COLLECTED WISDOM™ On 403(b) Plans

Best Practices for Multiple Vendor 403(b) Plans - Form 5500 Aggregation - Summary: ERISA covered 403(b) plans that use multiple vendors must gather and aggregate data from their vendors in order to complete Form 5500. This aggregation has created unique challenges. These best practices were developed to address the challenges. Located at: The Spark Institute , August 2010.

Exercising Fiduciary Control Over the Investment Menu in 403(b) Plans - Summary: Under ERISA 403(b) plans, the plan sponsor and other fiduciaries are responsible for the management of the plan and its investments in accordance with the demanding standards of ERISA Section 404. There are four central duties under this provision, which require fiduciaries to act. Located at: Plansponsor.com, August 2010.

The 403(b) Market - Summary: This chart illustrates the distribution of investments in the 403(b) market as of December 31st of each year. The numbers represent billions of dollars invested. Located at: 403bwise.com, June 2010.

2010 403(b) Plan Survey Highlights - Summary: Findings of the just-released 2010 403(b) Plan Survey from the Profit Sharing/401k Council of America indicate that plan sponsors are adjusting well to the new regulations imposed by the IRS and that participation and retirement account balances remain high. This page contains highlights of the survey. Located at: Profit Sharing/401k Council of America, May 2010.

PODCAST: 403(b) Plan Update - Summary: Kevin Kidwell of American United Life Insurance Company discusses trends among 403(b) plans and plan sponsors, who are striving to keep up with fiduciary responsibilities. Located at: Plansponsor.com, April 2010.

PODCAST: Advisors Guide to Helping 403(b) Clients Manage Their ERISA Challenges - Summary: This is a podcast which detailed the steps an advisor can take in assisting their clients in winding their way through the maze of ERISA issues that 403(b) plans need to deal with. It also includes some thoughts on moving a plan from non-ERISA status to ERISA status. Podcast is just over 45 minutes long. Located at: The Standard, March 2010.

403(b) Retirement Plan Audits - Frequently Asked Questions - Summary: The AICPA 403(b) Plan Audit Task Force has prepared these questions and answers to assist plan auditors and plan administrators in implementing the DOL financial statement audit requirements for section 403(b) retirement plans that are subject to ERISA. Located at: Business of Benefits Blog , March 2010.

Guidelines for Multiple Vendor 403(b) Plans - 2009 Form 5500 Aggregation - Summary: 2009 Form 5500 aggregation across multiple investment-provider vendors is expected to create unique challenges. As such, these 2009 Guidelines were developed exclusively to address the challenges of completing the 2009 Form 5500. Located at: The Spark Institute , January 2010.

Bringing Higher Education 403(b) Plans Up-to-Date with Current ERISA Fiduciary Best Practices - Summary: This white paper, released by Diversified Investment Advisors, Inc., was developed to help higher education plan sponsors understand when and how ERISA applies to 403(b) plans, as well as provide best practice recommendations for complying with fiduciary requirements. Located at: Groom Law Group , December 2009.

Addressing 403(b) Plan Issues - Summary: This is the first of a two part article addressing issues that private sector 403(b) sponsors need to be concerned about, with some recommendations on how to deal with them. Located at: Reish & Reicher, PC, December 2009.

Impact of Economic Conditions on 403(b) Plans - Summary: PSCA's "Impact of Economic Conditions on 403(b) Plans" reflects responses from 609 not-for-profit organizations that currently sponsor a 403(b) plan. Data in this survey is often categorized by plan size. Plan size is determined by the number of active participants in the organization's plan. Located at: Profit Sharing/401k Council of America , December 2009.

403(b) Plan Compliance Checklist - Summary: This is a checklist to help determine if your ERISA-covered 403(b) plan is in compliance, and where your exposure may lie in the event of an audit. Located at: Diversified Investment Advisors , November 2009.

403(b) Universal Availability - Summary: The universal availability requirement applies to all 403(b)s, except for church plans. The universal availability rule permits all the right to defer and thus does not favor HCEs; and because the ability to make deferrals is universally available, there is no ADP test. Located at: McKay Hochman, November 2009.

IRS Publishes Sample 403(b) Prototype Document Language - Summary: The draft information package contains samples of plan provisions that satisfy certain specific requirements of the Internal Revenue Code applicable to section 403(b) plans, and as provided in Announcement 2009-34, interested persons are invited to submit comments to the IRS on the sample plan provisions. Located at: Plansponsor.com (free registration may be required), April 2009.

403(b) Action Plan Workbook - Summary: To assist plan sponsors and financial advisers Benefit Plans Plus offers complementary 403(b) Action Plan Workbook to serve as in initial reference guide and information source to work toward IRS compliance. Located at: Benefits Plans Plus , December 2008.

New Survey Fills the Gap in 403(b) Benchmarking Data - Summary: PSCA has released their 2008 403(b) Plan Survey. This new survey is the first of its kind, providing comprehensive information on 403(b) plan practices. Located at: 401khelpcenter.com, December 2008.

403(b) Plans Technical Questions and Answers - Summary: The SPARK Institute received a significant number of questions regarding the Best Practices from companies that are actively developing systems to follow them. They have prepared this 403(b) Plans Technical Questions and Answers to address many of the quesitons. Located at: SPARK Institute, December 2008.

403(b)/401k Comparison Chart - Summary: This is a chart that compares code §403(b) with code §401k plans. Located at: McKay Hochman, December 2008.

403(b) Regulations: Understanding the Changes - Summary: This resource provides the 403(b) plan sponsor with a review of the new IRS regulations, answers to commonly asked questions and concerns, and a game plan for streamlining your compliance process. Located at: The Standard , September 2008.

Fixing Your 403(b) Plan: Adopting a Best Practices Approach - Summary: The IRS has issued final 403(b) regulations, the first comprehensive guidance in 43 years. These new regulations offer an opportunity to create a better retirement plan for all by adopting a best practices approach. Located at: The Standard , September 2008.

The New 403(b) Plan Documents and ERISA - Summary: The author says, "As we sit down and attempt to craft our new 403(b) plan documents to meet the January 1 deadline, that dreaded question of whether or not any particular 403(b) plan is subject to ERISA's Title I reach really comes home to roost." Located at: Benefits Biz Blog, August 2008.

Final 403(b) Regulations -- How They Affect Plan Sponsors - Summary: Sponsors of 403(b) plans—typically school districts, higher education institutions, health care providers, and charitable organizations—will soon have increased responsibilities for overseeing investments, transfers, documentation, administration, and participants' disclosures. Located at: Vanguard, September 2008.

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