As Clear as Mud?: The 403(b) Plan Termination Rules

For qualified plans, the plan termination regimen is well-established via an IRS determination letter process. But that cannot be said about terminations of 403(b) plans. Only recently have the final 403(b) regulations and IRS guidance clearly established that a 403(b) plan could be terminated at all.

But simply issuing rules and even guidance does not necessarily still the waters. In Market Beat, NTSA Communication Committee Chair Mike Webb points out that IRS guidance raises more questions than it answers. He addresses issues that can make plan terminations, as a practical matter, difficult or even impossible to complete.