TASBO 2008. The 403(b) Final Regulations; What You Need to Do and When!. Presenter: Ellie Lowder, MCRS, Consultant. Author: ASBO’s “403(b) Compliance Guide for Public Education Employers” (Rowman & Littlefield); “The Source” (NTSAA); “403(b) Plans” (Kaplan & Drysdale)
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
The 403(b) Final Regulations; What You Need to Do and When!
Ellie Lowder does not provide tax or legal advice, nor can anything in this presentation be used to avoid income taxes properly assessed by a US taxing authority.
>Employer’s must treat 403(b) “programs” as plans and must assume (but can delegate) compliance responsibilities
>state statute might require faster turn around time
>employee permission required?
>and, no provision for distribution of custodial accounts in the regulations
>governmental employers are exempt from the ERISA fiduciary standardsand other ERISA requirements
>the regulations impose compliance responsibilities only; not fiduciary responsibilities
>all exchanges that take (or took) place after 9/24/07 are limited to providers with which you will enter into an Information Sharing Agreement before 1/1/09
>would cause exchanges accounts to be treated as distributions
>new guidance does permit correction of “improper” exchanges if done by 6/30/09
>share with all providers in your plan, and,
>with your employees
>portion used have reliance (as long as terms are followed)
>for ongoing contributions, and,
>for exchanges (can have “exchange-only” providers)
>your product providers, or,
>a Third Party Plan Administrator?
>those that “normally” work less than 20 hours per week (can use 1000 per year standard under final regulations)
>working hours could greatly vary (and you may not know in advance)
>remember: most substitute teachers, other part timers won’t participate
>by opening it up, you avoid potential violations
>failure to adopt and follow the terms of your written plan (by 1/1/09 for most)
>ineligibility to sponsor a 403(b) plan
>planning matrix (what does to be done; who can help do it)
>information sharing agreements
>sample questions to ask service providers
>Service Provider Agreement
>they have tools and resources
>they have a vested interest in providing assistance
>most are committed to working in a “multiple provider” environment (history of 403(b))
>Prepared to monitor and coordinate loans in all of your plans?
>Prepared to receive and act upon all hardship withdrawal requests, and,
>Notify you for the suspension of voluntary salary reduction contributions to all plans
>Costs vs. benefit and service
>Knowledgeable/experienced in the non-ERISA 403(b) market?
>employees through debit to their 403(b) accounts?
>you – the employer, or,
>the final vendors chosen for your plan?