Ellie Lowder

I agree with JOH - many 403(b) plans are exempt from ERISA. Be sure to check that!

Governmental employers are not eligible to sponsor a 401(k) plan unless it was established before May, 1986,

It is a facts & circumstances issue - the IRS says that if you had planned the return to work, then you have not separated from service - in other words, if you and your employer knew you were returning, it does't qualify as a separation from service. So, the age 55 rule doesn't kick in unless you later actually later separate before age 59 1/2.

In the situation where the plan does not permit a COVID distribution, but the participant can take one and properly report it, can the participant take it from an account other than the elective deferral account?

And, if they also have a 403(b) plan, there is also a separate $57,000 415(c) limit for employer contributions - so, $57,000 for the 401(a) DC plan; another $57,000 for the 403(b) plan. And, as John says, the 457 nothing to do with any of them.

Yes, I know - but does it apply to employer contributions to 403(b) and 457(b) plans, or just 401(a)/401(k) plans?

Does it apply only to 401(a)/401(k) plans, or are 457(b) and 403(b) plans included?

FPGuy, she can defer from pay that would have been paid had she left or stayed, provided the amount is paid by the end of the year following the termination, or within 2 1/2 months, if later.

If you work with gov't plans, then, the TGPC will give you the deep dive into that marketplace, and equip you with that specialty market knowledge. To be fair, I am the co-author of "The Source: 403(b) & 457(b) plans" which forms the bulk of the curriculum for the designation; thus, may be biased.

If this is a plan sponsored by a church or a QCCO, the universal eligibility rules do not apply.

The universal availability requirements do not apply to churches (IRC 3121(3)(A) or QCCOs (IRC 3121(3)(B)).

Since they cannot be relied on in proposed form, we won't know effective date until we see them (according to Treasury/IRS on "June 40th" which might mean by July 10 or so?). Many have asked for later effective dates in view of substantial proposed changes and the need for employers & vendors to prepare. We have heard everything from 1/1/07 to 1/1/08.

The Form 5500 for any ERISA 403(b) plan requires very abbreviated reporting and no schedules whatsoever. Instructions to the Form 5500 specifically state that this applies to both 403(b)(1) annuities and 403(b)(7) custodial accounts. Only Part I and Part II, lines 1-5, and 8 are required to be completed.

This, of course, assumes that the employer is not one of those exempt from ERISA - that is, not a church/QCCO that did not affirmatively elect ERISA coverage, or not a governmental employer (such as public education).

Actually, Joel, I'm too busy marshalling forces to prepare written comments to the IRS in protest of much of the content of the proposed regulations (many of which have no statutory authority) to stop long enough to figure out what you are saying. My concern is to protect the interest of employers (especially those in non-ERISA plans) who would be heavily burdened with the new requirements, and the participants who would lose so much ownership and control if these regulations are finalized. As a pioneer in the 403(b) market, I do remember the intent of Congress in implementing 403(b) plans (in 1958 for non-profits and 1961 for public education employees) as a unique and special benefit for a group of people that need it. It appears that the IRS has foregotten that. The fight begins. Peace yourself.