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The final 403(b) Regulations issued by the IRS on July 26, 2007 are the first 403(b) regulations in over 40 years!
All 403(b) plans, whether they are covered by ERISA or not, are affected and employers are now responsible for their plan.
- Generally, plans must comply by January 1, 2009
- Written plan document required for all plans
- Written description of all available investment options required
- Annual notice to participants on rights to participate and method(s) for making or changing elections
- Stricter exchange and transfer rules
- Changed and clarified universal availability rules
- Clarified Controlled Group rules
- Timely deposit of employee contributions
- Plan terminations allowed
- Expanded Form 5500 reporting
- Independent accountant plan audit requirements
- Review vendor relationships, active and inactive
- Analyze vendor contracts / agreements, employee communications, costs and investment offerings
- Assist in the determination of vendor(s) that will be retained January 1, 2009
- Assess whether your plan is or should be an ERISA or a Non-ERISA plan
- Prepare or review plan document and Information Sharing Agreements after vendor determinations / issues are resolved
- Coordinate and/or compose employee communications for “new plan”
- Identify and correct compliance errors, if appropriate
- Establish or streamline administrative processes and procedures
- Evaluate reasonableness of plan costs
- Select and monitor vendors and investment alternatives
- Document decisions reached
- Gather necessary information for an independent accountant audit
- Prepare or review Form 5500 Annual Return / Report of Employee Benefit Plan
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