Anton Collins Mitchell has written a helpful piece based on Department of Labor and Internal Revenue Service guidance. Five crucial questions must be answered.
Ask the Expert:
Ed Frado, Esq. Tax Compliance Manager, Qualified and Welfare Benefit Plan Services Practice.
Many §403(b) plan sponsors will not be able to answer the
1. Is your §403(b) plan subject to ERISA?
2. How many “participants” does your plan have?
3. Are you operating your plan pursuant to a written plan
4. Do you know where all of the plan’s assets are being held
5. Could you prepare an accurate set of financial statements
If you cannot answer those questions correctly, you may be headed for unpleasant dealings with the IRS and DOL.
By way of background, in our September 5, 2007, email to you, we explained some of the major provisions of the IRS's recently-issued final §403(b) regulations. We noted that these regulations marked the first time since 1964 that the IRS has issued final, comprehensive guidance for §403(b) plans. As a result of the regulations, the §403(b) plan requirements will be more similar to the §401(k) plan requirements than ever before.
Also in that email, we promised to notify you when two additional pieces of guidance were subsequently published. Well, they have been published! Accordingly, this email provides an overview of that significant guidance.
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Ed Frado joined ACM in 2006. He brings his legal expertise combined with nine years experience of specializing in qualified and welfare benefit plan services to ACM. Ed may be reached at 303.830.1120 or firstname.lastname@example.org. To request a pdf of this article or the previously mentioned articles, please send an email with "article request" in the subject line.