403(b) plans (BenefitsLink.com)Headlines re 403(b) plans, gathered by BenefitsLink.comSPARK Institute Wants Extension on 403(b) Regs Compliance- (Found July 5, 2008 ) Excerpt: "The SPARK Institute has filed a 13-page comment letter with the Internal Revenue Service (IRS) about the new 403(b) retirement savings plan regulations, asking for an extension of the effective date for compliance and guidance on the treatment of contracts and information sharing agreements (ISAs)." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type10/?RECORD_ID=40725 Guidance Overview Employee Plans News, Spring 2008 (PDF)- (Found July 5, 2008 ) 16 pages. Excerpt: "This edition includes articles such as Recent Guidance that May Require Interim or Discretionary Amendments; Determination Letters Coming Your Way; Steve Miller Discusses Governmental Plans Roundtable; New PPA Guidance; Exam's Risk Modeling Project; Economic Stimulus Payments; Written Plan Requirement for 403(b) Plans; 'Interesting' Pension Guidance Issued; and AFTAP Certifications." (Internal Revenue Service)http://www.irs.gov/pub/irs-tege/spr08.pdf Opinion 20th Century 403(b) Investing vs. 21st Century Practices (PDF)- (Found July 5, 2008 ) 1 page. The chart compares financial planninginvestment practices of individuals. (Steve Schullo via 403bwise.com)http://403bwise.com/pdf/20th_vs_21st_schullo.pdf SPARK Asks IRS for 403(b) Prototype Plan Program- (Found July 5, 2008 ) Excerpt: "The SPARK Institute has submitted a formal request to the IRS for a 'Pre-Approved 403(b) Prototype Plan Program,' according to SPARK Institute general counsel Larry Goldbrum. In a SPARK Institute press release, Goldbrum said the Institute outlined in its letter nine areas for consideration in developing a prototype document to meet its stated goals. According to Goldbrum, some of the key considerations include pre-approval of documents covering governmental 403(b) plans and...http://www.plansponsor.com/pi_type10/?RECORD_ID=40767 Guidance Overview Final IRS Regulations Make Major Changes in the 403(b) World (PDF)- (Found July 5, 2008 ) 20 pages. Excerpt: "For many years, IRS guidance on Internal Revenue Code section 403(b) plans has been a hodgepodge of regulations, exam guidelines, revenue rulings, and notices dating back to the 1960s. Several years ago, the IRS began to tackle the process of updating and consolidating most of this guidance into one unified set of regulations reflecting current law -- issued in proposed form in November 2004 -- and including guidance under the controlled group rules of section 414(c).' .http://www.groom.com/documents/FinalIRSRegulationsMakeMajorChangesinthe403bWorld.pdf Guidance Overview New 403(b) Regulations- (Found July 5, 2008 ) Excerpt: "The complicated 403(b) market needed updating in order to be more easily managed by both school districts and the IRS. Since 1964, the 403(b) rules had been updated but had not gone through a complete overhaul. In July 2007, the IRS finalized the first comprehensive 403(b) regulations in 43 years. These new rules require a written plan that will standardize each district's 403(b) providers. While providers and employers have until Jan. 1, 2009, to be fully compliant, the changes..http://www.financial-planning.com/asset/article/557771/new-rules-school.html TIAA-CREF Publishes 403(b) Guide for Plan Sponsors- (Found July 5, 2008 ) Excerpt: "TIAA-CREF has released a guide to new 403(b) regulations. A news release said the publication, '403(b) Plan Fundamentals - Your Guide to Compliance,' includes: At a Glance - An overview of new rules, plan sponsors' responsibilities, and a checklist for compliance; The Details - In-depth information about plan documents, non-discrimination requirements, loans and distributions, information sharing agreements, plan documents, contribution limits, Form 5500 and the Employee...http://www.plansponsor.com/pi_type10/?RECORD_ID=41247 Guidance Overview 403(b) Plans Frequently Asked Questions- (Found July 5, 2008 ) Excerpt: "Are distributions from 403(b) allowed after termination of employment as early as age 55 without additional penalty Taxable, but no early withdrawal penalty Yes. IRC Section 72(t) allows a distribution after termination of employment after age 55 without being subject to the 10% early withdrawal penalty. For this purpose, severance from employment may occur anytime during the calendar year in which the participant attains age 55." (National Association of Government Defined..http://www.nagdca.org/resources/403bFAQ.cfm Why Pricing of 403(b) Plan Services Can be Complex- (Found July 5, 2008 ) Excerpt: "If one is looking for reasons why pricing of services for 403(b) plans is so complex and confusing, a starting point might be the reality that service platforms for these defined contribution plans are actually comprised of two separate and distinct businesses that service providers attempt to combine into a single business model. This may work well for branding, but is problematic when services are bundled together for pricing purposes." (PLANSPONSOR.com; free registration..http://www.plansponsor.com/pi_type11/?RECORD_ID=41629 Guidance Overview Fiduciary Focus: Fleecing 403(b) Plan Participants, Part 8- (Found July 5, 2008 ) Excerpt: "How to Avoid Becoming an Ostrich about Fiduciary Duties All retirement plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) are governed by fiduciaries with distinct responsibilities (and corresponding liabilities) to plan participants (and their beneficiaries). The new IRS 403(b) regulations make clear that school districts aren't subject to ERISA. School administrators in some states, however, will find, post-Jan. 1, that they've become fiduciaries under.http://advisor.morningstar.com/articles/doc.asp?docId=15217 |