Gatekeeper Administration & Consulting, LLC

Additional Guidance Provides Model Plan Language for Public School 403(b) Plans

Background

On November 27, 2007, the IRS published supplemental guidance offering model plan language for public schools to use in preparation and adoption of a written plan document  as required under the final § 403(b) regulations issued on July 26, 2007.  This language may also be used as a reference for other eligible employers who offer 403(b) plan arrangements.

Other issues addressed include:

• Clarification defining the differences between a transfer of funds related to a change in the investments among vendors who are permitted to receive contributions to the plan and a contract exchange with vendors who are not permitted to receive plan contributions but who have entered into information sharing agreements with the employer;
• Relief for contracts issued after December 31, 2004 and before January 1, 2009 by vendors who are discontinued as vendors permitted to receive contributions to the plan or hold contracts issued only through a contract exchange; and
• Relief for contracts issued prior to 2009 that are held by former employees or beneficiaries. Read on...