403b Plans
A pastor for whom a church will be making monthly discretionary contributions, and who also does a lot of ministerial work for other churches, would like to start and participate in a 403(b) plan. In Tech Talk, Susan Diehl discusses the options that may be available.
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Sponsors of 403(b) plans evince a high level of awareness of fiduciary duties, the Plan Sponsor Council of America (PSCA) found in a recent study it conducted. It also found the changes to plan investments, as well as governance changes, were common.
In its study “Fiduciary Awareness in 403(b)...
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K-12 educators are better prepared for retirement if they work with a licensed financial professional, says a recent white paper. The researchers found that with advice, the 403(b) plan participants studied achieved higher retirement plan balances, made better decisions and had greater confidence...
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Once an employee in retires from an optional retirement plan (ORP), she or he is never allowed to participate in the system again. Tech Talk addresses whether this is mitigated by an employee reaching age 59½.
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The IRS has provided transition relief from the once-in-always-in (OIAI) condition for excluding part-time employees under Treas. Reg. §1.403(b)-5(b)(4)(iii)(B). The relief is contained in Notice 2018-95. It also has provided a fresh start opportunity for plans by applying the OIAI condition for...
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It’s said that if at first you don’t succeed, try again. And apparently, when it comes to at least one stable value fund suit, you try again. And again.
The persistent plaintiff here is one Darlene Dezelan, a participant of the Cedars-Sinai Medical Center 403(b) Retirement Plan, who initially (...
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The parties in a university 403(b) excessive fee suit have struck a deal.
The news – though specifics of the deal were not disclosed – was revealed in a docket entry in North Carolina federal court. That entry indicated that the parties had settled and that a stipulation of dismissal was due by...
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A client retires from a non-ERISA employer. He or she has a 403(b) and is under age 59½, and returns to teach a couple of classes part time. In Tech Talk, Susan Diehl addresses whether the retired employee would still be able to access funds, since the retiree is only working part-time and is under...
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The IRS on Nov. 28 updated the information it provides on its website concerning eligible adopting employers and reliance on letters regarding the IRS 403(b) Pre-Approved Plan Program.
Employers that can adopt a 403(b) plan — public schools, 501(c)(3) tax-exempt organizations, churches and certain...
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With only about two weeks left in the legislative calendar, the House of Representatives is expected to approve a revised tax and retirement savings package as early as today. But can the legislation be enacted in its current form?
House Ways and Means Committee Chairman Kevin Brady (R-TX)...
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A pastor wants to open a 403(b) for his church and participate in it, but can he do so if he receives a Form 1099 and not a Form W-2 for his services? In Tech Talk, Susan Diehl tells us.
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An employer offers a 403(b) non-ERISA plan to her employees. Its benefits administrators are aware of the need to prevent compliance violations such as borrowing more than $50,000 and taking distributions while still employed and under age 59½. But other than that, they are unsure what fiduciary...
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Two plaintiffs in a class action suit against third-party administrator Vantage Benefits and custodian Matrix Trust company have voluntarily dismissed without prejudice their lawsuit against the latter.
The two plaintiffs, who are Texas A&M University retirees, voluntarily dismissed their...
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MarketBeat discusses a blog post about best practices in which ERISA attorney Fred Reish explores retirement income projections as a way to better serve plan participants. And he cites the 403(b) market as among those such information can serve.
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Tech Talk addresses whether a 403(b) plan that is set up as a 403(b)(7) custodial account can offer a stable value fund in addition to annuities and custodial accounts it offers.
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There are a surprising number of “yes” answers to this question, but not necessarily for the reasons you might think.
The LIMRA Secure Retirement Institute recently followed up on a 2016 survey that found that more than half (55%) of plan sponsors said they would be “very” or “somewhat” likely to...
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The Department of Labor’s Employee Benefits Security Administration (EBSA), the IRS and the Pension Benefit Guaranty Corporation (PBGC) on Nov. 14 released advance copies of the Form 5500 Series forms to be used for 2018 reporting, as well as the related instructions.
EBSA reports that the 2018...
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The IRS has announced that it has granted tax relief to certain victims of wildfires in California. The IRS action includes relief from penalties on payroll and excise tax deposits due on or after Nov. 8, 2018, and before Nov. 23, 2018, which it says will be abated as long as the deposits are made...
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New research published by the National Tax-Deferred Savings Association (NTSA) confirms that there is a connection between the number of options – and advisors – available to employees in public education 403(b) plans and participation and contribution rates in those plans.
Those findings are...
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An employee rolls IRA funds into her 403b. If she retires at age 58 and withdraws from the account, would these funds be the 10% pre-age 59½ penalty? In Tech Talk, Susan Diehl tells us.
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