403(b) and 457(b) Plan Compliance Challenges: SECURE 2.0, Requirements, Limits, Plan Design and Administration

BARBRI

This CLE webinar will provide guidance to employee benefits counsel on key compliance challenges in the design and administration of 403(b) and 457(b) plans and methods to overcome them. The panel will discuss complex rules and pitfalls to avoid in plan design, key administrative challenges, the impact of SECURE 2.0, investments, the universal availability rule, excess contributions, hardship distributions, and methods to limit claims.

Description

Sections 403(b) and 457(b) plan compliance present significant challenges for employee benefits counsel and plan administrators. Sponsors of 403(b) and 457(b) plans must consider the impact of recent regulatory and litigation developments to ensure strict compliance to avoid potential claims.

Litigation against sponsors of 403(b) plans stemming from fiduciary duties, expenses, and exemptions is occurring with greater frequency over the last few years. The administration of 403(b) plans requires detailed knowledge of hardship distribution rules, the universal availability rule, and regulatory guidance to avoid compliance issues.

For 457(b) plans, employers must understand the complex rules relating to contributions and distributions, maintaining exempt status under ERISA, and the application of Section 409A and Section 4960 excise tax. Employee benefits counsel must have a complete understanding of these complex rules to properly advise plan sponsors and administrators in the design and implementation of 403(b) and 457(b) plans.

In addition, counsel must understand the impact of SECURE 2.0 as applied to 403(b) and 457(b) plans such as the elimination of the "First Day of the Month Rule," expansion of long-term part-time employee rules, and other key provisions.

Listen as our panel discusses key compliance challenges in the design and administration of 403(b) and 457(b) plans and offers an in-depth analysis of complex rules and methods to avoid compliance traps.

Outline

1. Overcoming compliance issues of 403(b) plans
2. Avoiding compliance traps in 457(b) plans
3. Section 4960 excise tax
4. Impact of SECURE 2.0
5. Key considerations for plan modifications in light of recent developments

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