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403(b) Plans: A Look at Plan Components in 2016

Those who run, offer and serve 403(b) plans know that they are more than glorified savings accounts and can have a variety of features. A recent report looks at what a sampling of 403(b) plans offered in 2016.

In “403(b) Providers: Types of Retirement Income Solutions/Tools Offered, 2016,” Cerulli Associates included the following findings regarding features and services offered among the plans they studied. (For purposes of this report, offering a feature “in plan” refers to a solution or tool that available through the employer-sponsored 403(b) plan, and “out of plan” refers to a solution or tool only available if assets are rolled out of the plan.)

In-person planning sessions. More than three-quarters — 78% — offered such sessions both in and out of the plans; 11% only did so outside the plan; and another 11% did not offer them at all.

Online tools. Seventy percent offered them in and out of plan; the rest did so outside of the plan.

Managed accounts.
Fifty-six percent offered such accounts in and out of plan; 22% did so only out of plan; 11% offered them only in plan; and 11% did not make them available at all.

Annuities. Fifty-six percent offered such accounts in and out of plan; 22% offered them only in plan; and 22% did not make them available at all.

Income-focused mutual funds. Fifty percent offered such accounts in and out of plan; 40% did so only out of plan; and 10% did not make them available at all.

Retirement readiness measurements. Forty-four percent offered such accounts in and out of plan; one-third did so only out of plan; 11% offered them only in plan; and 11% did not make them available at all.