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Final 401(a)(9) Regs


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Guest Madalyn Clark
Posted

Do Employer Sponsored 403(b) Plans need to be amended by the end of the 2003 plan year for the final 401(a)(9) Regs?

Posted

Not really. A 403(b) plan needs only to be operated in accordance with the final regs. However, it is a good idea to amend the plan to add the final regs.

mjb

Posted

Would you mind elaborating on your explanation--I was under the impression that the extension granted by 2003-10 might not apply to 403(b) annuities (since they seem to generally be treated under Reg. 1.401(a)(9)-5, and therefore would be treated like DC plans rather than DB plans). I'm new at this though, so I'd appreciate any help you could provide. Thanks!

Posted

According to the IRS audit guidelines, 403(b) annuity plans are not required to be administered in accordance with their terms. They are only required to be administered in accordance with the tax law and regs.

mjb

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