Headlines about "403(b) plans"
Gathered from the web by the editors at BenefitsLink.com.
EBSA Studying 403(b) Orphan Contract Problem; Link to Recorded Webcast
Excerpt: "A top Department of Labor (DoL) benefits regulator on Thursday revealed that the agency is studying ways to help 403(b) plan sponsors better deal with the difficult problem of getting an exact accounting of their orphan contracts." (PLANSPONSOR.com)
Let's Make It Cool to Save
Excerpt: "A coalition of consumer advocates, public policy groups and academics wants to attack our country's dependence on debt by creating a national campaign much like the one used to curb smoking." (Michelle Singletary in the Washington Post; free registration required)
PLANSPONSOR 2008 Ultimate Buyer's Guide: 403(b)
Excerpt: "Sponsors who decide to search for new plan vendors or a vendor that will take on the monitoring or recordkeeping function should look for providers that have 'best-in-class' investment choices . . . . Sponsors also should ask what services the providers offer and what fees they charge for the services. Finally, . . . sponsors should look for providers that are committed to the 403(b) business and the retirement readiness of participants." (PLANSPONSOR.com; free registration required)
EBSA Studying 403(b) Orphan Contract Problem
Excerpt: "A top Department of Labor (DoL) benefits regulator on Thursday revealed that the agency is studying ways to help 403(b) plan sponsors better deal with the difficult problem of getting an exact accounting of their orphan contracts." (PLANSPONSOR.com; free registration required)
Best Practices for 403(b) Plans Information Sharing – Minimum and Comprehensive Data Elements (PDF)
18 pages. Excerpt: "This document sets forth certain best practices with respect to the data elements for information sharing between 403(b) plan employers or employer representatives and vendors. The document also identifies a basic file convention layout. The document does not define best practices for: (1) the methods and frequency of data transmission, or (2) information sharing with respect to specific plan transactions or events (e.g., loans)." (The Spark Institute)
Sample 403(b) Plans' Information Sharing Agreement
13 pages. Excerpt: "The sample ISA provides: A set of sample contractual provisions, with [bracketed alternative or optional text] and italicized user notes, and A list of the data elements and information which SPARK Institute members have collectively agreed upon as minimally necessary for issuers and vendors to exchange." (The Spark Institute)
Is Your Plan Investment Menu Boxed In?
Excerpt: "If an investment committee for a participant-directed 403(b) is doing its job, the investment policy statement (IPS) serves as a road map for selecting and monitoring investments offered to plan participants." (PLANSPONSOR.com; free registration required)
The 403(b) Market
Excerpt: "[The] chart illustrates the distribution of investments in the 403(b) market as of December 31st of each year. The numbers represent billions of dollars invested." (Spectrem Group via bWise Guys, LLC)
[Guidance Overview] Section 403(b) Plans for Tax-Exempt Employers - the Collective Bargaining Dilemma
Excerpt: "The 403(b) Regulations repeal a nondiscrimination safe harbor which was made available under Notice 89-23 to provide temporary relief with respect to the imposition of the qualified retirement plan nondiscrimination rules on all employer contributions (other than elective deferrals) and after tax contributions to 403(b) plans. As a result of such repeal, 403(b) plans will now be fully subject to minimum coverage testing under §410(b) and employer contributions to them will be subject to testing under §401(a)(4), or in the case of employer matching contributions, §401(m)." (Tax Management Inc.)
[Guidance Overview] Final 403(b) Regulations Make 2008 a Key Planning Year
Excerpt: "This article focuses on a number of significant changes and trends reflected in the final §403(b) regulations and related guidance that impact plan design and implementation decisions that should be made in 2008." (Groom Law Group)
[Guidance Overview] 403(b) Plans Frequently Asked Questions
Excerpt: "Are distributions from 403(b) allowed after termination of employment as early as age 55 without additional penalty? Taxable, but no early withdrawal penalty? Yes. IRC Section 72(t) allows a distribution after termination of employment after age 55 without being subject to the 10% early withdrawal penalty. For this purpose, severance from employment may occur anytime during the calendar year in which the participant attains age 55." (National Association of Government Defined Contribution Administrators)
TIAA-CREF Publishes 403(b) Guide for Plan Sponsors
Excerpt: "TIAA-CREF has released a guide to new 403(b) regulations. A news release said the publication, '403(b) Plan Fundamentals - Your Guide to Compliance,' includes: At a Glance - An overview of new rules, plan sponsors' responsibilities, and a checklist for compliance; The Details - In-depth information about plan documents, non-discrimination requirements, loans and distributions, information sharing agreements, plan documents, contribution limits, Form 5500 and the Employee Retirement Income Security Act (ERISA), and fiduciary liability; and Resources – Frequently Asked Questions, a glossary, and reference materials.' (PLANSPONSOR.com; free registration required)
403(b) Investment Options - More Is Not Always Better
Excerpt: "When it comes to the size of a 403(b) plan's investment lineup, more isn't always better. That is particularly true now that 403(b) sponsors will be required to exercise the same due diligence about their investment options as their 401(k) cousins have always had to do, panelists said at an investment options discussion . . . ." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Questions on IRC 403(b) Tax-Sheltered Annuity Plans - Answers from Bob Architect
Excerpt: "Bob Architect, Senior Tax Law Specialist and the resident expert on 403(b) plans, receives many questions while presenting the latest 403(b) information to organizations. See the most frequently asked questions and Bob's answers [at the target page]." (Internal Revenue Service)
[Guidance Overview] 403(b) Plan Sponsors Subject to New Reporting and Audit Requirements
Excerpt: "If an employer fails to have a timely written plan (i.e., a document which contains basic provisions relating to eligibility, benefits, distribution availability and other limitations, and information relating to the annuity contracts or custodial agreements used by the 403(b) plan), any annuity contract or custodial agreement purchased by the employer will not qualify as a 403(b) plan, and contributions will be fully taxable." (McDermott Will & Emery)
[Guidance Overview] ERISA Exemption - David Levine and David Powell of Groom Law Group Answer Question Concerning the New IRS 403(b) Plan Regulations
Excerpt: "An adviser has some charter school clients that have been utilizing the DoL safe harbor in Labor Reg. § 2510.3-2(f) regarding being considered an Employee Retirement Income Security Act (ERISA)-governed plan. The adviser asks: One 501(c)(3) non-profit charter school has teachers that are employed by the charter school, but also eligible for the state pension plan and retirement system. This group believes that they should be considered as a public school, and therefore exempt from ERISA, when they establish their 403(b) plan. Should it?" (PLANSPONSOR.com; free registration required)
[Guidance Overview] Should Nonprofits Switch from a 403(b) Plan to a 401(k) Plan Because of the Final 403(b) Regulations?
Excerpt: "With the new requirement for a 403(b) plan document starting in 2009, some nonprofits may be considering switching to a 401(k). 403(b) plans may be sponsored by nonprofits, public schools, or ministers. States, local governments and ministers do not have the ability to sponsor 401(k) plan in addition to a 403(b). This article is, therefore, directed at nonprofits that are not an agent or instrumentality of a state or local government and not created for the benefit of a minister." (Fort William LLC)
'Architect' of IRS 403(b) Regs Says Limited Formal Guidance Coming
Excerpt: "Those waiting for additional guidance from the IRS dealing with 403(b) model plan language or information sharing agreements shouldn't hold their breath. So explained Robert Architect, of Tax Exempt and Government Entities (TEGE) at the Internal Revenue Service . . . ." (PLANSPONSOR.com; free registration required)
Sample Agreement for Information Sharing between 403(b) Plan Sponsor and Vendor (PDF)
Excerpt: "The SPARK Institute has prepared this sample ISA for the convenience of its members, and with the collective input of its members. The sample ISA is being made available to the public for consideration and comment in an effort to facilitate broad acceptance and use in the 403(b) plans community. Accordingly, the sample ISA is subject to change based on the comments received by The SPARK Institute." (The SPARK Institute)
SPARK Seeks Comments on 403(b) Information Sharing Agreement
Excerpt: "The SPARK Institute has released for public review and comment a draft sample Information Sharing Agreement (ISA) for 403(b) plan vendors and employers. [The ISA and an exposure draft, 'Best Practices for 403(b) Plans Information Sharing -- Minimum and Comprehensive Data Elements,' summarizing what information will be shared among affected parties are available for review at http://www.sparkinstitute.org/comments-and-materials.php.] " (PLANSPONSOR.com; free registration required)
[Guidance Overview] Distributing 403(b) Annuities, Part II: The 403(b) Plan Distributed Annuity
Excerpt: "[T]he new 403(b) regulations permit the distribution of a 'fully paid individual insurance annuity contract,' as a distribution option upon the termination of a 403(b) plan. We envision this as a particularly useful option in plans which are funded with individually owned annuity contracts, contracts over which the employer has little-if any-control. It gives the employer the ability to relinquish all of its obligations related to these pesky sorts of arrangements without having to actually force the distribution of funds from its terminating 403(b) plan. The regulations are silent, however, on just how these 'fully paid individual insurance annuity contracts' should be treated in the absence of an employer." (Baker & Daniels)
Draft of Best Practices for 403(b) Plans Information Sharing - Minimum and Comprehensive Data Elements (PDF)
17 pages. Excerpt: "This document sets forth certain best practices with respect to the data elements for information sharing between 403(b) plan employers or employer representatives and vendors. The document also identifies a basic file convention layout. The document does not define best practices for: (1) the methods and frequency of data transmission, or (2) information sharing with respect to specific plan transactions or events (e.g., loans). Best practices with respect to such matters are currently being evaluated by The SPARK Institute." (The SPARK Institute)
[Guidance Overview] Plan Documents Required for 403(b) Arrangements (PDF)
1 page. Excerpt: "Final IRS regulations require an employer offering a 403(b) arrangement to adopt a written plan by January 1, 2009. This requirement applies to both ERISA 403(b) plans and non-ERISA 403(b) programs." (Prudential Retirement)
The Florida Teachers' 'Model Retirement Plan' Deserves Praise
4 pages. Excerpt: "All Florida school districts must change their tax-deferred retirement plans by Jan. 1, 2009. That requirement created a window of opportunity to solve a long-standing problem and ensure that teachers get a far better deal on retirement funds than they are currently getting. . . . Now, for the first time, the collective purchasing power of the state's 350,000 school workers has been brought to bear to drive down fees and get educators a better deal." (Tallahassee.com)
[Guidance Overview] The §403(b) Written Plan Requirements – Can They be Satisfied with Existing Documents?
Excerpt: "The actual text of the regulations requires that the written plan contain all material terms and conditions for eligibility, benefits, applicable limitations, the contracts available under the plan, and the timing and form of benefit distributions. In addition, any optional plan features (e.g., hardships or loans) offered under the plan must be described in writing, as well as how responsibility for performing administrative functions is allocated between appropriate parties. The regulations also state that the written plan may incorporate other documents by reference, including the annuity contract or custodial account agreement." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Discontinued 403(b) Plan Contracts
Excerpt: "A 403(b) plan sponsor says there seems to be one question about vendor consolidation that hasn't been clearly addressed in general IRS publications - namely, what happens to contracts held by employees whose 403(b) providers were discontinued by the plan after 2005 and before 2008 (the regulations require plans to identify contracts available since 2005, those not identified in which assets are held can be considered taxable)? The sponsor asks: Is there any danger to our employees whose assets remain in contracts or custodial agreements with discontinued providers that their accounts will become taxable to them under the IRS' general statement that they may 'fail to meet the requirements of 403(b)?'" (PLANSPONSOR.com; free registration required)
[Guidance Overview] New 403(b) Regulations
Excerpt: "The complicated 403(b) market needed updating in order to be more easily managed by both school districts and the IRS. Since 1964, the 403(b) rules had been updated but had not gone through a complete overhaul. In July 2007, the IRS finalized the first comprehensive 403(b) regulations in 43 years. These new rules require a written plan that will standardize each district's 403(b) providers. While providers and employers have until Jan. 1, 2009, to be fully compliant, the changes have already begun." (Financial Planning)
[Guidance Overview] Final IRS Regulations Make Major Changes in the 403(b) World (PDF)
20 pages. Excerpt: "For many years, IRS guidance on Internal Revenue Code section 403(b) plans has been a hodgepodge of regulations, exam guidelines, revenue rulings, and notices dating back to the 1960s. Several years ago, the IRS began to tackle the process of updating and consolidating most of this guidance into one unified set of regulations reflecting current law -- issued in proposed form in November 2004 -- and including guidance under the controlled group rules of section 414(c).' (American Bar Association via Groom Law Group)
SPARK Asks IRS for 403(b) Prototype Plan Program
Excerpt: "The SPARK Institute has submitted a formal request to the IRS for a 'Pre-Approved 403(b) Prototype Plan Program,' according to SPARK Institute general counsel Larry Goldbrum. In a SPARK Institute press release, Goldbrum said the Institute outlined in its letter nine areas for consideration in developing a prototype document to meet its stated goals. According to Goldbrum, some of the key considerations include pre-approval of documents covering governmental 403(b) plans and church 403(b)(9) plans." (PLANSPONSOR.com; free registration required)
[Opinion] 20th Century 403(b) Investing vs. 21st Century Practices (PDF)
1 page. The chart compares financial planning/investment practices of individuals. (Steve Schullo via 403bwise.com)
[Guidance Overview] Employee Plans News, Spring 2008 (PDF)
16 pages. Excerpt: "This edition includes articles such as Recent Guidance that May Require Interim or Discretionary Amendments; Determination Letters Coming Your Way; Steve Miller Discusses Governmental Plans Roundtable; New PPA Guidance; Exam's Risk Modeling Project; Economic Stimulus Payments; Written Plan Requirement for 403(b) Plans; 'Interesting' Pension Guidance Issued; and AFTAP Certifications." (Internal Revenue Service)
SPARK Institute Wants Extension on 403(b) Regs Compliance
Excerpt: "The SPARK Institute has filed a 13-page comment letter with the Internal Revenue Service (IRS) about the new 403(b) retirement savings plan regulations, asking for an extension of the effective date for compliance and guidance on the treatment of contracts and information sharing agreements (ISAs)." (PLANSPONSOR.com; free registration required)
[Guidance Overview] 403(b) Plan Document News
Excerpt: "The final 403(b) regulations require that there be a written plan document in place before 2009." (McKay Hochman Co., Inc.)
[Guidance Overview] 403(b) Final Regulations – Plan and Contract Terms
Excerpt: "Final 403(b) regulations issued by the Internal Revenue Service require that all 403(b) programs have in place a written plan document and specify what must be included in the plan document. The regulations do allow for a plan document that is a compilation of vendor contracts and other plan communications as long as the result includes all the terms required by the IRS." (PLANSPONSOR.com; free registration required)
[Guidance Overview] A Big Question on 403(b)s Answered by Groom Law Group
Excerpt: "An adviser has some charter school clients that have been utilizing the DoL safe harbor in Labor Reg. § 2510.3-2(f). The adviser asks: If the point of the final 403(b) regulations is to have employers exercise more oversight/control of these plans, how far can they go in order to do that without stepping outside of the DoL safe harbor and becoming an ERISA-governed plan?" (PLANSPONSOR.com; free registration required)
[Guidance Overview] 'Distributing' 403(b) Annuities - New 403(b) Regulations Raise More Questions Than Answers
Excerpt: "The IRS's decision to permit the termination of 403(b) plans, and the distribution of its assets, raises a new issue which vendors, plans and plan participants have never had to deal with in the past: can you distribute an annuity upon 403(b) plan termination, how do you do it, and how is such a distribution treated?" (Baker & Daniels LLP)
[Guidance Overview] IRS Guidance on Automatic Enrollment Plan Designs (PDF)
Excerpt: "These developments affect sponsors of 401(k) plans, 403(b) arrangements, and governmental section 457(b) plans." (Prudential Retirement)
[Guidance Overview] Securities Laws and 403(b) Plans - Prospectus Delivery, Free Transferability, Rule 22c-2, and Other Things
Excerpt: "One of the most striking differences between 403(b) plans and 401(k) plans is the way in which the Securities Act of 1933 and the Security Exchange Act of 1934 apply to them. Though the new 403(b) regulations attempt to make 403(b) plans look and act almost like 401(k) plans, the application of securities laws will make that objective difficult – if not impossible – to achieve without wholesale revision of the securities laws." (Baker & Daniels LLP)
Securities Laws and 403(b) Plans
Excerpt: "One of the most striking differences between 403(b) plans and 401(k) plans is the way in which the Securities Act of 1933 and the Security Exchange Act of 1934 apply to them. Though the new 403(b) regulations attempt to make 403(b) plans look and act almost like 401(k) plans, the application of securities laws will make that objective difficult – if not impossible – to achieve without wholesale revision of the securities laws." (Baker & Daniels LLP)
Assisting School District Employees With Gaining Direct Access to No-Load, Low-Expense 403(b) Plan Accounts (PDF)
8 pages. Excerpt: "[I]n this article, I will describe four potential legal actions and one potential nonlegal action that attorneys may recommend in an effort to assist school district employees with gaining direct access to no-load, low-expense 403(b) plan accounts." (Michael B. Engdahl, PIABA Bar Journal, via 403bwise.com)
[Guidance Overview] What Do Final IRS Regulations Mean for 403(b) Plans in Higher Education? (PDF)
4 pages. Excerpt: "Note that there are other new 403(b) rules that could affect public and private colleges and universities that are outside of the scope of this article. For example, the exceptions to the requirement for 'universal availability' of pre-tax deferrals no longer include visiting professors." (Buck Consultants)
[Guidance Overview] What Do Final IRS Regulations Mean for 403(b) Plans in Health Care Organizations? (PDF)
4 pages. Excerpt: "Regulations issued by the IRS on July 26, 2007 finally filled a regulatory vacuum for sponsors of 403(b) plans. This issue of InsightOut focuses on three important issues affecting plans for health care organizations, two of which apply to all 403(b) plans and one (nondiscrimination testing) that applies only to plans subject to ERISA: Plan documents and administration; Nondiscrimination testing for employer contributions; and, In-service distributions." (Buck Consultants)
Executive Summaries of Benefits Quarterly, 1st Quarter, 2008, Articles on Retirement and Health Plans
The titles are: Conceptualizing the Defined Benefit Pension Promise - Implications from a Survey of Expert Opinion; The Consequences of Favoring Short-Term Budget Goals Over Long-Term Retirement Policy; Tax-Sheltered Annuities Under Code Section 403(B) New Regulations and New Obligations; Living With GASB 45: How To Manage Liabilities Associated with Retiree Medical Benefits; More Preventive Care, and Fewer Emergency Room Visits and Prescription Drugs -- Health Care Utilization in a Consumer-Driven Health Plan. (International Society of Certified Employee Benefit Specialists)
[Guidance Overview] IRS Issues Model 403(b) Plan and Guidance on Complying with Final 403(b) Regulations
Excerpt: "IRS issued model plan language for use by public schools in adopting a written plan, or in amending an existing plan, to comply with the final regulations under IRC § 403(b). The adoption by a public school employer of the model language on a word-for-word basis, or using language that is substantially similar in all material respects, will be treated as meeting the requirements of IRC § 403(b). IRS Revenue Procedure 2007-71." (Deloitte via BenefitsLink.com)
[Guidance Overview] 403(b) Final Regulations – Transfers and Exchanges
Excerpt: "The new 403(b) regulations concerning plan transfers and contract exchanges both expand permissible transactions for participants and place controls on conditions of the transactions to ensure compliance with limitations and distribution restrictions. Participants are no longer on their own to decide if they can make a transfer or exchange. These provisions of the new regulations were generally effective September 24, 2007." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of Proposed Labor Regs: 7-Day Safe Harbor for Participant Contributions for Plans Having Fewer Than 100 Participants (PDF)
Excerpt: "[T]he Department believes that adoption of a '7-business day' safe harbor rule would present little, if any, additional risk to plan participants and beneficiaries. In this regard, the Department believes that most employers with small plans that are taking longer than 7 business days to deposit participant contributions will expedite the depositing of those contributions to take advantage of the safe harbor. The Department also believes that where participant contributions are being made by employers with small plans within a period shorter than 7 business days, few employers with small plans will incur the costs attendant to modifying their payroll system in order to hold such contributions for a few additional days." (Employee Benefits Security Administration, U.S. Department of Labor)
Florida Associations Unveil Model 403(b) Plan
Excerpt: "A coalition of Florida's K-12 education associations announced the development of a 403(b) Model Plan for Florida educators in a February 25 nationwide teleconference." (PLANSPONSOR.com; free registration required)
403(b) Sponsors Want Help in Complying with New Regs
Excerpt: "A new study from the Spectrem Group found 77% of 403(b) plan sponsors say it is very or somewhat important to get outside advice about what actions they must take to comply with new Pension Protection Act (PPA) and 403(b) regulations." (PLANSPONSOR.com; free registration required)
[Guidance Overview] The 403(b) Plan Document
Excerpt: "We have compiled the top ten questions we have received with respect to §403(b) and the new regulations. [The target page provides] the first in this series of ten FAQs." (McKay Hochman Co., Inc.)
Sovereign Immunity for School Districts 403(b) Fiduciary Choices?
Excerpt: "Many professionals have been advising certain governmental employers for a while that just because ERISA doesn't apply to their 403(b) plans, state trust and fiduciary laws do. The IRS's new 403(b) regulations have exacerbated that exposure to state law liability by now requiring plan documents be maintained, that the employer be actively involved in approving vendors, and that the employer make other determinations under their plan." (Benefits Biz Blog published by Baker & Daniels LLP)
Potential Trap: Privacy Issues and the New 403(b) Rules
Excerpt: "Privacy doesn't appear to be an issue for ERISA plans, because of ERISA's likely preemption of state privacy rules . . . . But what of that large block of individually owned 403(b) contracts over which the employer has no authority, and the plan participant is unwilling to grant consent? It can be a real wrench thrown in the gearhouse of consolidated administration." (Baker & Daniels LLP's Benefits Biz Blog)
In Texas, Teachers Find Costlier Choices in Saving for Retirement
Excerpt: "Under a law that took effect Jan. 1, public school employees in Texas can make new investments only in products that have been registered with the Teacher Retirement System of Texas. For the state's 936,000 public school employees, the problem isn't a lack of choice . . . .The problem is cost. Teachers and other school employees will have to look closely to find low-cost mutual funds . . . ." (Statesman.com)
[Guidance Overview] 403(b) Interests Excluded from Bankruptcy Turnover
Excerpt: "The U.S. Bankruptcy Court for the Southern District of Ohio has ruled the interests of seven debtors in Employee Retirement Income Security Act (ERISA) Section 403(b) plans did not have to be turned over to the Chapter 7 trustees of the debtors' estates.' (PLANSPONSOR.com; free registration required)
Target-Date and Balanced Funds Are Main Default Options for Plans, But Which One Is Better?
Excerpt: "[During] the 48-year period from 1960 to 2007 . . . [t]he annualized return of the 60/40 balanced fund was 9.26% versus 9.59% for the target-date fund. " (Financial Planning)
West Virginia Teachers Say They Can't Retire on Balances in Individual Account Plan
Excerpt: "Perry is among the more 19,000 teachers and school officials who rely on 401(k)-style accounts for their retirement. . . . [West Virginia state] officials estimate that the average such account contains less than $34,000. For the 1,100 account holders age 60 or older, only 23 have more than $100,000." (The Times West Virginian)
Fewer 401(k) Savers Would Be Facing Inadequate Nest Eggs if Told Necessary Contribution Rate (PDF)
4 pages. Excerpt: "What participants need is specific numbers on the percentage of their salary they need to save now to achieve their goal -- depending on when they start saving and how well they invest their money. For this purpose, we would like to discuss the concept of retirement sufficiency, which is defined as the nest egg that one needs to accumulate in order to maintain his or her pre-retirement standard of living after retirement." (James E. Turpin, MSPA, and Jane White; reprinted with permission from the ASPPA Journal)
New Regulations Spurring 403(b) Plan Officials to Trim Number of Service Providers Used (PDF)
Excerpt: "Executives overseeing 403(b) plans are switching to single bundled providers in anticipation of new IRS regulations set to go into effect on Jan. 1, 2009. 403(b) plans, defined contribution plans for school districts and hospitals, typically hire a slew of providers. Each offers a combination of investment, record-keeping, administration and education services." (Pensions & Investments via 403bwise)
[Guidance Overview] Overview: IRS Issues Guidance for 403(b) Plan Sponsors: Model Language for Public Schools
Excerpt: "One of the most significant provisions of the regulations is the requirement that sponsoring organizations maintain written plan documents for their 403(b) plans. Another important requirement is that 403(b) plans comply in both form and operation with the requirements of the rregulations." (von Briesen & Roper, s.c.)
Focus on Employee Benefits, January 9, 2008 (PDF)
3 pages. This edition covers: 213 Expenses; ISO/ESPP Information Reporting; 401(k)/403(b) Contribution Limitations; and, Payroll Tax & Fringe Benefit Pointers -- FICA Tax Triggered upon 'Retirement." (Miller & Chevalier Chartered)
Overview: 403(b) Universal Availability
Excerpt: "Universal availability has always provided 403(b) plans with an advantage over 401(k) plans. Specifically, there is no ADP testing on a 403(b) plan because everyone is universally eligible to defer. Prior to the final regulations, Notice 89-23 had spelled-out a list of those who could be excluded. The final regulations incorporate and change the rules of this notice." (McKay Hochman Co., Inc.)
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