Breaking News

IRS Publishes Sample 403(b) Prototype Document Language

Posted by PLANSPONSOR.com, which is owned and operated by Asset International, Inc., headquartered at 1055 Washington Blvd, Stamford, CT 06901.

CCC has learned today (4/15/2009) that the IRS has released draft "Section 403(b) Prototype Plans Sample Plan Provisions." Public comments about the prototype proposal are requested by 6/1/2009, following which the IRS plans to publish the final version of Revenue Procedure 2009-34. After the final revenue procedure is published, CCC plans to draft Version 1.2 of its 403(b) Plan Document template and submit it to the IRS for review. Once the IRS approves the CCC submission, CCC clients will be advised to adopt the IRS approved Plan Document, since they can then rely on compliance of their Plan Documents with respect to form. Of course, the 403(b) Plan must also be operated in compliance with the terms of the Plan Document.

Click Here to review the IRS Employee Plans News Announcement.
Click Here to read the PLANSPONSOR.com announcement.
Click Here to review the draft prototype document language, described as Draft Revenue Procedure 2009-34.
Click Here to review the IRS Request for Comments.

IRS Postpones Written Plan Requirement Until 12/31/2009

Posted by NTSAA, 2388 Schuetz Road, Suite A-60, St. Louis, Missouri 63146

CCC has learned today (12/11/2008) that the IRS and Treasury Department have released Notice 2009-3, which provides relief during 2009 for sponsors of 403(b) plans with respect to the requirement to have a written 403(b) plan in place by January 1, 2009.

Learn More about what this means for your 403(b) Plan. Click Here to review this extremely important two-page notice.

Model Language Published

Revenue Procedure 2007-71, which was published by the Treasury Department on November 27, 2007, is now available online. This Revenue Procedure provides model language that may be used to generate written plans (Plan Documents), required to be in place for 403(b) plans by December 31, 2008. Moreover, guidance is provided for other requirements imposed by the Final 403(b) Regulations. CCC will provide draft Plan Documents for all Full and Transitional Service client Employers for adoption by March 31, 2008.

403(b) Final Regulations Released

403(b) Final Regulations, which were released by the Treasury Department on July 23, 2007, is also available online. Under these new regulations, public school districts, education service districts, and community colleges will be held responsible for numerous 403(b) Program administrative functions formerly limited to 401(k) Plans in the for-profit sector. These new responsibilities must be taken very seriously, for otherwise the 403(b) Program could lose its tax-advantaged status. Click here to review Employer options in preparing for the new 403(b) Regulations. To protect CCC intellectual property, this information is protected and requires User ID and Password for access. Contact Us and request access to this section of the website.

Impact of Final Regulations

A two-page summary provides details on the most critical impacts the 403(b) Final Regulations will have on Employers. Alternatives for meeting the new requirements are provided and compared.

Strengthening of Rev. Rul. 90-24 Effective 09-25-2007

Beginning September 25, 2007, in-service under age 59 1/2 transfers from a 403(b) account with one Vendor to a 403(b) account of a second vendor will only be possible if the Employer and the second Vendor have entered into an Information Sharing Agreement (ISA). Follow the link above to Impact of Final Regulations for more information.

Wall Street Journal Article (5/4/2010)

Workers Struggle to Deal With Changes to 403(b) Plans provides the best overview we've seen of the challenges that have faced 403(b) Plan sponsoring employers since the final 403(b) Regulations became fully effective on 1/1/2009.

RMD Moratorium for 2009

This CCH Tax Briefing provides an analysis of the Worker, Retiree, and Employer Recovery Act of 2008, which includes a one-year moratorium on minimum required distributions (MRD) for 2009. Participants who have reached, or will reach, age 70-1/2 by December 31, 2009, are not required by Federal law to take minimum required distributions from their 403(b) accounts applicable to calendar year 2009.

MarketWatch Article (11/19/2008)

This article provides an up-to-the-minute analysis of what participants in 403(b) Plans might expect when 1/1/2009 rolls around. the title and sub-title are: Happy New Year? Not for some: 403(b) Plans will have fewer investment options, more restrictions in 2009.

Education Week Article (10/31/2008)

This article (subscription required) gives several interesting perspectives about how 403(b) Plan Sponsors are dealing with new responsibilities imposed on them by the Final 403(b) Regulations

EGTRRA 2001 - Roth 403(b) Accounts.

Roth 403(b) accounts became available on January 1, 2006. Check out Section 617 in the Economic Growth and Tax Relief Reconciliation Act of 2001 for the details.

Roth 401(k) Temporary Regulations

The Treasury Department issued temporary regulations for Roth 401(k) arrangements on March 2, 2005. It is widely believed that Roth 403(b) arrangements should follow Roth 401(k) guidance until Roth 403(b) guidance is provided.

Groom Law Group Comments on Roth 401(k) and 403(b)

Pertinent observations about Roth 401(k) accounts from Groom Law Group in Washington, DC. Most of these observations will be applicable to public school district, ESD, and community college Roth 403(b) accounts, the primary exception being that no ADP nondiscrimination testing is required.

457 Final Regulations

Full text of the Final Regulations on Section 457.

Contact CCC

Carruth Compliance Consulting, Inc. (CCC) would be happy to hear from you. Please contact us if you have any questions about the services we provide, about CCC consultant-client relationships, or about the content of this website.