403b audits

[Tom Poje]

A plan has deferral only, but also has loans, so employer involvement, so needs the 5500.

just received a letter from a firm that implied no audit is needed in this situation. (assume large plan, over 100 employees)

I didn't think this was true.

[Kevin C]

Any chance they are using transitional relief to treat pre 2009 individual annuity contracts or custodial accounts for terms as not being part of the plan? Or, the 80-120 rule?

http://www.dol.gov/ebsa/regs/fab2009-2.html

The audit requirement is discussed in the 3rd paragraph of the Background section.

[movedon]

I wouldn't presume that a loan feature makes the plan an ERISA plan. For instance, if the loan process is between the employee and the vendor, and the employer does nothing more than withhold payments from paychecks and remit to the vendor, I'd say no ERISA.

[mbozek]

I wouldn't presume that a loan feature makes the plan an ERISA plan. For instance, if the loan process is between the employee and the vendor, and the employer does nothing more than withhold payments from paychecks and remit to the vendor, I'd say no ERISA.

Under what circumstances would the employer be involved with plan loans other than to collect loan payments to remit to the provider since a 403b can only be funded by an annuity or mutual fund. If the loan is made available by the MF aren't the terms including interest rates set by the trustee of the fund? Loans under an annuity contract are made available by the insurance company.