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Posted

I am wondering about the change to Code Section 403(B)(3) made by EGTRRA (and clarified by the recent Job Creation and Worker Assistance Act) which allows employers to make 403(B) contributions for up to five years after an employee's retirement. I am aware of a number of school districts that either have or would like to establish early retirement "severance" arrangements which may be problematic under TAM 199903032. It appears that the modification to 403(B)(3) would provide the employer with an alternative to the severance type of arrangement; however, I have seen little discussion of the 403(B)(3) change. What is the purpose behind the change and any thoughts as to the viablility of post-retirement 403(B) contributions instead of a severance arrangement?

  • 2 months later...
Guest Rob Patterson
Posted

Did you get any more info on this question? I'm looking at it myself right now.

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