TRA 86 -- 403(b) converted to 403(a)

[Guest mfchristopher]

A client with a new HR administrator is trying to figure out the history of the company's 403(a) plan. There are records indicating that it used to be a 403(b) plan but was restated as a 403(a) plan in 89. That is before my time, was there some sort of transition relief that made that possible back then? There are other documents that indicate the 403(b) plan was considered terminated, my guess is nothing was documented consistently. Thanks

[mbozek]

A 403(a) plan is a qualified plan funded by annuity contracts and the IRS will issue a favorable determination letter. Did the cleint recieve such a letter? 403(b) annuities are only available to employees of organizations exempt from tax under IRC 501©(3) or public schools. Is this client such an entity? While a 403(b) plan can be terminated, the annuities are not cashed out. Sounds like your client needs to retain tax counsel to figure out what happened.