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inactive 403(b) plan

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We have had a 403(b) plan that has been inactive for well over 10 years.  It is a hospital plan that was previously bought out and taken over by a new medical organization.  No new contributions going into the plan past 10 years, just withdrawals.  The plan has never had more than 100 participants and currently have around 50 accounts in it.

Since the plan data is easy to obtain, the new organization has chosen to file 5500s each year even though I do not believe they have been required to.

The deadline for a new 403(b) document is almost here (June 30th).  Even though the plan is frozen and allows no new participants, a new document is still required, is that correct?

Thank you

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Unless the plan’s administrator is confident that ERISA does not govern the plan (and that Internal Revenue Code § 6058 does not call for an information return), it seems filing Form 5500 reports makes sense.


If the plan’s sponsor wants the annuity contracts and custodial accounts to continue § 403(b) tax treatment, restating the plan (if its governing document does not yet meet all tax-treatment conditions) seems sensible.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania



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