health coverage established or
maintained by organizations, or arranged
by institutions of higher education, that
object to only some types of contraceptive
services, should not qualify for an accom-
modation.
A number of commenters supported a
self-certification process, similar to that
used for the temporary enforcement safe
harbor, for religious organizations seeking
to avail themselves of an accommodation.
Some commenters urged that the Depart-
ments adopt appropriate oversight and en-
forcement mechanisms to monitor compli-
ance with the criteria for any accommoda-
tion and recommended self-certification as
a tool to promote transparency and support
compliance and enforcement. Other com-
menters suggested that the Departments
consider any such self-certification to be
conclusive to avoid inquiry into a religious
organization’s character, mission, or prac-
tices.
Comments were quite varied regarding
the ANPRM’s suggested approaches with
respect to the provision of contraceptive
coverage to participants and beneficiaries
enrolled in self-insured group health plans
established or maintained by religious or-
ganizations with religious objections to
such coverage. Many commenters sup-
ported the general approach suggested in
the ANPRM of ensuring that participants
and beneficiaries enrolled in such self-in-
sured plans receive contraceptive coverage
without cost sharing. These commenters
stated that any accommodation should
not create delays in or barriers to contra-
ceptive benefits, and that these benefits
should be provided without participants
and beneficiaries having to specifically
elect such benefits.
Concerns were raised by some com-
menters about an objecting organization’s
ability to not administer, facilitate, or
otherwise involve itself in the provision
of contraceptive coverage to such par-
ticipants and beneficiaries. Many com-
menters were concerned about how third
party administrators would be able to
fund these benefits. They noted that drug
rebates, one suggested source of funds,
often belong to another entity (such as the
plan sponsor and/or the plan participants
and beneficiaries), not the third party ad-
ministrator, and stated that, in their view,
costs incurred by third party administra-
tors would ultimately be passed on to
plan sponsors and/or plan participants and
beneficiaries unless a separate source of
funding could be found, such as some
form of public funding or stand-alone
contraceptive coverage with no premium
or cost sharing. Others raised questions
about the responsibility for communica-
tions regarding contraceptive coverage.
Some third party administrators were con-
cerned about becoming surrogate insurers,
which might subject them to the applica-
tion of state insurance laws. At the same
time, other commenters believed that,
with funding, notice, and adequate claims
information, contraceptive coverage could
be administered effectively by third party
administrators.
III. Provisions of the Proposed Rules
A. Overview
The Departments aim to secure the pro-
tections under section 2713 of the PHS Act
that are designed to enhance coverage of
important preventive services for women
without cost sharing while accommodat-
ing the religious objections to contracep-
tive coverage of eligible organizations.
The Departments propose two key
changes to the preventive services
coverage rules codified in 26 CFR
54.9815–2713T, 29 CFR 2590.715–2713,
and 45 CFR 147.130 to meet these goals.
First, the proposed rules would amend the
criteria for the religious employer exemp-
tion to ensure that an otherwise exempt
employer plan is not disqualified because
the employer’s purposes extend beyond
the inculcation of religious values or be-
cause the employer serves or hires people
of different religious faiths. Second, the
proposed rules would establish accommo-
dations for health coverage established or
maintained by eligible organizations, or
arranged by eligible organizations that are
religious institutions of higher education,
with religious objections to contraceptive
coverage.
Amendments to rules concerning ex-
cepted benefits and Affordable Insurance
Exchanges (Exchanges) are also proposed
in connection with the proposed accom-
modations.
B. Explanation of Terms
In these proposed rules, all references
to “contraceptive coverage” are references
to coverage of the contraceptive services
that are required to be covered without
cost sharing in accordance with the HRSA
Guidelines (that is, all FDA-approved
contraceptive methods, sterilization pro-
cedures, and patient education and coun-
seling for all women with reproductive
capacity, as prescribed by a health care
provider).
All references to “accommodation”
are references to an arrangement under
which contraceptive coverage is provided
without cost sharing to plan participants
and beneficiaries (or, in the case of stu-
dent health insurance coverage, student
enrollees and their covered dependents)
independent of health coverage estab-
lished or maintained or arranged by an
objecting religious organization, including
an objecting religious institution of higher
education.
Finally, all references to “religious or-
ganization” and “religious institution of
higher education” are references to the
class of organizations and institutions of
higher education that establish or maintain
or arrange health coverage that qualifies
for an accommodation. These organi-
zations are collectively referred to as
“eligible organizations” in these proposed
rules.
C. Religious Employer Exemption and
Accommodations for Health Coverage
Established or Maintained or Arranged
by Eligible Organizations
For purposes of organization and clar-
ity, proposed 45 CFR 147.130(a)
9
would
provide that the requirement to provide
coverage for recommended preventive ser-
9
For simplicity, this preamble refers only to provisions of 45 CFR 147.130.Parallel provisions to 45 CFR 147.130 are contained in 26 CFR 54.9815–2713Tand 29 CFR 2590.715–2713.
April 29, 201310092013–18 I.R.B.

vices without cost sharing is subject to a
new 45 CFR 147.131, which would estab-
lish standards and processes related to both
the religious employer exemption and the
accommodations for health coverage es-
tablished or maintained or arranged by el-
igible organizations, as discussed in more
detail later in this section.
Accordingly, the proposed rules
would move to new 45 CFR 147.131
10
the language currently in 45 CFR
147.130(a)(1)(iv)(A) and (B) (incorpo-
rated by reference in the rules of the
Departments of Labor and the Treasury)
that authorizes HRSA to exempt group
health plans of religious employers (and
group health insurance coverage provided
in connection with such plans) from the
contraceptive coverage requirement and
that defines religious employer for this
purpose, and would amend the authoriza-
tion and definition as discussed later in
this section.
1. Religious Employer Exemption
Currently, under the 2012 final rules,
a religious employer is one that: (1) has
the inculcation of religious values as its
purpose; (2) primarily employs persons
who share its religious tenets; (3) primar-
ily serves persons who share its religious
tenets; and (4) is a nonprofit organiza-
tion described in section 6033(a)(1) and
6033(a)(3)(A)(i) or (iii) of the Code. Sec-
tion 6033(a)(3)(A)(i) and (iii) of the Code
refers to churches, their integrated auxil-
iaries, and conventions or associations of
churches, as well as to the exclusively re-
ligious activities of any religious order.
The Departments explained in the 2011
amended interim final rules that this def-
inition was intended to focus the religious
employer exemption on“theuniquerela-
tionship between a house of worship and
its employees in ministerial positions.”
11
Some commenters brought to the De-
partments’ attention that the group health
plans of certain religious entities that
meet the fourth prong of the definition
of religious employer (providing that a
religious employer is a nonprofit organ-
ization described insection 6033(a)(1)
and(a)(3)(A)(i)or(iii)oftheCode)may
not qualify for the exemption because
those entities provide benevolent services
to their communities. For example, if a
church maintains a soup kitchen that pro-
vides free meals to low-income individuals
irrespective of their religious faiths, it
could fail to satisfy the third prong of the
definition of religious employer (provid-
ing that a religious employer primarily
serves persons who share its religious
tenets). The same question could arise if
a church runs a parochial school that em-
ploys people of different religious faiths.
The Departments agree that the exemp-
tion should not exclude group health plans
of religious entities that would qualify for
the exemption but for the fact that, for
example, they provide charitable social
services to persons of different religious
faiths or employ persons of different re-
ligious faiths when running a parochial
school. Indeed, this was never the De-
partments’ intention in connection with
the 2011 amended interim final rules or
the 2012 final rules. Accordingly, in 45
CFR 147.131(a) (and the related rules of
the Departments of Labor and the Trea-
sury), the Departments propose to amend
the definition of religious employer that
was adopted in the 2012 final rules by
eliminating the first three prongs of the
definition and clarifying the application
of the fourth. Under this proposal, an
employer that is organized and operates as
a nonprofit entity and referred to in sec-
tion 6033(a)(3)(A)(i) or (iii) of the Code
would be considered a religious employer
for purposes of the religious employer ex-
emption. For this purpose, an organization
that is organized and operates as a non-
profit entity is not limited to any particular
form of entity under state law, but may
include organizations such as trusts and
unincorporated associations, as well as
nonprofit, not-for-profit, non-stock, public
benefit, and similar types of corporations.
However, for this purpose, an organiza-
tion is not considered to be organized and
operated as a nonprofit entity if its assets
or income accrue to the benefit of private
individuals or shareholders. Under this
standard, it is not necessary to determine
the federal tax-exempt status of the non-
profit entity in determining whether the
religious employer exemption applies.
The Departments note that eliminating the
first three prongs would avoid any inquiry
into an employer’s purposes, as well as
any inquiry into the religious beliefs of
its employees and the religious beliefs of
those it serves.
The Departments believe that this pro-
posal would not expand the universe of
employer plans that would qualify for
the exemption beyond that which was
intended in the 2012 final rules. As pre-
viously noted, when the Departments
first defined religious employer, the pri-
mary goal was to exempt the group health
plans of houses of worship. Section
6033(a)(3)(A)(i) and (iii) of the Code
refers to churches, their integrated aux-
iliaries, and conventions or associations
of churches, as well as to the exclusively
religious activities of any religious order.
By restricting the exemption primarily to
group health plans established or main-
tained by churches, synagogues, mosques,
and other houses of worship, and religious
orders, the fourth prong of the current
definition of religious employer would
alone suffice to meet the goal. By elimi-
nating the first three prongs of the current
definition, there no longer would be any
question as to whether group health plans
of houses of worship that provide educa-
tional, charitable, or social services to their
communities qualify for the exemption.
The Departments welcome comments
on this proposal, including whether it
would unduly expand the universe of em-
ployer plans that would qualify for the
exemption and whether additional or dif-
ferent language is needed to clarify the
scope of the exemption.
2. Accommodations for Health Coverage
Established or Maintained or Arranged
by Eligible Organizations
In proposed 45 CFR 147.131(b)
through (e) (and the related rules of the
Departments of Labor and the Treasury)
and as discussed later in this section, the
Departments propose policies relating to
the accommodation of certain group health
plans and group health insurance coverage
with respect to the contraceptive coverage
requirement. The Departments propose
a comparable accommodation with re-
spect to student health insurance coverage
10
For simplicity, this preamble refers only to provisions of 45 CFR 147.131.Parallel provisions to 45 CFR 147.131 are contained in 26 CFR 54.9815–2713Aand 29 CFR 2590.715–2713A.
11
76 FR 46623.
2013–18 I.R.B.1010April 29, 2013

arranged by eligible organizations that
are religious institutions of higher edu-
cation. The Departments believe these
proposed accommodations, as opposed
to the exemption that is provided to re-
ligious employers, are warranted given
that participants and beneficiaries in group
health plans established or maintained by
eligible organizations, as well as student
enrollees and their covered dependents
in student health insurance coverage ar-
ranged by eligible organizations, may be
less likely than participants and beneficia-
ries in group health plans established or
maintained by religious employers to share
such religious objections of the eligible
organizations. The proposed accommoda-
tions would provide such plan participants
and beneficiaries contraceptive coverage
without cost sharing while insulating their
employers or institutions of higher educa-
tion from contracting, arranging, paying,
or referring for such coverage.
a. Definition of Eligible Organization
These proposed rules would provide
that group health plans established or
maintained by eligible organizations with
religious objectionsto contraceptive cov-
erage (and group health insurance cov-
erage provided in connection with such
plans), and student health insurance cov-
erage arranged by eligible organizations
that are religious institutions of higher
educationwithsuchobjections, comply
with the requirement to provide coverage
for contraceptive services under section
2713 of the PHS Act if the conditions of
the accommodation are satisfied.
For purposes of these proposed rules
only, the Departments propose to define
an eligible organization as an organization
that meets all of the following criteria:
•The organization opposes providing
coverage for some or all of the contra-
ceptive services required to be covered
under section 2713 of the PHS Act on
account of religious objections.
•The organization is organized and op-
erates as a nonprofit entity.
•The organization holds itself out as a
religious organization.
•The organization self-certifies that it
satisfies the first three criteria, as de-
scribed later in this section.
This proposed definition of eligible
organization is intended to allow health
coverage established or maintained or
arranged by nonprofit religious orga-
nizations, including nonprofit religious
institutional health care providers, edu-
cational institutions, and charities, with
religious objections tocontraceptive cov-
erage to qualify for an accommodation.
For this purpose, an organization that is
organized and operated as a nonprofit en-
tity is not limited to any particular form
of entity under state law, but may include
organizations such as trusts and unincor-
porated associations, as well as nonprofit,
not-for-profit, non-stock, public benefit,
and similar types of corporations. How-
ever, for this purpose an organization is
not considered to be organized and oper-
ated as a nonprofit entity if its assets or
income accrue to the benefit of private
individuals or shareholders.
The Departments believe that the pro-
posed definition of eligible organization
would strike an appropriate balance be-
cause it would limitany accommodation
to nonprofit organizations that hold them-
selves out as religious. The Departments
solicit comments on whether the proposed
definition of eligible organization would
allow an appropriate universe of nonprofit
religious organizations and institutions of
higher education establishing or maintain-
ing or arranging health coverage to qual-
ify for an accommodation, including com-
ments on whether it would be too broad or
too narrow.
The Departments do not propose that
the definition of eligible organization ex-
tend to for-profit secular employers. Reli-
gious accommodations in related areas of
federal law, such as the exemption for reli-
gious organizations under Title VII of the
Civil Rights Act of 1964, are available to
nonprofit religious organizations but not to
for-profit secular organizations. Accord-
ingly, the Departments believe it would
be appropriate to define eligible organiza-
tion to include nonprofit religious organi-
zations, but not to include for-profit secu-
lar organizations.
b. Self-Certification
Each organization seeking accommo-
dation under the proposed rules would be
required to self-certify that it meets the
definition of eligible organization, fol-
lowing a self-certification process similar
to that under the temporary enforcement
safe harbor. The self-certification would
also specify the contraceptive services for
which the organization will not establish,
maintain, administer, or fund coverage.
The organization would not be required
to submit the self-certification to any of
the Departments. The organization would
maintain the self-certification (executed
by an authorized representative of the or-
ganization) in its records for each plan
year to which the accommodation applies
and make the self-certification available
for examination upon request so that reg-
ulators, issuers, third party administrators,
and plan participants and beneficiaries
may verify that an organization has quali-
fied for an accommodation, while avoid-
ing any inquiry into the organization’s
character, mission, or practices. The De-
partments intend to specify in guidance the
form to be used for the self-certification.
c. Separate Contraceptive Coverage
Without Cost Sharing for Plan Participants
and Beneficiaries
These proposed rules aim to provide
women with contraceptive coverage with-
out cost sharing and to protect eligible or-
ganizations from having to contract, ar-
range, pay, or refer for contraceptive cov-
erage to which they object on religious
grounds.
1. Insured Plans
To achieve these goals, under HHS’s
authority in section 2792 of the PHS Act
to promulgate rules “necessary or appro-
priate” to carry out the provisions of ti-
tle XXVII of the PHS Act, and the paral-
lel authorities of the Department of Labor
in section 734 of ERISA and the Depart-
ment of the Treasury in section 9833 of the
Code, these proposed rules would provide
that, in the case of an insured group health
plan established or maintained by an eli-
gible organization, the health insurance is-
suer providing group coverage in connec-
tion with the plan would assume sole re-
sponsibility, independent of the eligible or-
ganization and its plan, for providing con-
traceptive coverage without cost sharing,
premium, fee, or other charge to plan par-
ticipants and beneficiaries.
The eligible organization would pro-
vide the issuer with a copy of its self-cer-
April 29, 201310112013–18 I.R.B.

tification. If the plan uses a separate is-
suer for certain coverage, such as prescrip-
tion drug coverage, the eligible organiza-
tion may also need to provide a copy of
its self-certification to the separate issuer.
Nothing more would be required of the el-
igible organization to qualify for the ac-
commodation.
The proposed rules would direct the is-
suer receiving the copy of the self-certi-
fication to ensure that the coverage for
those contraceptive services identified in
the self-certification is not included in the
group policy, certificate, or contract of in-
surance; that such coverage is not reflected
in the group health insurance premium;
and that no fee or other charge in connec-
tion with such coverage is imposed on the
eligible organization or its plan.
The proposed rules would further di-
rect the issuer receiving the copy of the
self-certification to provide contraceptive
coverage under individual policies, certifi-
cates, or contracts of insurance (hereinafter
referred to as individual health insurance
policies) for plan participants and benefi-
ciaries without cost sharing, premium, fee,
or other charge. The coverage would not
be offered by or through a group health
plan. (As discussed later in this section, the
Departments propose that this type of in-
dividual health insurance policy be a new
category of excepted benefits.)
The issuer would automatically enroll
plan participants and beneficiaries in a
separate individual health insurance policy
that covers recommended contraceptive
services. The Departments envision that
the issuer would ensure that contraceptive
coverage for plan participants and benefi-
ciaries is effective at the beginning of the
plan year of their group health plan, to the
extent possible, to prevent a delay or gap
in contraceptive coverage. The eligible
organization would have no role in con-
tracting, arranging, paying, or referring for
this separate contraceptive coverage. Such
coverage would be offered at no charge
to plan participants and beneficiaries, that
is, the issuer would provide benefits for
such contraceptive services without the
imposition of any cost sharing requirement
(such as a copayment, coinsurance, or a
deductible), premium, fee, or other charge,
consistent with section 2713 of the PHS
Act. The requirements of section 2713 of
the PHS Act, its implementing regulations,
and other applicable federal and state law
(as well as their enforcement mechanisms)
would continue to apply with respect to
such coverage. For example, an issuer
providing such coverage could use rea-
sonable medical management techniques
consistent with 45 CFR 147.130(a)(4).
The Departments believe that, in the
case of insured group health plans, this
proposed arrangement would alleviate the
need for the eligible organization to con-
tract, arrange, pay, or refer for contra-
ceptive coverage while providing contra-
ceptive coverage to plan participants and
beneficiaries at no additional cost. Ac-
tuaries, economists, and insurers estimate
that providing contraceptive coverage is
at least cost neutral, and may result in
cost-savings when taking into account all
costs and benefits for the insurer.
12
In this
instance, contraceptive coverage without
cost sharing would be provided to plan
participants and beneficiaries through in-
dividual health insurance policies, sepa-
rate from the group policy through which
all other coverage would be provided to
plan participants and beneficiaries. The
Departments believe that issuers generally
would find that providing such contracep-
tive coverage is cost neutral because they
would be they would be insuring the same
set of individuals under both policies and
would experience lower costs from im-
provements in women’shealth and fewer
childbirths.
The Departments note that a health in-
surance issuer providing coverage in con-
nection with a plan established or main-
tained by an eligible organization would be
held harmless under the accommodation if
a representation by the organization to the
issuer that the organization is an eligible
organization on which the issuer relied in
good faith were determined later to be in-
correct. Conversely, the eligible organiza-
tion and its plan would be held harmless if
the issuer were to fail to comply with the
requirement that it provide separate con-
traceptive coverage for plan participants
and beneficiaries at no charge.
The Departments request comments on
this proposed arrangement.
2. Self-Insured Plans
The Departments are considering al-
ternative approaches for providing par-
ticipants and beneficiaries in self-insured
group health plans established or main-
tained by eligible organizations with con-
traceptive coverage at no additional cost,
while protecting the eligible organizations
from having to contract, arrange, pay, or
refer for such coverage. Under each of
these approaches, a health insurance issuer
that provides individual health insurance
policies for contraceptive coverage for
plan participants and beneficiaries at no
additional cost would be able to offset
the costs of providing such coverage by
claiming an adjustment in Federally-fa-
cilitated Exchange (FFE) user fees that
would reduce the amount of the such fees
for the issuer (or an affiliated issuer), as
discussed later in this section. The De-
partments envision that the issuer would
ensure that contraceptive coverage for
plan participants and beneficiaries is ef-
fective at the beginning of the plan year
of their group health plans, to the extent
possible, to prevent a delay or gap in con-
traceptive coverage. Under each of these
approaches, HHS wouldassistinidentify-
ing issuers offering the separate individual
health insurance policies for contraceptive
coverage.
Under all approaches, if there is a third
party administrator for the self-insured
group health plan of the eligible organ-
ization, the eligible organization would
provide the third party administrator with
a copy of its self-certification. If the plan
uses a separate third party administrator
for certain coverage, such as prescription
drug coverage, the eligible organization
would also provide a copy of its self-cer-
tification to the separate third party ad-
ministrator if the coverage administered
by the separate third party administrator
includes coverageof any contraceptive
service listed in the self-certification.
Further, under all approaches, a third
party administrator receiving a copy of the
self-certification would automatically ar-
range separate individual health insurance
policies for contraceptive coverage from
an issuer providing such polices, as de-
scribed above. The issuer providing the
12
Bertko, John, F.S.A., M.A.A.A., Director of Special Initiatives and Pricing, Centerfor Consumer Information and Insurance Oversight, Centers forMedicare & Medicaid Services, Glied,
Sherry, Ph.D., Assistant Secretary for Planning and Evaluation, Department of Health and Human Services (ASPE/HHS), et al., “The Cost of Covering Contraceptives Through Health
Insurance,” (February 9, 2012), available at:http://aspe.hhs.gov/health/reports/2012/contraceptives/ib.shtml.
2013–18 I.R.B.1012April 29, 2013

coverage (or an affiliated issuer) would re-
ceive an additional adjustment in the user
fees that otherwise would be charged by
an FFE in an amount that would offset a
reasonable charge by the third party ad-
ministrator for performing this service. In
turn,theissuerwouldberequiredtopass
the amount of this additional adjustment
in FFE user fees on to the third party ad-
ministrator as a condition of receiving any
FFE user fee adjustment, and would be
required to attest to HHS that it has in
fact passed the amount of this additional
adjustment on to the third party admin-
istrator. As a condition of payment of
this amount by the issuer, the third party
administrator would not be permitted to
charge any amount to the eligible organiza-
tion, its plan, or to plan participants or ben-
eficiaries for performing the service. The
Departments note that the issuer could ei-
ther be affiliated with or be independent of
the third party administrator.
The Departments solicit comment on
which of the proposed approaches below
would best provide participants and bene-
ficiaries in self-insured group health plans
established or maintained by eligible or-
ganizations with contraceptive coverage at
no additional cost, while protecting eligi-
ble organizations from having to contract,
arrange, pay, or refer for such coverage.
The Departments also request comment on
whether there are other approaches that
should be considered that would achieve
thesamegoals.
Under the first approach, a third party
administrator receiving the copy of the
self-certification would have an economic
incentive to voluntarily arrange for the
separate individual health insurance poli-
cies for contraceptive coverage for plan
participants and beneficiaries because it
would be compensated for a reasonable
charge for automatically arranging for the
contraceptive coverage through payment
by the issuer of the contraceptive cover-
age. Under this approach, in automatically
arranging for the contraceptive coverage,
the third party administrator would be
acting, not as the third party administra-
tor to the self-insured plan of the eligible
organization, but rather in its independent
capacity apart from its capacity as the
agent of the plan. Under this approach,
the self-insured plan of the eligible or-
ganization would be treated as complying
with the requirement to provide contra-
ceptive coverage based on the third party
administrator’s receipt of the copy of the
self-certification.
Under the second approach, coverage
under the plan of the eligible organization
would comply with the requirement to pro-
vide contraceptive coverage without cost
sharing only if the third party administra-
tor administering coverage in connection
with the plan automatically arranges for
an issuer to assume sole responsibility for
providing separate individual health insur-
ance policies offering contraceptive cov-
erage without cost sharing, premium, fee,
or other charge to plan participants and
beneficiaries, the eligible organization, or
its plan. As discussed above, any rea-
sonable administrative costs of the third
party administrator in performing this ser-
vice would be coveredthrough payment by
the issuer of the contraceptive coverage. If
the third party administrator performs the
services, coverage under the plan of the el-
igible organization would comply with 45
CFR 147.130. While the third party ad-
ministrator would not be directly respon-
sible for assuring compliance with section
2713 of the PHS Act, the Departments ex-
pect that third party administrators would
seek to assist eligible organizations such
that eligible organizations would be able to
avail themselves of the proposed accom-
modation.
Under the third approach, the third
party administrator receiving the copy of
the self-certification would be directly re-
sponsible for automatically arranging for
contraceptive coverage for plan partici-
pants and beneficiaries. Specifically, the
self-certification would have the effect of
designating the third party administrator
13
as the plan administrator under section
3(16) of ERISA solely for the purpose
of fulfilling the requirement that the plan
provide contraceptive coverage without
cost sharing. The third party administrator
would satisfy its responsibility to automat-
ically arrange for contraceptive coverage
for plan participants and beneficiaries by
arranging for an issuer to assume sole
responsibility for providing separate indi-
vidual health insurance policies offering
contraceptive coverage without cost shar-
ing, premium, fee, or other charge to plan
participants and beneficiaries, the eligible
organization, or its plan. The Departments
note that there would be no obligation on
a third party administrator to enter into or
continue a third party administration con-
tract with an eligible organization if the
third party administrator were to object to
having to carry out this responsibility. Al-
though this approach would place the legal
responsibility for assuring compliance
with section 2713 of the PHS Act solely
on the third party administrator, it would
have legal implications under ERISA’s
reporting, disclosure, claims processing,
and fiduciary provisions for both the third
party administrator and the eligible organ-
ization. The Departments seek comment
specifically on potential issues arising un-
der ERISA if the third party administrator
were to become the designated plan ad-
ministrator under section 3(16) of ERISA,
and therefore a plan fiduciary, even for the
limited purposes contemplated.
The Departments also seek comment on
whether there is a need to provide an ac-
commodation for self-insured plans of eli-
gible organizations without third party ad-
ministrators, and, if so, how best to ensure
that participants and beneficiaries in such
plans receive separate contraception cov-
erage without cost sharing. No comments
were submitted in response to the request
in the ANPRM on the extent to which there
are such plans without a third party admin-
istrator. The Departments continue to be-
lieve that there are very few, if any, self-in-
sured plans of eligible organizations in this
circumstance.
The Departments solicit comment on
these alternative approaches.
3. Notice of Availability of Contraceptive
Coverage and Coordination of Benefits
The proposed rules would direct a
health insurance issuer providing separate
individual health insurance policies for
contraceptive coverage at no additional
13
To the extent the plan uses more than one third partyadministrator (for example, one pharmacy benefit manager (PBM) to handle claims administration for prescription drugs and another
entity to handle claims for inpatient and outpatient medical/surgical benefits), each third party administrator would become the plan administrator upon receiving the copy of the self-certi-
fication with respect to the types of claims that it normally processes (that is, the PBM would continue to handle claims for prescription drugs and theother entity would continue to handle
claims for inpatient and outpatient medical/surgical benefits), and each would do so in accordance with section 2713 of the PHS Act (even if plan termsmight otherwise provide differently)
as plan administration with an independent funding source.
April 29, 201310132013–18 I.R.B.

cost to participantsand beneficiaries in
plans of eligible organizations to provide
a written notice to plan participants and
beneficiaries regarding the availability
of the separate contraceptive coverage.
Issuers providing such contraceptive cov-
erage would be responsible for providing
the notice of availability of such cover-
age to participants and beneficiaries in
both insured and self-insured group health
plans of eligible organizations. The notice
would be provided directly to plan par-
ticipants and beneficiaries by the issuer,
separate from but contemporaneous with
(to the extent possible) any application
materials distributed in connection with
enrollment (or re-enrollment) in group
coverage established, maintained, or ar-
ranged by the eligible organization in any
plan year to which the accommodation is
to apply. As such, this notice generally
would be provided annually. To satisfy
the proposed notice requirement, issuers
could use the model language set forth in
the proposed rules or substantially similar
language. The Departments request com-
ments on the proposed notice requirement,
including ways to improve the proposed
model language, the timing and delivery
(including electronically) of the notice to
plan participants and beneficiaries, and
whether this notice requirement could be
combined with other existing notice re-
quirements to simplify administration for
issuers.
The Departments also seek comment on
whether there are efficient ways to limit the
benefits provided under the separate indi-
vidual health insurance policies for con-
traceptive coverage to match the contra-
ceptive benefits identified in the self-cer-
tification or whetherthe separate individ-
ual health insurancespolicies for contra-
ceptive coverage shouldsimplycoverthe
full set of recommended contraceptive ser-
vices. One option would be to require co-
ordination of benefits such that the contra-
ceptive coverage is secondary to the cover-
age provided by the group health plan es-
tablished or maintained by the eligible or-
ganization (and any group health insurance
coverage provided in connection with the
plan). The Departments solicit comment
on this issue.
d. Adjustments of Federally-Facilitated
Exchange (FFE) User Fees
To fund contraceptivecoverage for par-
ticipants and beneficiaries in self-insured
plans established or maintained by eligi-
ble organizations at no cost to plan par-
ticipants or beneficiaries, HHS proposes
that the existing proposed FFE user fee
calculation, set forth in the December 7,
2012 proposed rule titled “Patient Protec-
tion and AffordableCareAct;HHSNo-
tice of Benefit and Payment Parameters for
2014” (77 FR 73213), take into account
that an issuer that offers a qualified health
plan (QHP) through an FFE (or an affili-
ated issuer in a state without an FFE) pro-
vides such contraceptive coverage by re-
ducing the amount of the user fee.
Consistent with Office of Management
and Budget (OMB) Circular No. A25-R,
the proposed revised FFE user fee calcula-
tion (which would result in an adjustment
of the FFE user fee) would facilitate the
proposed accommodation of self-insured
plans established or maintained by eligible
organizations by ensuring that plan par-
ticipants and beneficiaries have separate
individual health insurance policies for
contraceptive coverage at no additional
cost such that eligible organizations are
not required to administer or fund such
coverage. It would thereby support many
of the goals of the Affordable Care Act,
including improving the health of the pop-
ulation, reducing health care costs, provid-
ing access to health coverage, encouraging
eligible organizations to continue to offer
health coverage, and ensuring access to
affordable QHPs via efficiently operated
Exchanges. Moreover, as described in the
2012 final rules and the ANPRM, there are
significant benefits associated with con-
traceptive coverage without cost sharing.
Such contraceptive coverage significantly
furthers the governmental interests in pro-
moting public health and in promoting
gender equality.
Under this proposal, the FFE user fee
calculation would take into account con-
traceptive coverage that is provided by an
issuer in a state without an FFE so long as
the issuer is affiliated with an issuer that
offers a QHP through an FFE.
14
The affil-
iated issuer would not be required to be a
QHP issuer. An issuer that provides con-
traceptive coverage in a state without an
FFE could offset the estimated cost of such
coveragethroughanaffiliatedQHPissuer
in a state with an FFE. This would encour-
age issuers to provide this type of cover-
age widely, to meet the goal of provid-
ing all plan participants and beneficiaries
of self-insured plans established or main-
tained by eligible organizations with sep-
arate contraceptive coverage without cost
sharing.
HHS proposes that, in order for the
FFE user fee calculation to take into ac-
count that a QHP issuer (or an affiliated is-
suer) provides contraceptive coverage, the
issuer providing coverage for contracep-
tive services for the plan participants and
beneficiaries of a self-insured plan estab-
lished or maintained by an eligible organi-
zation must provide coverage for all rec-
ommended contraceptive services identi-
fied in the self-certification of the eligible
organization, and do so without cost shar-
ing, premiums, fees, or other costs to the
plan participants and beneficiaries. It also
must pay the reasonable charge of third
party administrators. The contraceptive
coverage would be subject to all applica-
ble federal and state laws, including state
filing and rate review requirements. HHS
seeks comment on ways to streamline the
regulatory processes for, and minimize the
costs of, obtaining approval of such cover-
age in all states.
HHS further proposes that, if an issuer
provides contraceptive coverage to plan
participants and beneficiaries of self-in-
sured plans of eligible organizations at no
additional cost, and it, or another issuer in
the same issuer group, is required to pay
an FFE user fee, an adjustment in the FFE
user fee may be sought for the estimated
cost of the contraceptive coverage. HHS
would use the definition of issuer group
proposed at 45 CFR 156.20 for this pur-
pose. That section proposes that issuer
group means all entities treated under sec-
tion 52(a) or (b) of the Code as a member
of the same controlled group of corpora-
tions as (or under common control with)
a health insurance issuer, or issuers affil-
iated by the common use of a nationally
licensed service mark. HHS seeks com-
ment on whether this definition would pro-
vide the appropriate amount of flexibility
14
For simplicity, the discussion that follows uses the shorthand “contraceptive coverage” to refer to contraceptive coverage for participants and beneficiaries in self-insured plans established
or maintained by eligible organizations at no cost to plan participants or beneficiaries.
2013–18 I.R.B.1014April 29, 2013

in calculating the FFE user fee to correctly
reflect the costs of issuers in states without
an FFE, and on the advantages and disad-
vantages of permitting an adjustment in the
FFE user fee with respect to unaffiliated is-
suers.
Under this proposal, the issuer provid-
ing the contraceptive coverage would pro-
vide certain information and documenta-
tion (jointly with the affiliated QHP issuer
if applicable) to HHS. First, monthly data
on the number of individuals for whom the
contraceptive coverage is being provided
would be submitted, along with an attesta-
tion that a copy of the self-certification of
the eligible organization was provided by
the third party administrator that arranged
for the coverage for the plan participants
and beneficiaries. Second, the issuer(s)
would be required to provide an attestation
that coverage for all recommended contra-
ceptive services identified in the self-certi-
fication of the eligible organization is be-
ing provided, and being provided without
cost sharing, premiums, fee, or other costs
to the plan participants or beneficiaries.
The issuer also would attest to HHS that it
passed the portion of its adjustment attrib-
utable to reasonable charges by third party
administrators on to those parties. Third,
the issuer(s) would be required to iden-
tify the QHP(s) being offered through an
FFE with respect to which the FFE user
fee adjustment is to be made. In addi-
tion, if the issuer providing the contracep-
tive coverage is not the QHP issuer for
which the adjustment in the FFE user fee
is being sought, HHS proposes to require
an attestation that the issuers are from the
same issuer group. Finally, the issuer(s)
wouldberequiredtosubmittoHHSanes-
timate of the cost of the contraceptive cov-
erage, along with data or documentation
supporting that estimate. HHS approval of
the cost estimate would be required before
a QHP issuer could receive an FFE user
fee adjustment. HHS solicits comment on
whether additional information or attesta-
tions should be required of issuers, for ex-
ample, whether issuers should be required
to attest that they provided the required no-
tice of availability of contraceptive cover-
age to plan participants and beneficiaries.
HHS is considering two approaches to
ensuring that the cost estimate reasonably
reflects the cost of the contraceptive cov-
erage. One approach would require the
issuer(s) to submit to HHS the estimated
per capitacost of the contraceptive cov-
erage, as well as an actuarial memoran-
dum prepared by a member of the Amer-
ican Academy of Actuaries in accordance
with generally accepted actuarial princi-
ples and methodologies validating the es-
timate. HHS seeks comment on appropri-
ate standards to guide such calculations.
Under this approach, HHS expects that,
in 2016 and beyond, the estimated cost
of providing the contraceptive coverage
would be based on the issuer’s experience
in previous years.
HHS also proposes that the estimate
of the cost of the contraceptive coverage
could include a reasonable charge for the
issuer’s administrative costs, including the
costs of obtaining regulatory approval of
the contraceptive coverage policy in the
applicable state as well as a third party ad-
ministrator’s charge. HHS seeks comment
on the magnitude of a reasonable admin-
istrative charge. HHS recognizes that the
contraceptive coverage that issuers would
provide under this proposed accommoda-
tion could see limited enrollment in a par-
ticular state. Given the potentially narrow
markets available to the issuers of the con-
traceptive coverage, theper capitacost of
administering this type of coverage may
be higher than that for major medical cov-
erage or other excepted benefits. On the
other hand, given that a third party admin-
istrator would be connecting the plan par-
ticipants and beneficiaries with the issuer,
and there would therefore be reduced mar-
keting costs, the administrative costs could
be lessened. HHS seeks comment on the
appropriate magnitude of these adminis-
trative costs generally, as well as ways of
minimizing the administrative costs. In
particular, HHS notes the issues associ-
ated with reimbursing for fixed costs, in-
cluding the cost of obtaining regulatory ap-
proval for the policy in the applicable state.
Fixed administrative costs could be amor-
tized across the expected life of the policy,
or could be reimbursed in the first year of
operation. HHS seeks comment on the ap-
propriate manner of compensating for such
costs.
HHS also seeks comment on whether
HHS should limit the number of issuers
providing the contraceptive coverage in
each state with respect to which an FFE
user fee adjustment may be made. If HHS
were to modify its proposal in this way,
HHS would add that an issuer must be will-
ing and have the ability to offer the contra-
ceptive coverage to any participant or ben-
eficiary in a self-insured plan of an eligible
organization who resides in the state.
HHS notes that the estimate of the cost
of the contraceptive coverage could in-
clude a reasonable margin. HHS seeks
comment on the magnitude of a reasonable
margin, and notes that the proposed HHS
Notice of Benefit and Payment Parameters
for 2014 proposes a presumed margin of
3 percent within allowable administrative
costs for the risk corridors program.
The proposed inclusion of reasonable
administrative costs and margin in the
estimate of the cost of the contraceptive
coverage is intended to ensure that is-
suers receive reasonable compensation
for providing the contraceptive coverage,
as they would expect to receive in their
other commercial businesses. HHS would
review the submission by the issuer(s) to
ensure that the cost estimate reflects rea-
sonable assumptions and was calculated in
accordance with applicable standards and
generally accepted actuarial principles and
methodologies. HHS would multiply the
estimatedper capitacost of the contracep-
tive coverage by the number of individuals
being provided the contraceptive cover-
age each month in order to determine the
magnitude of the FFE user fee adjustment.
The amount should also take into account
the reasonable administrative charges of
third party administrators.
Alternatively, HHS could provide a
nationalper capitaestimate for the cost of
the contraceptive coverage, which would
also include adjustments for reasonable
administrative costs and margin. This
estimate could then be multiplied by the
monthly enrollment in the contraceptive
coverage in order to determine the mag-
nitude of the FFE user fee adjustment for
each QHP issuer concerned. This latter
approach would provide for a more stan-
dardized approach, but could result in FFE
user fee adjustments that do not fund the
entire cost of the contraceptive coverage
for some issuers, or that overcompensate
other issuers. The former approach, how-
ever, would place a greater administrative
burden on issuers, and would require a
more in-depth review by HHS. HHS seeks
comment on these two approaches, as well
as alternative approaches for determining
the estimated costof the contraceptive
coverage.
April 29, 201310152013–18 I.R.B.

In both approaches to establishing an
estimated cost of providing the contracep-
tive coverage described above, HHS seeks
comment on the appropriate manner of ac-
counting for a third party administrator’s
administrative costs of arranging for the
contraceptive coverage in the issuer’s esti-
mated cost of the contraceptive coverage.
For example, a flat administrative fee ap-
proved by HHS could be included in that
estimated cost — with that flat adminis-
trative fee including an appropriate margin
for the third party administrator. However,
such an approach risks providing over- or
under-incentives to the third party admin-
istrator for arrangingfor the contraceptive
coverage, if the flat administrative fee is
too high or too low. Alternatively, the
third party administrator’s actual reason-
able charge, or actual reasonable adminis-
trative costs, for arranging the contracep-
tive coverage could be included in the es-
timated cost of the contraceptive coverage.
HHS seeks comment on these and other
approaches to estimating the third party
administrator’s administrative costs, and
how HHS may ensure that they reflect rea-
sonable administrative costs.
HHS proposes that, if the information
described previously is provided and the
cost estimate is approved, the FFE user fee
will be reduced for the issuer of the identi-
fied QHP(s) by the amount of the approved
estimate of the cost of the contraceptive
coverage (multiplied by enrollment in the
coverage for the month). While a highly
unlikely occurrence given the relatively
small population under consideration,
HHS proposes that, if the amount of the
adjustment is greater than the amount of
the obligation to pay the FFE user fee in a
particular month, the issuer of the identi-
fied QHP(s) will be provided a credit for
the FFE user fee charged in succeeding
months in the amount of the excess, con-
sistent with OMB Circular No. A25-R.
HHS seeks comment on whether a QHP
issuer’s FFE user fee should be adjusted
for any excess in succeeding months at all;
whether, if a QHP issuer’s FFE user fee
is adjusted for any excess in succeeding
months, any time limit should be placed
on how much later the adjustment should
take place; and alternative methods of
compensating an issuer with greater con-
traceptive coverage costs than its (or its
affiliated QHP issuer’s) FFE user fees.
HHS also proposes that an issuer
providing contraceptive coverage for
which the FFE user fee has been adjusted
(whether the adjustment was provided to
the issuer or an affiliated QHP issuer)
must maintain for 10 years and make
available to HHS upon request: documen-
tation demonstrating that the contraceptive
coverage was provided to participants or
beneficiaries in a self-insured plan of an
eligible organization, as evidenced by the
copy of the self-certification that was pro-
vided by the third party administrator that
arranged for such coverage; documenta-
tion demonstrating that the contraceptive
coverage was provided without the im-
position of any cost sharing, premium,
fee, or other charge; documentation or
data supporting the estimate of the cost
of the contraceptive coverage; and doc-
umentation or data on the actual cost of
providing the contraceptive coverage.
This record-keeping requirement is con-
sistent with timeframes under the False
Claims Act, 31 U.S.C. 3729–3733. HHS
is considering mechanisms for ensuring
program integrity with respect to the pro-
vision of the contraceptive coverage under
this proposed accommodation. These
mechanisms may include requiring coop-
eration with audits and investigations, and
requiring corrective action. HHS seeks
comment on the oversight requirements
that should be implemented with respect
to the contraceptive coverage under this
proposal.
Finally, HHS is proposing that a QHP
issuer that is to receive an FFE user fee ad-
justment as described above prior to Jan-
uary 1, 2014, will be provided a credit in
the amount of the adjustment beginning in
January 2014. HHS seeks comment on
issuers’ ability to fund the contraceptive
coverage under the proposal between the
end of the temporary enforcement safe har-
bor and December 31, 2013, if HHS is not
able to provide the FFE user fee adjust-
ment until January 2014.
The Departments also seek comment on
alternative ways to finance separate con-
traceptive coverage without cost sharing
with respect to participants and beneficia-
ries in self-insured plans of eligible orga-
nizations.
e. Treatment of Multiple Employer Group
Health Plans
The Departments recognize that, in
some instances, several affiliated employ-
ers — only some of which are eligible
organizations or religious employers —
offer health coverage to their employees
and their covered dependents through a
single group health plan. The Departments
considered allowing all employers in such
instances to qualify for an accommodation
or the religious employer exemption if any
single employer met the definition of el-
igible organization or religious employer.
Alternatively, the Departments considered
precluding all employers in such instances
from qualifying for an accommodation or
the religious employer exemption if any
single employer failed to meet the defini-
tion of eligible organization or religious
employer.
The Departments propose to make
the accommodation or the religious em-
ployer exemption available on an em-
ployer-by-employer basis. That is, each
employer would have to independently
meet the definition of eligible organiza-
tion or religious employer in order to take
advantage of the accommodation or the
religious employer exemption with re-
spect to its employees and their covered
dependents. Conversely, an employer that
did not meet the definition of eligible or-
ganization or religious employer could
not take advantage of the accommodation
or the religious employer exemption with
respect to its employees and their covered
dependents. This approach would prevent
what could be viewed as a potential way
for employers that are not eligible for the
accommodation or the religious employer
exemption to avoidthe contraceptive cov-
erage requirement by offering coverage in
conjunction with an eligible organization
or religious employer through a common
plan. The Departments seek comment on
this approach, including comments on the
extent to which an employer-by-employer
approach would pose administrative chal-
lenges for plans and issuers, as well as
comments on alternative approaches.
f. Student Health Insurance Coverage
Many institutions of higher education
administer programs that provide students
and their dependents with access to health
2013–18 I.R.B.1016April 29, 2013

coverage. Some institutions of higher edu-
cation sponsor self-insured student health
plans, but the vast majority of student
health plans are insured, meaning that a
health insurance issuer contracts with the
institution of higher education to issue
a blanket health insurance policy, from
which students can buy coverage. Under
final rules published by HHS on March 21,
2012, student health insurance coverage is
a type of individual health insurance cov-
erage offered to students and their covered
dependents under a written agreement be-
tween an institution of higher education
and an issuer.
15
Some religiously affiliated colleges
and universities object to signing a written
agreement for student health insurance
coverage that provides benefits for con-
traceptive services. Such colleges and
universities sometimes include funding
for student health plans in their student fi-
nancial aid packages and object to funding
student health plans that include coverage
for contraceptive services.
The proposed rules would provide for
an accommodation forstudent health in-
surance coverage arranged by a nonprofit
religious institution of higher education
with religious objections to contracep-
tive coverage comparable to the proposed
accommodation for group health insur-
ance coverage provided in connection
with a group health plan established or
maintained by a nonprofit religious organ-
ization with religious objections to con-
traceptive coverage.Accordingly, among
other things, upon receiving a copy of
the self-certification from an institution of
higher education that meets the criteria for
being an eligible organization, an issuer
offering student health insurance coverage
would provide contraceptive coverage,
without cost sharing or additional pre-
mium, fee, or other charge, directly to
student enrollees and their covered depen-
dents, independent of the issuer’s written
agreement with the institution of higher
education to offer the student health plan.
The Departments solicit comments on this
proposal.
g. Contraceptive-OnlyExcepted Benefits
In order to implement the proposed ac-
commodations, it would be necessary and
appropriate to establish a new contracep-
tive-only excepted benefits category. Sec-
tions 2722(c)(2) and 2763(b) of the PHS
Act provide that the requirements of parts
A and B of title XXVII of the PHS Act
do not apply to any individual health in-
surance coverage in relation to its provi-
sion of excepted benefits described in sec-
tion 2791(c)(2) of the PHS Act if the ben-
efits are provided under a separate policy,
certificate, or contract of insurance. Sec-
tion 2791(c)(2) of the PHS Act provides
that this category of excepted benefits in-
cludes limited scope dental or vision bene-
fits, as well as benefits for long-term care,
nursing home care, home health care, or
community-based care, or any combina-
tion thereof. The law authorizes similar
limited benefits to be specified in rule as
excepted benefits. Additionally, section
2792 of the PHS Act authorizes HHS to
promulgate such rules as may be neces-
sary or appropriate to carry out the provi-
sions of title XXVII of the PHS Act. Par-
allel provisions in section 734 of ERISA
and section 9833 of the Code do the same
with respect to the Departments of Labor
and the Treasury.
Pursuant to the authority in section
2791(c)(2) of the PHS Act (and compan-
ionprovisionsinERISAandtheCode),
the proposed rules would provide that
benefits for contraceptive services only,
when provided under a separate individual
market health insurance policy, certifi-
cate, or contract of insurance constitute
excepted benefits (subject to the condi-
tions discussed later in this section). The
Departments propose to establish this new
category of excepted benefits to ensure
that individual health insurance policies
providing contraceptive coverage offered
by an issuer pursuant to the proposed ac-
commodations are not subject to certain
generally applicable PHS Act and Af-
fordable Care Act requirements, such as
guaranteed availability (section 2702 of
the PHS Act) given the unique nature of
this coverage. Thus, for example, while
issuers would offer this coverage to plan
participants and beneficiaries in plans
established or maintained by eligible orga-
nizations, issuers would not be required to
make this coverage available to all other
individuals in a state. These proposed
amendments are reflected in proposed 45
CFR 148.220(b).
Notwithstanding this proposed ex-
cepted benefits status, the Departments
believe that a core set of basic consumer
protection requirements should apply to
individual health insurance policies pro-
viding contraceptive-only coverage. This
core set of consumer protection require-
ments would be drawn from the broader
set of requirements applicable to individ-
ual health insurance coverage under the
PHS Act. This core set would include
the requirements regarding guaranteed
renewability of coverage (section 2703
of the PHS Act), the prohibition against
lifetime and annual dollar limits on ben-
efits (section 2711 of the PHS Act), the
prohibition against rescissions of coverage
(section 2712 of the PHS Act), and internal
appeals and external review rights (sec-
tion 2719 of the PHS Act). Accordingly,
pursuant to the authority in section 2792
of the PHS Act to promulgate rules that
are “necessary or appropriate” to carry out
section 2713 of the PHS Act (and compan-
ion provisions in ERISA and the Code),
the proposed rules would require compli-
ance with these provisions of federal law
as a condition of excepted benefits sta-
tus. The Departments welcome comments
on which requirements of the PHS Act,
ERISA, and the Code should or should
not apply to individual health insurance
policies that providecontraceptive-only
coverage. We also seek comments on
how to simplify the establishment of these
products and how best to ensure their
availability in all states, including alter-
natives to excepted benefits in any state
without any such product.
D. No Effect on Other Law
The religious employer exemption
and accommodations in these proposed
rules are intended to have meaning solely
with respect to the contraceptive cover-
age requirement under section 2713 of
the PHS Act and the companion provi-
sions of ERISA and the Code. Whether
15
Because student health plans are not employment-based, they are not group health plans under federal law. Section 2791(a)(1) of the PHS Act defines “group health plan” as an employee
welfare benefit plan as defined in section 3(1) of ERISA to the extent that the plan provides medical care to employees and their dependents directly orthrough insurance, reimbursement, or
otherwise.
April 29, 201310172013–18 I.R.B.

an employer or organization (including
an institution of higher education) is des-
ignated as “religious” for these purposes
is not intended as a judgment about the
mission, sincerity, or commitment of the
employer or organization (including an in-
stitution of higher education), or intended
to differentiate among the religious merits,
commitment, mission, or public or private
standing of religious entities. The use of
such designation is limited solely to defin-
ing the class of employers or organizations
(including institutions of higher educa-
tion) that would qualify for the religious
employer exemption and accommodations
under these proposed rules. The definition
of religious employer or eligible organi-
zation in these proposed rules is not being
proposed to apply withrespect to, or relied
upon for the interpretation of, any other
provision of the PHS Act, ERISA, the
Code, or any other provision of federal
law, nor is it intended to set a precedent for
any other purpose. For example, nothing
in these proposed rules should be con-
strued as affecting the interpretation of
federal or state civil rights statutes, such as
Title VII of the Civil Rights Act of 1964
or Title IX of the Education Amendments
of 1972.
Furthermore, nothing in these proposed
rules would preclude employers or others
from expressing their opposition, if any,
to the use of contraceptives; require any-
one to use contraceptives; or require health
care providers to prescribe contraceptives
if doing so is against their religious beliefs.
Finally, the provisions of these pro-
posed rules would not prevent states from
enacting stronger consumer protections
than these minimum standards. Federal
health insurance regulation generally es-
tablishes a federal floor to ensure that
individuals in every state have certain
basic protections. State health insurance
laws requiring coverage for contracep-
tive services that provide more access to
contraceptive coverage than the federal
standards would therefore continue under
the proposed rules. The Departments so-
licit comment on the interaction between
state law and these proposed rules.
IV. Economic Impact and Paperwork
Burden
A. Executive Orders 12866 and 13563
— Department of Health and Human
Services and Department of Labor
Executive Orders 12866 and 13563
direct agencies to assess all costs and ben-
efits of available regulatory alternatives
and, if regulation is necessary, to select
regulatory approaches that maximize net
benefits (including potential economic,
environmental, and public health and
safety effects; distributive impacts; and
equity). Executive Order 13563 empha-
sizes the importance of quantifying both
costs and benefits, reducing costs, harmo-
nizing rules, and promoting flexibility.
Section 3(f) of Executive Order 12866
defines a “significant regulatory action” as
an action that is likely to result in a rule: (1)
having an annual effect on the economy of
$100 million or more in any one year, or
adversely and materially affecting a sec-
tor of the economy, productivity, compe-
tition, jobs, the environment, public health
or safety, or state, local, or tribal govern-
ments or communities (also referred to as
“economically significant”); (2) creating
a serious inconsistency or otherwise inter-
fering with an action taken or planned by
another agency; (3) materially altering the
budgetary impacts of entitlement grants,
user fees, or loan programs or the rights
and obligations of recipients thereof; or (4)
raising novel legal or policy issues arising
out of legal mandates, the President’s pri-
orities, or the principles set forth in the Ex-
ecutive Order.
A regulatory impact analysis must be
prepared for major rules with econom-
ically significant effects ($100 million
or more in any one year), and an “eco-
nomically significant” regulatory action is
subject to review by the Office of Man-
agement and Budget (OMB). The Depart-
ments have concluded that these proposed
rules are not likely to have economic im-
pacts of $100 million or more in any one
year, and therefore do not meet the defini-
tion of “economically significant” under
Executive Order 12866.
1. Need for Regulatory Action
As stated earlier in this preamble, the
Departments previously issued amended
interim final rules authorizing an exemp-
tion for group health plans established or
maintained by religious employers (and
any group health insurance coverage pro-
vided in connection with such plans) from
certain coverage requirements under sec-
tion 2713 of the PHS Act (76 FR 46621,
August 3, 2011). The amended interim
final rules were finalized on February
15, 2012 (77 FR 8725). The Depart-
ments are proposing in these proposed
rules to amend the definition of religious
employer in the HHS rule at 45 CFR
147.130(a)(1)(iv)(B) (incorporated by ref-
erence in the rules ofthe Departments of
Labor and the Treasury) by eliminating the
first three prongs of the definition of reli-
gious employer that was established in the
2012 final rules and clarifying the fourth
prong. Under this proposal, an employer
that is an organization that is organized
and operates as a nonprofit entity and is
referred to in section 6033(a)(3)(A)(i) or
(iii) of the Code would be considered a
religious employer and its group health
plan would qualify for the exemption
from the requirement to cover contracep-
tive services. In addition, the proposed
rules would establish accommodations for
health coverage established or maintained
or arranged by eligible organizations,
which have religious objections to contra-
ceptive coverage, while providing women
contraceptive coverage without cost shar-
ing.
2. Anticipated Effects
The Departments expect that these pro-
posed rules would not result in any addi-
tional significant burden on or costs to the
affected entities.
B. Special Analyses — Department of the
Treasury
For purposes of the Department of the
Treasury, it has been determined that this
notice of proposed rulemaking is not a sig-
nificant regulatory action as defined in Ex-
ecutive Order 12866, as amended by Exec-
utive Order 13563. Therefore, a regulatory
assessment is not required. It has also been
determined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C. chap-
ter 5) does not apply to this proposed rule.
It is hereby certified that the collections of
information contained in this notice of pro-
posed rulemaking would not have a sig-
nificant impact on a substantial number of
2013–18 I.R.B.1018April 29, 2013

small entities. Accordingly, a regulatory
flexibility analysis under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) is not
required.
The proposed rules would require each
organization seeking accommodation un-
der the proposed rules to self-certify that
it meets the definition of eligible organiza-
tion in the proposed rules. Each organiza-
tion must self-certify that: (1) on account
of religious objections, it opposes provid-
ing coverage for some or all of the contra-
ceptive items or services that it would oth-
erwise be required to provide; (2) it is or-
ganized and operates as a nonprofit entity;
and (3) it holds itself out as a religious or-
ganization. The self-certification must be
executed by an authorized representative
of the organization. The organization must
maintain the self-certification in its records
for each plan year to which the accommo-
dation is to apply and make it available for
examination upon request. The proposed
rules would also require each eligible or-
ganization that establishes or maintains an
insured group health plan to provide a copy
of its self-certification to the group health
insurance issuer. If the group health plan
of the eligible organization is self-insured,
the proposed rules would direct the eligi-
ble organization to provide a copy of its
self-certification to the third party admin-
istrator.
The Departments intend to specify
in guidance the form to be used for the
self-certification, similar to the form pre-
viously prescribed in guidance for the
temporary enforcement safe harbor. The
Departments are unable to estimate the
number of eligible organizations that
would seek an accommodation. The De-
partments seek comment on the likely
number of eligible organizations seeking
an accommodation. Of the eligible or-
ganizations, some would likely be small
entities. It is estimated that each eligible
organization would need only approxi-
mately 50 minutes of labor (30 minutes
of clerical labor at a cost of $30.64 per
hour, 10 minutes for a manager at a cost
of $55.22 per hour, 5 minutes for legal
counsel at a cost of $83.10 per hour, and 5
minutes for a senior executive at a cost of
$112.43 per hour) each year to prepare and
provide the information in the self-certi-
fication. This would not be a significant
economic impact. For these reasons, this
information collection requirement would
not have a significant impact on a substan-
tial number of small entities.
The proposed rules also would require
health insurance issuers providing separate
contraceptive coverage to provide written
notice to plan participants and beneficia-
ries regarding the availability of the con-
traceptive coverage. The notice would be
provided separate from but contemporane-
ous with (to the extent possible) any ap-
plication materialsdistributed in connec-
tion with enrollment (or re-enrollment) in
group coverage established, maintained, or
arranged by the eligible organization in
any plan year to which the accommoda-
tion is to apply. The proposed rules contain
model language for issuers to use to satisfy
the notice requirement. There are 446 is-
suers in the individual and group markets.
It is believed that very few, if any, of them
are small entities. Moreover, the cost for
preparation and distribution of the notice
would not be significant. It is estimated
that each issuer would need approximately
1 hour of clerical labor (at $31.64 per hour)
and 15 minutes of management review (at
$55.22 per hour) to prepare the notices for
a total cost of approximately $44. It is
estimated that each notice would require
$0.46 in postage and $0.05 in materials
cost (paper and ink) and the total postage
and materials cost for each notice sent via
mail would be $0.51. For these reasons,
these information collection requirements
would not have a significant impact on a
substantial number of small entities.
HHS is soliciting public comment on
each of these issues for purposes of the
following section as well.
Pursuant to section 7805(f) of the Code,
this proposed rule has been submitted to
the Chief Counsel for Advocacy of the
Small Business Administration for com-
ment on its impact on small business.
C. Paperwork Reduction Act —
Department of Health and Human
Services
Under the Paperwork Reduction Act of
1995, HHS is required to provide 60-day
notice in theFederal Registerand so-
licit public comment before an information
collection requirement (ICR) is submitted
to the Office of Management and Budget
(OMB) for review and approval. These
proposed rules contain proposed ICRs that
are subject to review by OMB. A descrip-
tion of these provisions is given in the fol-
lowing paragraphs with an estimate of the
annual burden. In order to fairly evalu-
ate whether an ICR should be approved by
OMB, section 3506(c)(2)(A) of the Paper-
work Reduction Act of 1995 requires that
HHS solicit public comment on the follow-
ing issues:
•The need for the information collection
and its usefulness in carrying out the
proper functions of HHS.
•The accuracy of our estimate of the
information collection burden.
•The quality, utility, and clarity of the
information to be collected.
•Recommendations to minimize the in-
formation collection burden on the af-
fected public, including automated col-
lection techniques.
HHS is soliciting public comment on
each of these issues for the following sec-
tions of these proposed rules that contain
proposed ICRs. Average labor costs (in-
cluding fringe benefits) used to estimate
the costs are calculated using data avail-
able from the Bureau of Labor Statistics.
1. Self-Certification (§§147.131(b)(4),
147.131(c)(1), 147.131(c)(2))
Each organization seeking accommo-
dation under the proposed rules would
be required to self-certify that it meets
the definition of an eligible organization.
The self-certification would be executed
by an authorized representative of the
organization and would also specify
the contraceptive services for which the
organization will not establish, main-
tain, administer, or fund coverage. The
self-certification would not be submit-
ted to any of the Departments. The
form that would be used by organiza-
tions for their self-certification would
be specified. This form is available
for inspection athttp://www.cms.gov/
Regulations-and-Guidance/Legislation/
PaperworkReductionActof1995/
PRA-Listing.html.The organization
would maintain the self-certification in
its records for each plan year to which
the accommodation is to apply. The
eligible organization would need to
provide a copy of its self-certification to a
health insurance issuer (for insured group
health plans or student health insurance
April 29, 201310192013–18 I.R.B.

coverage) or to a third party administrator
(for self-insured group health plans).
HHS does not have an estimate for how
many organizations would seek an accom-
modation. HHS seeks comment on the
likely number of organizations seeking an
accommodation or the number of partic-
ipants and beneficiaries in the plans of
such organizations. Therefore, the burden
for only one eligible organization, as op-
posed to all eligible organizations in total,
is estimated. It is assumed that, for each
eligible organization, clerical staff would
gather and enter the necessary information,
send the self-certification electronically to
the issuer or third party administrator, and
retain a copy for record-keeping, a man-
ager and legal counsel would review it,
and a senior executive would execute it.
HHS estimates that an organization would
need approximately 50 minutes (30 min-
utes of clerical labor at a cost of $30.64
per hour, 10 minutes for a manager at a
cost of $55.22 per hour, 5 minutes for legal
counsel at a cost of $83.10 per hour, and 5
minutes for a senior executive at a cost of
$112.43 per hour) to execute the self-cer-
tification. Therefore, the total annual bur-
den for preparing and providing the infor-
mation in the self-certification would be
approximately $41 for each eligible organ-
ization.
With respect to self-insured plans of eli-
gible organizations, the third party admin-
istrator would provide a health insurance
issuer a copy of the self-certification of
the eligible organization. The third party
administrator would be able to provide a
copy of the self-certification to the issuer
electronically at minimal cost.
2. Notice of Availability of Contraceptive
Coverage (§147.131(d))
The proposed rules would direct a
health insurance issuer providing sepa-
rate individual contraceptive coverage
at no additional cost to participants and
beneficiaries in insured plans of eligi-
ble organizations (or to student enrollees
and covered dependents in student health
insurance coverage arranged by eligible
organizations) and to participants and ben-
eficiaries in self-insured plans of eligible
organizations whose coverage is automat-
ically arranged for them by a third party
administrator to provide a written notice
to such plan participants and beneficiaries
(or to such student enrollees and covered
dependents) regarding the separate con-
traceptive coverage. The notice would be
separate from but contemporaneous with
(to the extent possible) any application
materials distributed in connection with
enrollment (or re-enrollment) in group
coverage of the eligible organization in
any plan year to which the accommoda-
tion is to apply and would be provided
annually. To satisfy the proposed notice
requirement, issuers could use the model
language set forth in the proposed rules or
substantially similar language.
It is unknown how many issuers pro-
vide health insurance coverage in con-
nection with insured plans of eligible
organizations or how many third party
administrators provide services to self-in-
sured plans of eligible organizations or
how many issuers would provide sep-
arate individual contraceptive coverage
to plan participants and beneficiaries of
self-insured plans of eligible organiza-
tions. Therefore, the burden for only one
issuer, as opposed to all issuers in total,
is estimated. It is estimated that each is-
suer would need approximately 1 hour of
clerical labor (at $31.64 per hour) and 15
minutes of management review (at $55.22
per hour) to prepare the notices for a total
cost of approximately $44. It is estimated
that each notice would require $0.46 in
postage and $0.05 in materials cost (paper
and ink) and the total postage and materi-
als cost for each notice sent via mail would
be $0.51.
3. FFE User Fee Adjustments
(§156.50(d))
In order for a QHP issuer to be eligi-
ble for the proposed FFE user fee adjust-
ment, the proposed rules would provide
that the issuer providing the contraceptive
coverage would provide certain informa-
tion and documentation (jointly with the
affiliated QHP issuer for which the reduc-
tion in the FFE user fee is being sought, if
the issuers are not the same) to HHS. First,
monthly data on the number of individuals
for whom the contraceptive coverage is be-
ing provided would be required, along with
an attestation that a copy of the self-cer-
tification of the eligible organization was
provided by the third party administrator
that arranged for the coverage for the plan
participants and beneficiaries. Second, the
issuer would provide an attestation that
coverage for all recommended contracep-
tive services identified in the self-certifi-
cation of the eligible organization is be-
ing provided, and being provided without
cost sharing, premiums, fee, or other costs
to the plan participants or beneficiaries.
The issuer also would attest to HHS that it
passed the portion of its adjustment attrib-
utable to reasonable charges by third party
administrators on to those parties. Third,
the issuer(s) would identify the QHP(s) be-
ing offered through an FFE with respect to
which the FFE user fee reduction is to be
applied. In addition, where the issuer pro-
viding the contraceptive coverage is not
the QHP issuer for which the reduction in
the FFE user fee is being sought, an attes-
tation that the issuers are from the same
issuer group would be submitted. Finally,
the issuer(s) would submit to HHS an esti-
mate of the cost of the contraceptive cover-
age, along with data or documentation sup-
porting that estimate. HHS approval of the
cost estimate would be required before a
QHP issuer could receive an FFE user fee
adjustment.
Although the number of QHP issuers
that would seek an FFE user fee adjust-
ment is unknown at this point, HHS antic-
ipates that a small number of issuer groups
would provide such contraceptive cover-
age nationwide, and that, for purposes of
efficiency, those issuer groups would con-
solidate their applications for FFE user fee
adjustments with fewer than 9 issuers of
QHPs on FFEs. Collections from fewer
than 10 persons are exempt from the Pa-
perwork Reduction Act under 44 U.S.C.
3502(3)(A)(i). Therefore, HHS does not
plan to seek OMB approval for this pro-
posed ICR. However, in the event that, by
the time of the issuance of the final rules,
HHS believes that the number of QHP is-
suers that would seek an FFE user fee ad-
justment would be greater than 9, HHS
would seek OMB approval for this pro-
posed ICR.
To obtain copies of the supporting
statement and any related forms for the
proposed ICRs referenced above, access
CMS’s web site athttp://www.cms.gov/
Regulations-and-Guidance/Legislation/
PaperworkReductionActof1995/
PRA-Listing.htmlor e-mail your request,
including your address, phone number,
OMB number, and CMS document
identifier, topaperwork@cms.hhs.gov,or
2013–18 I.R.B.1020April 29, 2013

call the Reports Clearance Office at (410)
786–1326.
If you comment on these proposed
ICRs, please do either of the following:
1. Submit your comments electroni-
cally as specified in the ADDRESSES sec-
tion of these proposed rules; or
2. Submit your comments to the Office
of Information and Regulatory Affairs, Of-
fice of Management and Budget, Atten-
tion: CMS Desk Officer, 9968-P, FAX:
(202) 395–5806, or e-mail:OIRA_submis-
sion@omb.eop.gov.
D. Paperwork Reduction Act
—Department of Labor and Department
of the Treasury
As noted above, each organization
seeking accommodation under the pro-
posed rules would be required to self-cer-
tify that it meets the definition of an eligi-
ble organization. This proposed require-
ment, which is the same in all three sets of
proposed rules, is set out in proposed 26
CFR 54.9815–2713A(b)(4) and proposed
29 CFR 2590.715–2713A(b)(4). The De-
partments are soliciting public comments
for 60 days concerning this record-keeping
requirement. The Departments will sub-
mit a copy of these proposed rules to OMB
in accordance with 44 U.S.C. 3507(d) for
review of the proposed ICRs. The Depart-
ments and OMB are particularly interested
in comments that:
•Evaluate whether the collection of in-
formation is necessary for the proper
performance of the functions of the
agency, including whether the infor-
mation will have practical utility;
•Evaluate the accuracy of the agency’s
estimate of the burden of the collection
of information, including the validity
of the methodology and assumptions
used;
•Enhance the quality, utility, and clarity
of the information to be collected; and
•Minimize the burden of the collection
ofinformationonthosewhoaretore-
spond, including through the use of
appropriate automated, electronic, me-
chanical, or othertechnological collec-
tion techniques or other forms of in-
formation technology, for example, by
permitting electronic submission of re-
sponses.
Comments should be sent to the Office
of Information and Regulatory Affairs,
Attention: Desk Officer for the Em-
ployee Benefits Security Administration
either by FAX to (202) 395–5806 or by
e-mail tooira_submission@omb.eop.gov.
A copy of the proposed ICRs may
be obtained by contacting the PRA
addressee: G. Christopher Cosby, Office
of Policy and Research, Department
of Labor, Employee Benefits Security
Administration, 200 Constitution Avenue,
N.W., Room N–5718, Washington, DC
20210; telephone: (202) 693–8410;
FAX: (202) 219–4745 (please note
that these numbers are not toll-free
numbers); e-mail:ebsa.opr@dol.gov.
Proposed ICRs submitted to OMB
also are available atwww.reginfo.gov
(http://www.reginfo.gov/public/do/
PRAMain).
Consistent with the HHS analysis pre-
sented above, the Departments do not
have an estimate for how many organi-
zations would seek an accommodation.
The Departments seek comment on the
likely number of organizations seeking an
accommodation and the number of par-
ticipants and beneficiaries in the plans of
such organizations. The Departments rely
on the same estimates noted above: 50
minutes per organization to execute the
self-certification (i.e., approximately $41
for each eligible organization).
With respect to self-insured plans of eli-
gible organizations, the third party admin-
istrator would provide a health insurance
issuer a copy of the self-certification of
the eligible organization. The third party
administrator would be able to provide a
copy of the self-certification to the issuer
electronically at minimal cost.
The Departments note that persons are
not required to respond to, and generally
are not subject to any penalty for failing to
comply with, an ICR unless the ICR has
a valid OMB control number. The paper-
work burden estimates are summarized as
follows:
Type of Review: New collection.
Agencies: Employee Benefits Security
Administration, Department of Labor; In-
ternal Revenue Service, Department of the
Treasury.
Title: Self-Certification; Preventive
Services Coverage.
OMB Number:XXXX–XXXX;
XXXX–XXXX.
Affected Public: Business or other for-
profit; not-for-profit institutions.
Total Respondents: Unknown.
Total Responses: Unknown.
Frequency of Response: Once.
Estimated Total Annual Burden Hours:
50 minutes per respondent.
Estimated Total Annual Burden Cost:
Unknown.
V. Unfunded Mandates Reform Act
For purposes of the Unfunded Man-
dates Reform Act of 1995 (Pub. L. 104–4),
as well as Executive Order 12875, these
proposed rules do not include any pro-
posed federal mandate that may result in
expenditures by state, local, or tribal gov-
ernments, nor does it include any proposed
federal mandates that may impose an an-
nual burden of $100 million, adjusted for
inflation, or more on the private sector.
16
VI. Federalism — Department of
Health and Human Services and
Department of Labor
Executive Order 13132 outlines funda-
mental principles of federalism, and re-
quires the adherence to specific criteria
by federal agencies in the process of their
formulation and implementation of poli-
cies that have “substantial direct effects”
on states, the relationship between the fed-
eral government and states, or the distribu-
tion of power and responsibilities among
the various levels of government. Fed-
eral agencies promulgating rules that have
these federalism implications must consult
with state and local officials, and describe
the extent of their consultation and the na-
ture of the concerns of state and local offi-
cials in the preamble to the rules.
In the Departments’ view, these pro-
posed rules have federalism implications,
but the federal implications are substan-
tially mitigated because, with respect to
health insurance issuers, 15 states have en-
acted specific laws, rules, or bulletins that
meet or exceed the federal standards re-
quiring coverage of specified preventive
services without cost sharing. The re-
maining states which provide oversight for
these federal law requirements are doing
so using their general authority to enforce
16
In early 2013, that threshold level is approximately $139 million.
April 29, 201310212013–18 I.R.B.

these federal standards. Therefore, the
proposed rules are not likely to require
substantial additional oversight of states
by HHS.
In general, section 514 of ERISA pro-
vides that state laws are superseded to the
extent that they relate to any covered em-
ployee benefit plan, and preserves state
laws that regulate insurance, banking, or
securities. ERISA also prohibits states
from regulating a covered plan as an in-
surance or investment company or bank.
HIPAA added a new preemption provision
to ERISA (as well as to the PHS Act) nar-
rowly preempting state requirements for
group health insurance coverage. States
may continue to apply state law require-
ments but not to the extent that such re-
quirements prevent the application of the
federal requirement that group health in-
surance coverage provided in connection
with group health plans provide coverage
for specified preventive services without
cost sharing. HIPAA’s Conference Re-
port states that the conferees intended the
narrowest preemption of state laws with
regard to health insurance issuers (H.R.
Conf. Rep. No. 104–736, 104
th
Cong. 2d
Session 205, 1996). State insurance laws
that are more stringent than the federal re-
quirement are unlikely to “prevent the ap-
plication of” the preventive services cov-
erage provision, and therefore are not pre-
empted. Accordingly, states have signif-
icant latitude to impose requirements on
health insurance issuers that are more re-
strictive than those in federal law.
Guidance conveying this interpretation
was published in theFederal Registeron
April 8, 1997 (62 FR 16904), and Decem-
ber 30, 2004 (69 FR 78720), and these
proposed rules would clarify and imple-
ment the statute’s minimum standards and
would not significantly reduce the discre-
tion given the states by the statute.
The PHS Act provides that the states
may enforce the provisions of title XXVII
of the PHS Act as they pertain to issuers,
but that the Secretary of HHS will en-
force any provisions that a state does not
have authority to enforce or that a state has
failed to substantially enforce. When ex-
ercising its responsibility to enforce provi-
sions of the PHS Act, HHS works coop-
eratively with the state for the purpose of
addressing the state’sconcerns and avoid-
ing conflicts with the exercise of state au-
thority.
17
HHS has developed procedures
to implement its enforcement responsibili-
ties, and to afford states the maximum op-
portunity to enforce the PHS Act’s require-
ments in the first instance. In compliance
with Executive Order13132’s requirement
that agencies examine closely any policies
that may have federalism implications or
limit the policymaking discretion of states,
the Departments have engaged in numer-
ous efforts to consult and work coopera-
tively with affected state and local offi-
cials.
In conclusion, throughout the process
of developing these proposed rules, to the
extent feasible within the specific preemp-
tion provisions of ERISA and the PHS Act,
the Departments have attempted to bal-
ance states’ interests in regulating health
plans and health insurance issuers, and the
rights of those individuals that Congress
intended to protect in the PHS Act.
VII. Statutory Authority
The Department of the Treasury regula-
tions are proposed to be adopted pursuant
to the authority contained in sections 7805
and 9833 of the Code.
The Department of Labor regulations
are proposed to be adopted pursuant
to the authority contained in 29 U.S.C.
1002(16), 1027, 1059, 1135, 1161–1168,
1169, 1181–1183, 1181 note, 1185, 1185a,
1185b, 1185d, 1191, 1191a, 1191b, and
1191c; sec. 101(g), Public Law 104–191,
110 Stat. 1936; sec. 401(b), Public Law
105–200, 112 Stat. 645 (42 U.S.C. 651
note); sec. 512(d), Public Law 110–343,
122 Stat. 3881; sec. 1001, 1201, and
1562(e), Public Law 111–148, 124 Stat.
119, as amended by Public Law 111–152,
124 Stat. 1029; Secretary of Labor’s Or-
der 3–2010, 75 FR 55354 (September 10,
2010).
The Department of Health and Hu-
man Services regulations are proposed
to be adopted pursuant to the author-
ity contained in sections 2701 through
2763, 2791, and 2792 of the PHS Act
(42 U.S.C. 300gg through 300gg–63,
300gg–91, and 300gg–92), as amended;
and Title I of the Affordable Care Act, sec-
tions 1301–1304, 1311–1312, 1321–1322,
1324, 1334, 1342–1343, 1401–1402, and
1412, Pub. L. 111–148, 124 Stat. 119
(42 U.S.C. 18021–18024, 18031–18032,
18041–18042, 18044, 18054, 18061,
18063, 18071, 18082, 26 U.S.C. 36B, and
31 U.S.C. 9701).
*****
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Accordingly, 26 CFR part 54 is pro-
posed to be amended as follows:
PART 54—PENSION EXCISE TAXES
Paragraph
1.The authority citation for
part 54 con
tinues to read in part as follows:
Authority
:26 U.S.C. 7805.
***
Par. 2Section 54.9801–2 is amended
by revising the definition ofexcepted ben-
efitsas follows:
§54.9801–2 Definitions.
*****
Excepted
benefitsmeans the benefits
describe
d as excepted in §54.9831(c), or
45 CFR §14
8.220 (describing when indi-
vidual h
ealth insurance policies constitute
excepte
d benefits).
*****
Par. 3.Section 54.9815–2713 is
amended by adding paragraph (a)(1) in-
troductory text and revising paragraph
(a)(1)(iv) to read as follows:
§54.9815–2713 Coverage of preventive
health services.
(a)Ser
vices—(1)In general.Be-
ginni
ng at the time described in para-
graph
(b) of this section and subject to
§54.9
815–2713A, a group health plan, or
a heal
th insurance issuer offering group
healt
h insurance coverage, must provide
cove
rage for all of the following items
and s
ervices, and may not impose any cost
shar
ing requirement (such as a copayment,
coin
surance, or a deductible) with respect
to th
ose items and services:
*****
17
This authority applies to insurance issued with respect to group health plans generally, including plans covering employees of church organizations. Thus, this discussion of federalism
applies to all group health insurance coverage that is subject to the PHS Act, including those church plans that provide coverage through a health insurance issuer (but not to church plans that
do not provide coverage through a health insurance issuer).
2013–18 I.R.B.1022April 29, 2013

(iv) With respect to women, to the ex-
tent not described in paragraph (a)(1)(i)
of this section, evidence-informed preven-
tive care and screenings provided for in
binding comprehensive health plan cov-
erage guidelines supported by the Health
Resources and Services Administration, in
accordance with 45 CFR 147.131(a).
*****
Par. 4.Section 54.9815–2713A is
added to read as follows:
§54.9815–2713A Accommodations in
connection with coverage of preventive
health services.
(a)Eligible organizations. An eligible
organization is an organization that satis-
fies all of the following requirements:
(1) The organization opposes providing
coverage for some or all of any contracep-
tive services required to be covered under
§54.9815–2713(a)(1)(iv) on account of re-
ligious objections.
(2) The organization is organized and
operates as a nonprofit entity.
(3) The organization holds itself out as
a religious organization.
(4) The organization maintains in its
records a self-certification, made in the
manner and form specified by the Secre-
tary of Health and Human Services, for
each plan year to which the accommo-
dation is to apply, executed by a person
authorized to make the certification on
behalf of the organization, indicating that
the organization satisfies the criteria in
paragraphs (a)(1) through (3) of this sec-
tion, and, specifying those contraceptive
services for which the organization will
not establish, maintain, administer, or fund
coverage, and makes such certification
available for examination upon request.
(b)Contraceptive coverage – self-in-
sured group health plan coverage.[Re-
served.]
(c)Contraceptive coverage – insured
group health plan coverage—(1) A group
health plan established or maintained by
an eligible organization and that pro-
vides benefits through one or more is-
suers complies with any requirement
under §54.9815–2713(a)(1)(iv) to pro-
vide contraceptive coverage if the eligible
organization or plan administrator fur-
nishes each issuer that would otherwise
provide coverage for any contraceptive
services required to be covered under
§54.9815–2713(a)(1)(iv) with a copy of
the self-certification described in para-
graph (a)(4) of this section.
(2) A group health insurance issuer that
receives a copy of the self-certification de-
scribed in paragraph (a)(4) of this section
with respect to a plan for which the issuer
would otherwise provide coverage for
any contraceptive services required to be
covered under §54.9815–2713(a)(1)(iv)
must automatically provide health in-
surance coverage for any contracep-
tive services required to be covered by
§54.9815–2713(a)(1)(iv) and identified in
the self-certification, through a separate
health insurance policy that is excepted
under 45 CFR 148.220(b)(7), for each plan
participant and beneficiary. The issuer
providing the individual market excepted
benefits policy may not impose any cost
sharing requirement (such as a copayment,
coinsurance, or a deductible) with respect
to coverage of those services, or impose
any premium, fee, or other charge, or
portion thereof, directly or indirectly, on
the eligible organization, its group health
plan, or plan participants or beneficiaries
with respect to coverage of those services.
(d)Notice of availability of contra-
ceptive coverage. An issuer providing
contraceptive coverage arranged pursuant
to paragraph (b) or (c) of this section must
provide to plan participants and benefi-
ciaries written notice of the availability of
the contraceptive coverage, separate from
but contemporaneous with (to the extent
possible) application materials distributed
in connection with enrollment (or re-en-
rollment) in group coverage of the eligible
organization for any plan year to which
this paragraph applies. The following
model language, or substantially similar
language, may be used to satisfy the notice
requirement of this paragraph: “The or-
ganization that establishes and maintains,
or arranges, your health coverage has cer-
tified that your group health plan qualifies
for an accommodation with respect to the
federal requirement to cover all Food and
Drug Administration-approved contracep-
tive services for women, as prescribed by
a health care provider, without cost shar-
ing. This means that your health coverage
will not cover the following contraceptive
services: [contraceptive services speci-
fied in self-certification]. Instead, these
contraceptive services will be covered
through a separate individual health in-
surance policy, which is not administered
or funded by, or connected in any way to,
your health coverage. You and any cov-
ered dependents will be enrolled in this
separate individual health insurance policy
at no additional cost to you. If you have
any questions about this notice, contact
[contact information for health insurance
issuer].”
Signed this30thday of January, 2013.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement,
Internal Revenue Service.
April 29, 201310232013–18 I.R.B.

Signed this30thday of January, 2013.
Phyllis C. Borz
i,
Assistant Secr
etary,
Employee Benef
its
Security Admin
istration,
DepartmentofL
abor.
Dated: Januar
y 29, 2013.
Marilyn Tavenner,
Acting Administrator,
Centers for Medicare &
Medicaid Services.
Approved: January 29, 2013.
Kathleen Sebelius,
Secretary,
Department of Health
and Human Services.
(Filed by the Office of the Federal Register on February 1, 2013, 11:15 a.m., and published in the issue of the Federal Register for February 6, 2013, 78 F.R. 8456)
Request for Comments on
Voluntary Tip Compliance
Agreements
Announcement 2013–29
The Internal Revenue Service (IRS) is
interested in updating its suite of voluntary
tip compliance agreements and, as part of
this process, is seeking public comments.
Background
In Announcement 2012–25, 2012–26
I.R.B. 1054, the IRS stated that it planned
to solicit public comments on possible
changes to the existing Tip Rate Determi-
nation and Education Program (TRDEP).
In particular, the IRS is interested in pub-
lic comments regarding updating two
types of voluntary tip compliance agree-
ments under TRDEP, namely, Tip Rate
Determination Agreements (TRDAs) and
Tip Reporting Alternative Commitments
(TRACs).
The IRS introduced TRDEP in Octo-
ber 1993 to the food and beverage indus-
try. In the years that followed, TRDEP was
expanded to the cosmetology, transporta-
tion, gaming, and other tipping industries.
TRDEP is voluntary and focuses on edu-
cation and voluntary tip compliance agree-
ments rather than traditional enforcement
actions. Over subsequent years, the IRS
developed and updated voluntary tip com-
pliance agreements to help employees ac-
curately report their tip income and to help
employers meet their filing and reporting
obligations.
TRDAs and TRACs have been in ex-
istence since the 1990s and may not take
advantage of advances in Point of Sale
systems and electronic payment settlement
method technologies.
The Gaming Industry Tip Compli-
ance Agreement (GITCA), also part of
TRDEP, was updated in 2007 by Rev.
Proc. 2007–32, 2007–22 I.R.B. 1322.
Therefore, the IRS is not seeking com-
ments on GITCA at this time.
Objective
A key objective of updating TRDAs
and TRACs is to improve employee tip re-
porting compliance and utilize technologi-
cal advancements to decrease taxpayer and
administrative burden. The new agree-
ments will incorporate:
1. A greater emphasis on computations
derived from Point of Sale systems
and the use of electronic payment set-
tlement methods,i.e., credit and debit
cards
2. A greater emphasis on accurate tip re-
porting by indirectly tipped employ-
ees
3. The distinction between tips and ser-
vice charges
4. A commitment by the IRS not to ini-
tiate a tip examination on participants
5. A streamlined agreement
6. Updated definitions
7. Simplified, expedited education re-
quirements for existing employees
8. Streamlined application and termina-
tion procedures
9. A streamlined process to add ad-
ditional establishments to existing
agreements
10. Streamlined access to TRDEP re-
sources to assist with agreement ad-
ministration
The IRS is seeking comments on the
manner to incorporate the items listed
above and other items the public be-
lieves would increase tip reporting com-
pliance and ease taxpayer burden. The
IRS welcomes comments on all aspects
2013–18 I.R.B.1024April 29, 2013

of TRDAs and TRACs but is particu-
larly interested in suggestions regarding
processes, computational methodologies,
agreement language,and suggested topics
for “Frequently Asked Questions.” Elec-
tronic samples of the existing TRDAs and
TRACs (some industry specific) are avail-
able onIRS.gov; enter “MSU tips” in the
search box. They may also be obtained
from the IRS office listed below:
Internal Revenue Service
National Tip Reporting Compliance
3251 North Evergreen Dr. NE
Grand Rapids, MI 49525
How to Submit Comments
Comments may be submitted on or be-
fore [Insert 90 day period], either elec-
tronically atTIP.Program@irs.govor in
writing to the IRS office listed above.
Please include the number of this an-
nouncement in the subject line of your
email or in the header of your written com-
ments.
April 29, 201310252013–18 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2013–18 I.R.B.iApril 29, 2013

Numerical Finding List
1
Bulletins 2013–1 through 2013–18
Announcements:
2013-1, 2013-1 I.R.B.251
2013-2, 2013-2 I.R.B.271
2013-3, 2013-2 I.R.B.271
2013-4, 2013-4 I.R.B.440
2013-5, 2013-3 I.R.B.306
2013-6, 2013-3 I.R.B.307
2013-7, 2013-3 I.R.B.308
2013-8, 2013-4 I.R.B.440
2013-9, 2013-4 I.R.B.441
2013-10, 2013-3 I.R.B.311
2013-11, 2013-6 I.R.B.483
2013-12, 2013-11 I.R.B.651
2013-13, 2013-9 I.R.B.532
2013-14, 2013-11 I.R.B.651
2013-15, 2013-11 I.R.B.652
2013-16, 2013-14 I.R.B.738
2013-17, 2013-16 I.R.B.911
2013-19, 2013-14 I.R.B.760
2013-20, 2013-14 I.R.B.761
2013-21, 2013-17 I.R.B.980
2013-22, 2013-17 I.R.B.981
2013-23, 2013-16 I.R.B.940
2013-26, 2013-16 I.R.B.940
2013-27, 2013-17 I.R.B.981
2013-28, 2013-17 I.R.B.982
2013-29, 2013-18 I.R.B.1024
Notices:
2013-1, 2013-3 I.R.B.281
2013-2, 2013-6 I.R.B.473
2013-3, 2013-7 I.R.B.484
2013-4, 2013-9 I.R.B.527
2013-5, 2013-9 I.R.B.529
2013-6, 2013-10 I.R.B.540
2013-7, 2013-6 I.R.B.477
2013-8, 2013-7 I.R.B.486
2013-9, 2013-9 I.R.B.529
2013-10, 2013-8 I.R.B.503
2013-11, 2013-11 I.R.B.610
2013-12, 2013-10 I.R.B.543
2013-13, 2013-12 I.R.B.659
2013-14, 2013-13 I.R.B.712
2013-15, 2013-14 I.R.B.739
2013-16, 2013-14 I.R.B.740
2013-18, 2013-14 I.R.B.742
2013-19, 2013-14 I.R.B.743
2013-20, 2013-15 I.R.B.902
2013-21, 2013-15 I.R.B.903
2013-22, 2013-15 I.R.B.904
2013-23, 2013-16 I.R.B.906
2013-24, 2013-16 I.R.B.909
Notices— Continued:
2013-25, 2013-17 I.R.B.978
2013-26, 2013-18 I.R.B.984
2013-27, 2013-18 I.R.B.985
Proposed Regulations:
REG-155929-06, 2013-11 I.R.B.650
REG-106918-08, 2013-13 I.R.B.714
REG-141066-09, 2013-3 I.R.B.289
REG-148873-09, 2013-7 I.R.B.494
REG-102966-10, 2013-10 I.R.B.579
REG-120391-10, 2013-18 I.R.B.1005
REG-140649-11, 2013-12 I.R.B.666
REG-118315-12, 2013-14 I.R.B.746
REG-122707-12, 2013-5 I.R.B.450
REG-148500-12, 2013-13 I.R.B.716
Revenue Procedures:
2013-1, 2013-1 I.R.B.1
2013-2, 2013-1 I.R.B.92
2013-3, 2013-1 I.R.B.113
2013-4, 2013-1 I.R.B.126
2013-5, 2013-1 I.R.B.170
2013-6, 2013-1 I.R.B.198
2013-7, 2013-1 I.R.B.233
2013-8, 2013-1 I.R.B.237
2013-9, 2013-2 I.R.B.255
2013-10, 2013-2 I.R.B.267
2013-11, 2013-2 I.R.B.269
2013-12, 2013-4 I.R.B.313
2013-13, 2013-6 I.R.B.478
2013-14, 2013-3 I.R.B.283
2013-15, 2013-5 I.R.B.444
2013-16, 2013-7 I.R.B.488
2013-17, 2013-11 I.R.B.612
2013-18, 2013-8 I.R.B.503
2013-19, 2013-11 I.R.B.648
2013-20, 2013-14 I.R.B.744
2013-21, 2013-12 I.R.B.660
2013-22, 2013-18 I.R.B.985
2013-23, 2013-17 I.R.B.978
Revenue Rulings:
2013-1, 2013-2 I.R.B.252
2013-2, 2013-10 I.R.B.533
2013-3, 2013-8 I.R.B.500
2013-4, 2013-9 I.R.B.520
2013-5, 2013-9 I.R.B.525
2013-6, 2013-13 I.R.B.701
2013-7, 2013-11 I.R.B.608
2013-8, 2013-15 I.R.B.763
2013-9, 2013-15 I.R.B.764
Tax Conventions:
2013-16, 2013-14 I.R.B.738
Treasury Decisions:
9601, 2013-10 I.R.B.535
9603, 2013-3 I.R.B.273
9605, 2013-11 I.R.B.587
9606, 2013-11 I.R.B.586
9607, 2013-6 I.R.B.469
9608, 2013-3 I.R.B.274
9609, 2013-12 I.R.B.655
9610, 2013-15 I.R.B.765
9611, 2013-13 I.R.B.699
9612, 2013-13 I.R.B.678
9613, 2013-15 I.R.B.900
9614, 2013-17 I.R.B.947
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin
2012–52, dated December 27, 2012.
April 29, 2013ii2013–18 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2013–1 through 2013–18
Announcements:
2012-42
Obsoleted by
T.D. 9610, 2013-15 I.R.B.765
2013-12
Supplemented by
Ann. 2013-22, 2013-17 I.R.B.981
Notices:
87-64
Obsoleted by
T.D. 9614, 2013-17 I.R.B.947
2000-45
Modified and superseded by
Notice 2013-18, 2013-14 I.R.B.742
2010-60
Obsoleted by
T.D. 9610, 2013-15 I.R.B.765
2011-14
Amplified and supplemented by
Notice 2013-7, 2013-6 I.R.B.477
2011-34
Obsoleted by
T.D. 9610, 2013-15 I.R.B.765
2011-38
Obsoleted by
REG-148873-09, 2013-7 I.R.B.494
2011-53
Obsoleted by
T.D. 9610, 2013-15 I.R.B.765
2012-60
Superseded by
Notice 2013-1, 2013-3 I.R.B.281
2013-1
Modified and superseded by
Notice 2013-16, 2013-14 I.R.B.740
Proposed Regulations:
REG-140668-07
Corrected by
Ann. 2013-6, 2013-3 I.R.B.307
Revenue Procedures:
87-57
Modified by
Rev. Proc. 2013-13, 2013-6 I.R.B.478
Revenue Procedures— Continued:
2004-66
Modified and superseded by
Rev. Proc. 2013-11, 2013-2 I.R.B.269
2008-35
Modified and superseded by
Rev. Proc. 2013-14, 2013-3 I.R.B.283
2008-50
Modified and superseded by
Rev. Proc. 2013-12, 2013-4 I.R.B.313
2011-14
Modified by
Rev. Proc. 2013-20, 2013-14 I.R.B.744
2011-49
Modified by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2011-52
Modified and partly superseded by
Rev. Proc. 2013-15, 2013-5 I.R.B.444
2011-55
Amplified and supplemented by
Notice 2013-7, 2013-6 I.R.B.477
2011-61
Superseded by
Rev. Proc. 2013-17, 2013-11 I.R.B.612
2011-62
Superseded by
Rev. Proc. 2013-18, 2013-8 I.R.B.503
2012-1
Superseded by
Rev. Proc. 2013-1, 2013-1 I.R.B.1
2012-2
Superseded by
Rev. Proc. 2013-2, 2013-1 I.R.B.92
2012-3
Superseded by
Rev. Proc. 2013-3, 2013-1 I.R.B.113
2012-4
Superseded by
Rev. Proc. 2013-4, 2013-1 I.R.B.126
2012-5
Superseded by
Rev. Proc. 2013-5, 2013-1 I.R.B.170
2012-6
Superseded by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2012-7
Superseded by
Rev. Proc. 2013-7, 2013-1 I.R.B.233
Revenue Procedures— Continued:
2012-8
Superseded by
Rev. Proc. 2013-8, 2013-1 I.R.B.237
2012-9
Superseded by
Rev. Proc. 2013-9, 2013-2 I.R.B.255
2012-10
Superseded by
Rev. Proc. 2013-10, 2013-2 I.R.B.267
2012-30
Corrected and clarified by
Ann. 2013-3, 2013-2 I.R.B.271
Updated by
Ann. 2013-10, 2013-3 I.R.B.311
2012-46
Corrected by
Ann. 2013-11, 2013-6 I.R.B.483
2013-1
Corrected by
Ann. 2013-9, 2013-4 I.R.B.441
2013-4
Modified by
Rev. Proc. 2013-22, 2013-18 I.R.B.985
2013-6
Revised by
Ann. 2013-15, 2013-11 I.R.B.652
Corrected by
Ann. 2013-13, 2013-9 I.R.B.532
2013-8
Modified by
Rev. Proc. 2013-22, 2013-18 I.R.B.985
2013-14
Modified by
Rev. Proc. 2013-19, 2013-11 I.R.B.648
Revenue Rulings:
92-19
Supplemented in part by
Rev. Rul. 2013-4, 2013-9 I.R.B.520
Treasury Decisions:
9564
Corrected by
Ann. 2013-4, 2013-4 I.R.B.440
Amended by
Ann. 2013-7, 2013-3 I.R.B.308
9604
Corrected by
Ann. 2013-19, 2013-14 I.R.B.760
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin 2012–52, dated December 27,
2012.
2013–18 I.R.B.iiiApril 29, 2013

INDEX
Internal Revenue Bulletins 2013–1 to 2013–18
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parentheses refer to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Closing agreements (RP 12) 4,313; (Ann 21) 17,980
Defined benefit plans, funding (Notice 11) 11,610
Determination letters, issuing procedure (RP 6) 1,1; correction
(Ann 13) 9,441
Elimination of single-sum distribution option (or other acceler-
ated benefits) under defined benefit plan of plan sponsor in
bankruptcy (TD 9601) 10,535
Full funding limitations, weighted average interest rates, seg-
ment rates for:
January 1, 2013 (Notice 2) 6,473
March 1, 2013 (Notice 23) 16,906
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,113
Associate Chief Counsel (International ) (RP 7) 1,233
And general information letters, procedures (RP 4) 1,126
User fees, request for letter rulings (RP 8) 1,237
Pre-Approved Plans
Opinion and Advisory Letters (RP 22)18,985
Proposed regulation:
26 CFR 54.9815–2705, added; 54.9802–1, revised; rules
relating to incentives for nondiscriminatory wellness pro-
grams (REG–122707–12) 5,450
Public comment invited on recommendations for 2013-2014
Guidance Priority List (Notice 22) 15,904
Qualified plans, determination letters (Ann 15) 11,652
Qualified retirement plans, covered compensation, permitted dis-
parity (RR 2) 10,533
Regulation:
26 CFR 1.1411(d)–4, amended; elimination of single-sum dis-
tribution option (or other accelerated benefits) under de-
EMPLOYEE PLANS—Cont.
fined benefit plan of plan sponsor in bankruptcy (TD 9601)
10,535
Rules relating to incentives for nondiscriminatory wellness pro-
grams (REG–122707–12) 5,450
Technical advice to IRS employees (RP 5) 1,170
Weighted average interest rates:
Segments rates for:
February 2013 (Notice 6) 10,540
EMPLOYMENT TAX
Employment tax obligations of a third party that enter into a ser-
vice agreement with an employer to take on the employer’s
employment tax responsibilities (REG–102966–10) 10,579
IRS request for comments on voluntary tip compliance agree-
ments (Ann 29)18,1024
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Proposed regulation:
26 CFR 31.3504–2, added; employment tax obligations of a
third party that enter into a service agreement with an em-
ployer to take on the employer’s employment tax responsi-
bilities (REG–102966–10) 10,579
Public comment invited on recommendations for 2013-2014
Guidance Priority List (Notice 22) 15,904
Technical Advice Memoranda (TAMs) (RP 2) 1,92
Transit benefit adjustment for 2012 (Notice 8) 7,486
ESTATE TAX
Cost-of-living adjustments for inflation for 2013 (RP 15) 5,444
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Public comment invited on recommendations for 2013-2014
Guidance Priority List (Notice 22) 15,904
Technical Advice Memoranda (TAMs) (RP 2) 1,92
EXCISE TAX
Biodiesel claims, alternative fuel claims, section 34 claims, sec-
tion 6426, section 6427 (Notice 26)18,984
Health insurance providers fee (REG–118315–12) 14,746
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Payout requirements for Type III supporting organizations
that are not functionally integrated (TD 9605) 11,587;
(REG–155929–06) 11,650
Proposed regulations:
26 CFR 1.509(a)–4, amended; payout requirements for Type
III supporting organizationsthat are not functionally inte-
grated (REG–155929–06) 11,650
April 29, 2013iv2013–18 I.R.B.

EXCISE TAX—Cont.
Public comment invited on recommendations for 2013-2014
Guidance Priority List (Notice 22) 15,904
Regulations:
26 CFR 1.509(a)–4, amended; 1.509(a)–4T, added;
53.4943–11, amended; payout requirements for Type III
supporting organizations that are not functionally inte-
grated (REG–155929–06) 11,650
Taxable medical devices (Ann 19) 14,760
Technical Advice Memoranda (TAMs) (RP 2) 1,92
EXEMPT ORGANIZATIONS
Letter rulings:
And determination letters:
Areas which will not be issued from Associates Chief
Counsel and Division Counsel (TE/GE) (RP 3) 1,113
And general information letters, procedures (RP 4) 1,126
Exemption application determination letter rulings under
sections 501, 509, 4940, 4942, and 4947 (RP 10) 2,267
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 2,255
User fees, request for letter rulings (RP 8) 1,237
Payout requirementsfor Type III supporting organizations
that are not functionally integrated (TD 9605) 11,587;
(REG–155929–06) 11,650
Proposed regulations:
26 CFR 1.509(a)–4, amended; payout requirements for Type
III supporting organizations that are not functionally inte-
grated (REG–155929–06) 11,650
Public comment invited on recommendations for 2013-2014
Guidance Priority List (Notice 22) 15,904
Technical Advice Memoranda (TAMs) (RP 2) 1,92
GIFT TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Public comment invited on recommendations for 2013-2014
Guidance Priority List (Notice 22) 15,904
Technical Advice Memoranda (TAMs) (RP 2) 1,92
INCOME TAX
Biodiesel claims, alternative fuel claims, section 34 claims, sec-
tion 6426, section 6427 (Notice 26)18,984
Adjusted applicable Federal rates under section 1288, changes in
method of determination (Notice 4) 9,440
Advance pricing and mutual agreement program (Ann 17) 16,
911
Allocation of research credit tomembers of controlled groups
(Notice 20) 15,902
Applicability of de minimis partner rule (TD 9607) 6,469
Application of section 172(h) including consolidated groups,
correction (Ann 6) 3,307
INCOME TAX—Cont.
Awards for information relating to detecting underpay-
ments of tax or violations of the Internal Revenue laws
(REG–141066–09) 3,289; hearing (Ann 20) 14,761
Bonds:
Premiums carryforwards (REG–140437–12) 7,
Qualified Zone Academy Bonds limitation for years 2012 and
2013 (Notice 3) 7,484
Qualified exempt facility bonds and qualified residential
rental projects (Notice 9) 9,529
Business use of home, optional safe harbor method for expenses
(RP 13) 6,478
Capitalization of plants with a preproductive period in excess of
2 years (Notice 18) 14,742; (RP 20) 14,744
Cost-of-living adjustments for inflation for 2013 (RP 15) 5,444
Corporations:
Certain outbound property transfers by domestic corpora-
tions; certain stock distributions by domestic corporations
(TD 9614) 17,947
Coverage of certain preventive services under the ACA
(REG–120391–10)18,1005
Credits:
Low-income housing (Notice 15) 14,739
Qualifying Advanced Energy Project Credit Program – Phase
II Program (Notice 12) 10,543
Deductions for qualified film and television production costs (TD
9603) 3,273
Depreciation deduction, 2013 Automobile inflation adjustments
(RP 21) 12,660
Disciplinary actionsinvolving attorneys,certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 26) 16,940
Dual-Use property request for comments (Notice 13) 12,659
Elimination of the Cumulative Bulletin after volume 2008–2
(Ann 12) 11,651
E-signature standards (Ann 8) 4,440
Estimated tax penalty relief for farmers and fishermen (Notice 5)
9,529
Examination of returns and claimsfor return, credit, or abate-
ments, determination of correct tax liability (RP 16) 7,488
Exceptions to loss transaction filter (RP 11) 2,269
Extension of the effective date of Rev. Proc. 2013–14 (RP 19)
11,648
Failure to file gain agreement and other required filings
(REG–140649–11) 12,666
Foreign earned income exclusion (RP 23) 17,978
Forms:
W-2 and W-3 (RP 18) 8,503
1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G, re-
quirements for filing electronically, correction (Ann 3) 2,
271
Guidance to tax return preparers consents to disclose and con-
sentstousetaxreturninformationintheForm1040series,
update to Rev. Proc. 2008–35 (TD 9608) 3,275;(RP14)3,
283
Gross income, per capita payments from proceeds of settlements
of Indian tribal trust cases (Notice 1) 3,281
2013–18 I.R.B.vApril 29, 2013

INCOME TAX—Cont.
Inflation adjustment factor and phase-out amount for the noncon-
ventional source fuel credit (Notice 25) 17,978
Information reporting:
Mortgage assistance program (Notice 7) 6,308
By domestic entities under section 6083D (Notice 10) 8,311
By foreign financial institutions and withholding on payments
to foreign financial institutions and other foreign entities
(TD 9610) 15,765
Insurance companies:
Interest rate tables (RR 4) 9,520
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
January 2013 (RR 1) 2,252
February 2013 (RR 3) 8,500
March 2013 (RR 7) 11,608
April 2013 (RR 9) 15,764
Rates:
Underpayments and overpayments, quarter beginning:
April 1, 2013 (RR 6) 13,701
Internal Revenue Bulletin: proposal to eliminate the Index Sys-
tem (Ann 22) 17,981
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,113
Associate Chief Counsel (International ) (RP 7) 1,233
And information letters issued by Associate Offices, determi-
nation letters issued by Operating Divisions (RP 1) 1,1;
correction (Ann 9) 3,441
Maximum vehicle values for which the special valuation rules of
Reg. 1.61–21(d) and (e) may be used in 2013 (Notice 27)18,
985
Mortgage assistance programs, income exclusion, safe harbor
deduction method (Notice 7) 6,477
Noncompensatory partnership options (TD 9612) 13,678;cor-
rection (Ann 28) 17,982
Paper copies of the Internal Revenue Bulletin elimination of the
Cumulative Bulletin (Ann 12) 11,651
Penalty relief for delayed 2012 Forms (Notice 24) 16,909
Per capita payments from proceeds or settlements of Indian tribal
trust cases (Notice 16) 14,740
Postponement of deadline for section 165(i) election for Hurri-
cane Sandy losses (Notice 21) 15,903
Proposed regulations:
26 CFR 1.171–2, amended; bond premiums carryforwards
(REG–140437–12) 7,
26 CFR 1.761–3, amended; 1.1234–3, amended; treat-
ment of grantor of an option on a partnership interest
(REG–106918–08) 13,714
26 CFR 1.5000A–0 thru –5, added; shared responsibility
payment for not maintaining minimum essential coverage
(REG–148500–12) 13,716
26 CFR 1.6042–4, amended; 1.6043–4, amended; 1.6044–5,
amended; 1.6045–2 thru 5, amended; 1.6049–6, amended;
INCOME TAX—Cont.
1.6050A–1, amended; 1.6050E–1, amended; 1.6050N–1,
amended; 1.6050P–1, amended; 1.6050S–1, –3, amended;
301.6109–4, added; truncated taxpayer identification num-
bers (REG–148873–09) 7,494
26 CFR 301.7623–1, revised; 301.7623–2 thru –4, added;
301.6103(h)(4)–1, added; awards for information relating
to detecting underpayments of tax or violations of the In-
ternal Revenue laws (REG–141066–09) 3,289
26 CFR 54.9815–2713 amended; 54.9801–2 amended; 16
CFR 54.9815–2713A amended; coverage of certain preven-
tive services under the ACA (REG–120391–10) 18,1005
Proposal to eliminate the Index System (Ann 22) 17,981
Public comment invited on recommendations for 2013-2014
Guidance Priority List (Notice 22) 15,904
Publications:
1141, General Rules and Specifications for Form W-2 and
W-3 (RP 18) 8,503
1167, General Rules and Specifications for Forms and Sched-
ules (RP 17) 11,612
1220, Specifications for Filing Forms 1097, 1098, 1099,
3921, 3922, 5498, 8935, and W-2G Electronically, correc-
tion(Ann3)2,271
4436, General Rules and Specifications for Substitute Form
941 and Schedule B (Form 941), and Schedule R (Form
941), correction (Ann 11) 6,483
Qualified board or exchange (RR 5) 9,525
Qualifying advanced coal project program (Ann 2) 2,271
Reduced 2009 estimated income tax payments for individuals
with small business income (TD 9613) 15,900
Regulations:
26 CFR 1.36B–2, amended; shared responsibility payment for
not maintaining minimum essential coverage (TD 9611) 13,
699
26 CFR 1.367(a)–1, –3, amended; 1.367(a)–7, added;
1.367–8, amended; 1.367(b)–0, amended; 1.367(b)–4,
amended; 1.367(e)–1, amended; 1.1248–1 revised;
1.1248–6, amended; 1.248–1, amended; 1.1248(f)–1,
added; 1.1248(f)–2, added; 1.1248(f)–3, added;
1.6038B–1, revised; 1.1602–101, added; corporations, cer-
tain outbound property transfers by domestic corporations;
certain stock distributions by domestic corporations (TD
9614) 17,947
26 CFR 1.171–1, amended; 1.704–1, –3, amended; 1.1721–2,
added; 1.761–3, added; 1.1272–1, amended; 1.1273–2,
amended; 1.1275–4, amended; noncompensatory partner-
ship options (TD 9612) 13,678
26 CFR 1.181–0, amended; 1.181–0T, removed; 1.181–1,
amended; 1.181–1T, amended; 1.181–6, amended;
1.181–6T, removed; deductions for qualified film and
television production costs (TD 9603) 3,273
26 CFR 1.304–4, revised; 1.304–4T, removed; use of con-
trolled corporations to avoid the application of section 304
(TD 9606) 11,586
26 CFR 1.1471–1, removed; 1.1471–0, added, 1.1471–1,
added; 1.1471–2, added; 1.1471–3, added; 1.1471–4,
added; 1.1471–5, added; 1.1474–6, added; 1.1472–1,
April 29, 2013vi2013–18 I.R.B.

INCOME TAX—Cont.
added; 1.1473–1, added; 1.1474–1, added; 1.1474–2,
added; 1.1474–3, added; 1.1474–5, added; 1.1474–5,
added; 1.1474–6, added; 1.1471–7, added; 301–1474–1,
added; by foreign financial institutions and withholding on
payments to foreign financial institutions and other foreign
entities (TD 9610) 15,765
26 CFR 1.6654–2, revised; 1.6654–2T, removed; reduced
2009 estimated income tax payments for individuals with
small business income (TD 9613) 15,900
26 CFR 301.7216–0, amended; 301.7216–0T, removed;
301.7216–2, amended; 301.7216–2T, removed; guidance
to tax return preparers, consents to disclose and consents to
use tax returns information in the Form 1040 series, update
to Rev. Proc. 2008–35 (TD 9608) 3,275
Rules for certain reserves (Notice 19) 14,743
Standard Industry Fare Level (SIFL) (RR 8) 15,763
Shared responsibility payment for not maintaining minimum es-
sential coverage (TD 9611) 13,699; (REG–148500–12) 13,
716; correction (Ann 27) 17,981
Substitute forms, W-2 (Copy A) and W-3 (RP 18) 8,503
Tangible property, guidance regarding deduction and capitaliza-
tion of expenditures related to, corrections (Ann 7) 3,308;
(Ann 3) 4,271
Taxable medical devices; correction (Ann 23) 16,940
Tax conventions:
U.S.-Norway agreements:
Regarding offshore activities (Ann 16) 14,738
Regarding the sourcing of remuneration for government
services and social security payments (Ann 5) 3,306
Regarding fiscally transparent entities (Ann 14) 11,651
Technical Advice Memoranda (TAMs) (RP 2) 1,92
Transition relief for submitting Form 8850 as a result of the
American Taxpayer Relief Act (Notice 14) 13,712
Treasury inflation-protected securities issued at a premium, bond
premium carryforward (TD 9609) 12,655; (REG–140437–12)
12,676
Treatment of grantor of an option on a partnership interest
(REG–106918–08) 13,714
Truncated taxpayer identification numbers (REG–148873–09) 7,
494
Use of controlled corporations to avoid the application of section
304 (TD 9606) 11,586
SELF-EMPLOYMENT TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Public comment invited on recommendations for 2013-2014
Guidance Priority List (Notice 22) 15,904
Technical Advice Memoranda (TAMs) (RP 2) 1,92
2013–18 I.R.B.viiApril 29, 2013

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