403BWilder

The 403(b) regulations require 403(b) plan sponsors to provide an effective opportunity to eligible employees to make 403(b) deferrals to the plan. According to 1.403(b)-5(b)(2), this requirement is satisfied by providing a notice to the employees at least once a year that tells the employees that the 403(b) plan is available, and also tells them how to make or change the amount of their 403(b) deferral election. 1. What does this annual universal availability notice referenced in the regulations look like? Is there a published or sample form? 2. If there isn't a published or sample form, what other types of notices and documents satisfy the annual universal availability notice requirement? 3. When is the annual universal availability notice distributed? Does it have to be no later than 12 months after the last notice, or literally no less than once per plan year? (For example, is a notice provided in January 2018 followed by a notice provided in July 2019 okay?) 4. Are all eligible employees supposed to get the annual universal availability notice every year, regardless of whether they are actively deferring to the plan or have previously declined to defer? If yes, what if they're currently in the midst of a deferral suspension following a pre-7/1/2019 hardship distribution? Or, what if they've just exited a deferral suspension due to a pre-7/1/2019 hardship? 5. Do plan sponsors need to get employees's signatures or otherwise record the date that they sent the notices to eligible employees and the date the eligible employees received the notices in order to document that they have satisfied the universal availability requirement?

Hi! We have some 403(b) plans with loans and I don't understand how the loans are not coming from the plan assets? Don't the loans have to be made by the plan to the participant and be subject to the rules on maximum loan amount and repayment frequency and amortization etc etc so the loans aren't an assignment or alienation of the participant's benefit? I have been searching the threads on this site and someone on another thread said that loans that meet the requirements of 1.401(a)-13(d) would not be an assignment. But that regulation says the loan has to come from the plan? So if the 403(b) loan isn't coming from the plan assets then it isn't coming from the plan, right? And if it isn't coming from the plan then it doesn't follow the regulation to use the participant account as collateral for the loan, right? So how exactly are these loans ok? The plan provision providing for the loans must be limited to loans from the plan. A plan may not provide for the use of benefits accrued or to be accrued under the plan as security for a loan from a party other than the plan, regardless of whether these benefits are nonforfeitable within the meaning of section 411 and the regulations thereunder.

Hi! I have been searching the threads on this site because we have some plans with questions about 403(b) loans and I am confused by PTE 77-9? Where does it say loans from an annuity contract are ok? These are the transactions that PTE 77-9 lists (this was how it looked originally before it was amended a ton of times - it's not even numbered the same now because they changed it to PTE 84-24): (a) The receipt, directly or indirectly, by an insurance agent or broker or a pension consultant of a sales commission from an insurance company in connection with the purchase, with plan assets, of an insurance or annuity contract. (b) The receipt of a sales commission by a principal underwriter for an investment company registered under the Investment Company Act of 1940 (hereinafter referred to as an investment company) in connection with the purchase, with plan assets, of securities issued by an investment company. (c) The effecting by an insurance agent or broker, pension consultant or investment company principal underwriter of a transaction for the purchase, with plan assets, of an insurance or annuity contract or securities issued by an investment company. (d) The purchase, with plan assets, of an insurance or annuity contract from an insurance company. (e) The purchase, with plan assets, of an insurance or annuity contract from an insurance company which is a fiduciary or a service provider (or both) with respect to the plan solely by reason of the sponsorship of a master or prototype plan. (f) The purchase of securities issued by an investment company with plan assets from, or the sale of such securities to, an investment company or investment company principal underwriter, when such investment company or principal underwriter is a fiduciary or a service provider (or both) with respect to the plan solely by reason of the sponsorship of a master or prototype plan. So sales commissions are ok and buying annuities with plan assets is ok but which one of these makes loans from an annuity ok?