403(b) Document Requirement Update?

[Guest ajames]

Last I heard, there has still been no final word on the document requirement for 403(b) plans. Has anyone heard anything? Are they leaning one way or another? Are they considering only requiring documents for 403(b) plans with employer contributions?

Thanks.

ajames

[MWeddell]

For 403(b) plans that are subject to ERISA, plan documents have been and still are required.

The IRS does not currently require 403(b) plan documents, but it has proposed to do so. Word is that they are keeping this requirement. The regulations are scheduled to be finalized effective January 1, 2007, although one guesses that they won't require that a written plan document be executed before then.

[Guest ajames]

For 403(b) plans that are subject to ERISA, plan documents have been and still are required.

The IRS does not currently require 403(b) plan documents, but it has proposed to do so. Word is that they are keeping this requirement. The regulations are scheduled to be finalized effective January 1, 2007, although one guesses that they won't require that a written plan document be executed before then.

Yeah, that document requirement is going to cause some compelling issues with K-12 403(b) deferral only plans.

[joel]

For 403(b) plans that are subject to ERISA, plan documents have been and still are required.

The IRS does not currently require 403(b) plan documents, but it has proposed to do so. Word is that they are keeping this requirement. The regulations are scheduled to be finalized effective January 1, 2007, although one guesses that they won't require that a written plan document be executed before then.

Yeah, that document requirement is going to cause some compelling issues with K-12 403(b) deferral only plans.

The proposed regs are effective for years beginning after 12-31-06---- the regs require the establishment of a 'plan document'----therefore, the 'plan document' need not have an effective date prior to January 01, 2007.

I would like to hear from anyone that knows of a salary reduction only plan that is currently operating under a written plan document pursuant to the proposed regs.

[Guest AEA]

I have several.

[GBurns]

Joel

I have seen many plans which did not require a written document, have one. It seems that it was a decision to either be prepared just in case, or just because it seemed prudent to have one so that there less chance of misunderstandings.