Subscribe Now!
Free Daily News, Jobs, Webcasts, Discussions
Display and Distribute
Your Job Openings
COVID-19 News
COVID-19 Webcasts

Featured Jobs

ESOP Administrator -- Sign-on bonus!

Blue Ridge ESOP Associates
(Telecommute)

Blue Ridge ESOP Associates logo

Retirement Plan Administrator

Carpenter Morse Group
(Telecommute / Longwood FL)

Carpenter Morse Group logo

Retirement Plan Consultant

Definiti
(Telecommute / Dallas TX / University Place WA / The Woodlands TX)

Definiti logo

Client Manager

CMC Pension Professionals
(Telecommute / CA)

CMC Pension Professionals logo

Pensions Plan Administrator

Quantech Pensions LLC
(Anaheim CA)

DC/DB Retirement Plan Administrator

Steidle Pension Solutions
(Telecommute)

Steidle Pension Solutions logo

Experienced DC Administrator/ Reviewer

MGKS
(Telecommute / Phoenix AZ)

MGKS logo

Document Specialist

Definiti
(Telecommute / University Place WA / The Woodlands TX / Erie PA / Dallas TX / FL)

Definiti logo

401(k) Plan Administrator -- Sign-on bonus!

Blue Ridge ESOP Associates
(Telecommute)

Blue Ridge ESOP Associates logo

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

View Coronavirus (COVID-19) News and Resources

<< Older News  |  January 24, 2021

News

All News > 403(b) Plans and Annuities

Get this news and more in our free daily email newsletters.
A Close Look at ERISA 403(b) Plans, 2017 (PDF)
Investment Company Institute [ICI] Link to more items from this source
Jan. 21, 2021

68 pages. "ERISA 403(b) plan assets account for more than half of estimated total 403(b) plan assets. This report analyzes 403(b) plans covered by ERISA that also filed Form 5500 Schedule H ... About half of ERISA 403(b) plan participants are in hospital plans, which held 37 percent of ERISA 403(b) plan assets in plan year 2017. Another 23 percent of ERISA 403(b) plan participants were in educational services, holding nearly half (46 percent) of ERISA 403(b) plan assets.... Among large ERISA 403(b) plans with employer contributions in 2017, 26 percent had automatic employer contributions, 58 percent had simple matches, and 8 percent had both of these features.... Overall, 54 percent of large ERISA 403(b) plans had participant loans outstanding, and about three-quarters of participants were in those plans in 2017."

Tags: 403(b) Plans and Annuities  •  Retirement Plan Design

Editor's Pick Quick Guide to 403(b) Plan Amendments for Hardship Withdrawals
Voya Link to more items from this source
[Guidance Overview]
Jan. 12, 2021

"A 403(b) plan of either a public school or 501(c)(3) organization will need to adopt a plan amendment by the end of 2021 if the 403(b) plan allows hardship withdrawals. The [SECURE Act] ... provided additional opportunities for a participant to access their retirement account while employed. The [CARES Act] permitted 403(b) plans to offer a coronavirus-related distribution (CRD) and loan relief to 'qualified individuals.' All 403(b) plans of public schools must adopt the SECURE and CARES amendments by the end of 2024 ... All plans for 501(c)(3) organizations with 403(b) plans will have until the end of the 2022 to adopt SECURE and CARES amendments[.]"

Tags: 403(b) Plans and Annuities  •  CARES Act  •  SECURE Act

IRS Issues Final Guidance for Retirement Plan Loan Offset Rollovers
EisnerAmper Link to more items from this source
Dec. 24, 2020

"Consistent with the TCJA provision and the proposed regulations, the final regulations extend the period allowed for a qualified plan loan offset amount received by a participant to be contributed to an eligible retirement plan or an IRA as a rollover contribution from the normal 60 days period to the due date, including extensions, for filing the individual's federal income tax return for the tax year in which the loan offset occurs."

Tags: 401(k) Plans  •  403(b) Plans and Annuities  •  Retirement Plan Administration

Terminating Custodial 403(b) Plans Get Distribution Relief
Ascensus Link to more items from this source
[Guidance Overview]
Dec. 16, 2020

"Revenue Ruling 2020-23 [addresses] how employers may terminate 403(b) plans that contain custodial accounts. This guidance gives plan administrators direction on how they can distribute plan assets to participants in order to satisfy plan termination requirements. The revenue ruling also gives the option for plan participants to preserve their accounts -- as 403(b) accounts -- following a plan termination, or to roll them over to an eligible retirement plan."

Tags: 403(b) Plans and Annuities

IRS Provides SECURE Act Guidance for 401(k) and 403(b) Plans
RSM US Link to more items from this source
Dec. 14, 2020

"Employers that use the 3% non-elective approach to safe harbor plan design, no longer have to issue traditional safe harbor notices. Nonetheless, the best advice is issue a notice reserving the right to reduce or suspend safe harbor non-elective contributions during the year.... [T]he due date to issue such a notice for 2021 is Jan 31, 2021."

Tags: 401(k) Plans  •  403(b) Plans and Annuities  •  Retirement Plan Administration

Impact of COVID-19 and Economic Conditions on 403(b) Plans (PDF)
Plan Sponsor Council of America [PSCA] Link to more items from this source
Dec. 3, 2020

"Three-fourths of plans indicated they have not noted an increase in plan loan activity since the beginning of COVID-19.... 35.0 percent of hospitals and healthcare organizations noted an increase as did nearly 30 percent of higher education institutions.... More than 80 percent of organizations (83.6 percent) are not planning on any changes to plan contributions this year. However, nearly thirty percent of higher education institutions either have, or will by year-end, reduce or suspend contributions to their 403(b) plans."

Tags: 403(b) Plans and Annuities  •  Coronavirus (COVID-19)

December 31 Sunset of Safe Harbor Correction Method for Certain Elective Deferral Failures
Verrill Dana LLP Link to more items from this source
[Guidance Overview]
Dec. 2, 2020

"A special IRS-approved correction method available for elective deferral failures in 401(k) and 403(b) plans with automatic contribution features ... will not be available to correct elective deferral failures that begin after [December 31]. It remains available, however, for a limited time to correct elective deferral failures that begin on or before that date. The loss of this favorable correction method going forward serves as a good reminder to plan sponsors to confirm that their plans, in operation, are correctly implementing employee elective deferrals."

Tags: 401(k) Plans  •  403(b) Plans and Annuities  •  Retirement Plan Administration

New 403(b) Survey Finds Signs of Strength, Concern
American Retirement Association [ARA] Link to more items from this source
Dec. 1, 2020

"While the vast majority of organizations are not planning on changing their employer contribution levels this year, nearly a third of higher education institutions say they either have, or will by year-end, reduce or suspend contributions to their 403(b) plans. Ten percent of all respondents have suspended or reduced the matching contribution and 7.5% have suspended or reduced the non-matching contribution (some plans have both types of contributions)."

Tags: 403(b) Plans and Annuities

Text of IRS Notice 2020-83: 2020 Required Amendments List for Qualified Retirement Plans and § 403(b) Retirement Plans (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Nov. 20, 2020

"The Required Amendments List applies to both individually designed plans qualified under Section 401(a) and individually designed plans that satisfy the requirements of Section 403(b).... Part A. Changes in requirements that generally would require an amendment to most plans or to most plans of the type affected by the change. None ... Part B. Other changes in requirements that may require an amendment. [1] Difficulty of care payments treated as compensation for retirement contribution limitations (SECURE Act section 116).... [2] Application of cooperative and small employer charity pension plans."

Tags: 403(b) Plans and Annuities  •  Retirement Plan Amendments

IRS Guidance Provides More Detail on Terminating 403(b) Plans
Groom Law Group Link to more items from this source
[Guidance Overview]
Nov. 20, 2020

"Rev. Rul. 2020-23 ... [provides] guidance for satisfying the distribution requirements in a plan termination where a 403(b)(7) custodial account is distributed as an individual custodial account 'in kind' to a participant or beneficiary, generally where the participant or beneficiary does not affirmatively elect a distribution. The guidance is retroactively effective for taxable years beginning after December 31, 2008."

Tags: 403(b) Plans and Annuities

403(b) Plan Issues When Bringing Back Laid Off or Furloughed Employees
PLANSPONSOR; free registration may be required Link to more items from this source
Nov. 17, 2020

"[1] Service crediting ... [2] Employer contributions ... [3] Employee contributions ... [4] Plan distributions."

Tags: 403(b) Plans and Annuities  •  Coronavirus (COVID-19)  •  Retirement Plan Administration

New IRS Guidance Will Facilitate 403(b) Plan Terminations
Verrill Dana LLP Link to more items from this source
[Guidance Overview]
Nov. 11, 2020

"Revenue Ruling 2020-23, issued ... under the SECURE Act, confirms that a plan administrator or custodian of a 403(b) plan may distribute individual custodial accounts in kind to participants as part of the termination process. This is the case even if the individual custodial account originated as part of a group contract. When combined with Revenue Ruling 2011-7, which blessed the distribution of individual annuity contracts as part of a termination process, this new guidance fills the final gap in the rules governing 403(b) plan terminations."

Tags: 403(b) Plans and Annuities

IRS Issues 403(b) Plan Guidance Under the SECURE Act
Thomson Reuters Practical Law Link to more items from this source
[Guidance Overview]
Nov. 10, 2020

"Revenue Ruling 2020-23 ... provides guidance, as directed by the SECURE Act, on the distribution of individual custodial accounts upon the termination of ... Section 403(b) plans. In Notice 2020-80, the IRS requests comments on the application of annuity and spousal rights provisions related to distributions from 403(b) plans."

Tags: 403(b) Plans and Annuities  •  SECURE Act

IRS Simplifies Certain 403(b) Plan Terminations
planadviser Link to more items from this source
Nov. 9, 2020

"Rev. Rul. 2020-23 now provides that 403(b) retirement plans funded through individual or group 403(b)(7) custodial accounts can be terminated through the distribution of individual custodial accounts. The guidance establishes that, if a distributed custodial account continues to comply with certain requirements, no portion of the distributed custodial account is includible in gross income until such amounts are actually paid out of the account to a participant or beneficiary."

Tags: 403(b) Plans and Annuities  •  Misc. Distribution Issues

Text of IRS Notice 2020-80: Request for Comments Regarding Protection of Annuity and Spousal Rights Under Section 205 of ERISA with Respect to a Terminating § 403(b) Plan Funded Through the Use of Custodial Accounts (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Nov. 5, 2020

"For a Section 403(b) plan that does not have a participant to whom the annuity and spousal rights provisions of section 205 of ERISA apply, Rev. Rul. 2020-23 provides guidance allowing the distribution of an ICA in kind as part of the termination of the plan. However, issues remain regarding the application of section 205 of ERISA in connection with a distribution of an ICA in kind under section 110 of the SECURE Act for a Section 403(b) plan with at least one participant to whom section 205 of ERISA applies, including if a participant cannot be reached, a participant does not elect to waive the QJSA and QPSA form of benefit, or a married participant elects to waive the QJSA and QPSA form of benefit but the participant's spouse does not consent to the waiver.

"The Department of the Treasury and the IRS request comments on the application of ERISA section 205 annuity and spousal rights provisions in connection with a distribution in kind of an ICA under section 110 of the SECURE Act, including any administrative or other burdens that may arise and potential methods or rules that could minimize or eliminate those burdens."

Tags: 403(b) Plans and Annuities  •  SECURE Act

Text of IRS Rev. Rul. 2020-23: Distribution of Individual Custodial Accounts in Kind Upon Termination of a § 403(b) Plan (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Nov. 5, 2020

"Issue: Whether a § 403(b) retirement plan funded through the use of § 403(b)(7) custodial accounts that takes the actions described in this revenue ruling has been terminated in accordance with the rules of § 1.403(b)-10(a), and whether distributions made to participants or beneficiaries in connection with termination of the plan are includible in gross income....

"Holding: In [two actions described in this revenue ruling], Plan A is terminated in accordance with the rules of Section 1.403(b)-10(a). Distribution of an ICA in kind to a participant or beneficiary is not includible in gross income until amounts are actually paid to the participant or beneficiary out of the [individual custodial account (ICA)], so long as the ICA maintains its status as a Section 403(b)(7) custodial account. Any other amount distributed from a custodial account to a participant or beneficiary to effectuate plan termination is includible in gross income, except to the extent the amount is rolled over to an IRA or other eligible retirement plan by a direct rollover or by a transfer made within 60 days."

Tags: 403(b) Plans and Annuities  •  Misc. Distribution Issues  •  SECURE Act

Big Changes May Be Coming to Retirement Plans
Forbes Link to more items from this source
Oct. 28, 2020

"A bipartisan bill has been introduced in the House that would make significant changes to 401(k), 403(b), IRAs and other retirement plans. From increasing the required minimum distribution (RMD) and catch-up contributions to expanding automatic enrollment and the Saver's Credit, the legislation is poised to expand retirement savings options for millions of individuals."

Tags: 401(k) Plans  •  403(b) Plans and Annuities  •  IRAs  •  Retirement Plan Policy

The Duties and Responsibilities of a 457(b) or 401(a) Plan Administrator
Best Best & Krieger LLP Link to more items from this source
Oct. 23, 2020

"[If] the provider is acting only in a 'ministerial' capacity, or is merely making recommendations (perhaps as a co-fiduciary) for the plan administrator's consideration, the ultimate responsibility and liability stays with the plan administrator. If you think your providers are taking responsibility for certain aspects of plan administration, it is critical to review your service agreements to confirm this."

Tags: 403(b) Plans and Annuities  •  457 Plans

Retirement Planning Becomes Top Focus for 403(b) Employee Education
Principal Financial Group Link to more items from this source
Oct. 22, 2020

"More than a third of organizations now state that their primary purpose for providing plan-related education is retirement planning (34.8%), outpacing the previous years' top goal of increasing participation ... Thirty percent of organizations initiated a cybersecurity awareness campaign related to retirement plans, and a third distributed email alerts about specific security issues in 2019 ... More participants contributed to their plan this year, 76.6%, up from 72.0%. Plan sponsor contributions up to 6.3%, from 5.5; Participants now contribute 7.2%, up from 6.6%."

Tags: 403(b) Plans and Annuities  •  Retirement Plan Administration  •  Retirement Plan Design

Proposed Legislation Would Let 403(b)s Use PEPs
InvestmentNews; subscription may be required Link to more items from this source
Oct. 21, 2020

"The first PEPs would be able to launch next year and would be open to 401(k) plans operated by for-profit organizations. While plan providers are eager for what they anticipate will be a large amount of business in that area, 403(b)s could represent an even greater opportunity."

Tags: 403(b) Plans and Annuities  •  Retirement Plan Administration  •  Retirement Plan Design

Supreme Court Weighs Tackling Northwestern 403(b) Fee Case
Pensions & Investments Link to more items from this source
Oct. 6, 2020

"The U.S. Supreme Court asked the acting U.S. solicitor general for an opinion in an ERISA fee fight case before the justices decide if they will hear the complaint involving two 403(b) plans run by Northwestern University, Evanston, Illinois. Participants in the two plans petitioned the Supreme Court on June 19 after having lost at both the federal District Court and federal appeals court levels in their allegations that the university and its fiduciaries violated ERISA guidelines in managing the plans." [Hughes v. Northwestern Univ., No. 18-2569 (7th Cir. Mar. 25, 2020; cert. pet. filed Jun. 19, 2020)]

Tags: 403(b) Plans and Annuities  •  Fiduciary Duties

Making 403(b) Lemonade When Your Investment Choices Are Lemons
403bwise Link to more items from this source
Sept. 29, 2020

"[Here is a list of] the 104 school districts and three community colleges lacking at least one quality 403(b) vendor choice ... [including the] number of employees ... based on information in the National Center for Education Statistics database."

Tags: 403(b) Plans and Annuities  •  Retirement Plan Investment Costs

403(b) Retirement Plan Fee Litigation: September 2020 Update
Cammack Retirement Group Link to more items from this source
Sept. 29, 2020

"For the first time in nearly two years, a new lawsuit was filed against a university (University of Miami). Four new healthcare lawsuits were filed, two against Sutter Health of California, and one each against Mercy Health of Illinois and MedStar Health of Maryland ... The 8th Circuit Court of Appeals overturned a trial court's dismissal of one of the two claims in the Washington University in St. Louis case, while affirming the dismissal of a second claim."

Tags: 403(b) Plans and Annuities  •  Retirement Plan Investment Costs

Cornell Crafts Cash Settlement with Schlichter
National Tax-Deferred Savings Association [NTSA] Link to more items from this source
Sept. 24, 2020

"The suit -- one of the first of the genre filed four years ago -- was filed on behalf of some 28,000 current and former plan participants in Cornell's 403(b) plan, a plan that, as of December 2014 had $1.9 billion in assets. The one remaining claim -- and the one item that was addressed in the settlement -- was the issue of the plan's utilization of retail class mutual funds when less expensive, institutional class shares were available." (Cunningham v. Cornell Univ., No. 16-6525 [S.D.N.Y. motion for settlement approval filed Sep. 21, 2020)

Tags: 403(b) Plans and Annuities  •  Fiduciary Duties  •  Retirement Plan Investments

SEC Cracks Down on 403(b) and 457(b) Advisers' Undisclosed Compensation and Conflicts
Proskauer Link to more items from this source
Aug. 13, 2020

"As part of the negotiated settlement, VFA agreed to an undertaking capping its management fees at 45 basis points for all Florida K-12 teachers who currently participate (and, in some cases, those who prospectively participate) in its advisory product in Florida's 403(b) and 457(b) retirement programs. The cap will remain in effect for the duration of the clients' enrollment in the programs.... As it has in recent enforcement initiatives, the SEC put market participants on notice that it would be looking closely at the administration of 403(b) and 457(b) plans whose beneficiaries are 'main street investors,' despite that they are administered, in many cases, by large government agencies."

Tags: 403(b) Plans and Annuities  •  457 Plans  •  Retirement Plan Investments


<< Older News  |  January 24, 2021

© 2021 BenefitsLink.com, Inc.