403b Plans
Portability permits the rollover of eligible distributions from eligible retirement plans to any other eligible retirement plan by participants and spousal beneficiaries of those participants.
The following generally explains the rules and requirements for the virtually interchangeable rollovers...
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With concerns about the impact of the coronavirus and its impact on retirement plans increasing, we expect to shortly have legislation providing some much-needed relief.
The American Retirement Association has been actively advocating for relief for plan sponsors and participants impacted by the...
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After five days of intense negotiations, the Senate was set to vote on March 25 on an unprecedented $2 trillion stimulus bill covering every aspect of the U.S. economy, including retirement relief provisions supported by the American Retirement Association.
Earlier on March 25, the Senate...
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Tech Talk addresses staying in compliance with nondiscrimination rules when setting up a 403(b) plan for a small 501(c)3 organization.
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A bill has been introduced that would make it possible for 403(b) plans to invest in a broader array of forms of investment than they can currently.
The Public Service Retirement Fairness Act, introduced by Rep. Jimmy Panetta (D-CA), would allow 403(b)s to invest in collective investment trusts...
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The American Retirement Association (ARA) is pressing the IRS to extend the remedial amendment period for 403(b) plans by one year.
The ARA made the recommendation in a March 16 letter to Cathy Jones, Director of the IRS Office of Employee Plans, in which it comments on the 403(b) plan remedial...
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Remember, an exchange can only be accepted by vendors that have been included in the employer’s plan.
Thus, the employer may be asked to “sign off” on every exchange transaction form or provide a list of the approved vendors in the plan with agreement that exchanges will be accepted only by...
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The Setting Up Every Community for Retirement (SECURE Act) Act was enacted on Dec. 20, 2019 as part of the Further Consolidated Appropriations Act of 2019. Many of these provisions had been pending in Congress for some time, and the law brings about the biggest changes in retirement since the...
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Transamerica has announced the availability of a new, custom stable value separate account product developed specifically for 403(b) retirement plans. The Transamerica Capital Preservation Option is a group annuity contract issued by Transamerica Life Insurance Company.
The firm notes that,...
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The IRS has clearly indicated that no qualifying event is required for transfers or exchanges.
Thus, pre-59½ withdrawal restrictions do NOT apply to the values that are being transferred or exchanged under the final regulations. There have been reports of vendors refusing to honor requests for...
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How do your clients’ 403(b) plans fare in complying with the applicable requirements under the tax code? The IRS has updated its list of the top 10 considerations in gauging adherence to the rules.
In its 403(b) checklist, the IRS suggests that plan sponsors and administrators consider the...
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The SECURE ACT introduced a concept which was not known well beyond a handful of 403(b) practitioners, that is the “distribution” of 403(b) individual custodial accounts from 403(b) plans. The lack of understanding of what this actually means has even lead one commentator in a highly respected...
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Even though an employer is permitted to delay contributions to a 403(b) account until the following year, there are several reasons why it may not be in the best interest of the employer to do so.
For example, matching contributions are usually made to entice employees to participate in the plan...
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Plan design enhancements combined with positive savings behaviors and strong market conditions have helped push average retirement plan account balances.
Among the highlights in Fidelity Investments’ fourth quarter 2019 analysis of retirement savings trends is that the average balances of 403(...
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Add child care payments to the mix of items that policymakers are considering as a way to help individuals save for retirement in their DC plans. And 403(b) and 457(b) plan participants are among those whom the bill could affect.
Introduced Feb. 10 by Reps. Ann Wagner (R-MO) and Hakeem Jeffries...
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For years after 2001, EGTRRA amended IRC §403(b)(3) to include a provision that permits employers to make contributions for employees who have terminated their employment with the employer. The amount of each year’s post-employment contribution is based on the employee’s includible compensation...
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The Securities and Exchange Commission (SEC) is putting sales of 403(b) plans to teachers under its scrutiny. Where did this come from? And what does it mean?
In June 2019, the SEC announced two new initiatives that it said built on its ongoing efforts to protect retail investors: The Teachers...
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Employer contributions (contributions that are not salary reduction contributions), generally can be deposited any time up to the employer’s tax filing due date (including extensions). For tax-exempt employers, the deadline for employer contributions is 4½ months after the end of the employer’s tax...
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Non-ERISA 403(b) plans are exempt from the ERISA Section 408(b)(2) requirements. It’s important to distinguish the difference between an ERISA and non-ERISA plan.
A basic definition of ERISA vs. non-ERISA includes the employer’s involvement.
In an ERISA plan, an employer chooses the...
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A great session at the recent 2020 NTSA Summit featured speakers who addressed what plan sponsors are concerned about and how to better serve them.
Speakers included Scott Hayes from the advisor side of the industry; Mark Heisler, representing the TPAs; and Jack Towarnicky, coming from the...
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