Compliance Monitoring Services
TIAA-CREF offers a range of services to help you proactively monitor and meet your compliance requirements.
- Contribution Limit Monitoring: 402(g) Limits and 414(v) Catch-up Provision
TIAA-CREF provides assistance in monitoring Section 402(g) limits, including Section 414(v) age 50 and over catch-up contributions. Elective deferral reports are currently produced in February and September on a per-plan basis, identifying those employees who may have exceeded the contribution limits under 402(g) and the age 50-and-over catch-up contributions. If the employee contribution limit(s) have been exceeded, TIAA-CREF can process the necessary refunds and issue the employee the 1099R for the excess refund, upon plan sponsor request.
- Contribution Limit Monitoring: 415(c) Aggregation
415(c) requires that a participant’s annual additions not exceed the lesser of annual dollar limits or 100% of compensation. Participants’ annual additions are the sum of the employer contributions, their own contributions (both pre- and post-tax) and forfeitures allocated to their account for a limitation year.
Annually, based on the plan year, TIAA-CREF produces a report, on a per-plan basis, of participants who may have exceeded the dollar limit under 415(c). If the employee’s annual additions have been exceeded, TIAA-CREF can process the necessary refunds and issue the employee the 1099-R for the refund, upon plan sponsor request.
- Loan and Hardship Withdrawal Services
For multi-vendor plans: TIAA-CREF Compliance Coordinator is a web-based tool designed to help multi-vendor plans satisfy the loan and hardship withdrawal requirements of the final 403(b) regulations. Compliance Coordinator prevents noncompliant transactions before they occur by providing vendors with the data they need to verify that maximum available loan amounts will not be exceeded and that all available distributions are received before a hardship withdrawal will be permitted. Compliance Coordinator also provides sponsors with plan-wide reporting of summary and individual-level loan and hardship withdrawal activity across all participating vendors.
For single-vendor plans: TIAA-CREF processes loans in accordance with the requirements of the Internal Revenue Code (IRC) and the Internal Revenue Service (IRS) loan regulations. TIAA-CREF will verify outstanding loans across all TIAA-CREF contracts for all plans of the employer that offer loans. If an employee has defaulted on a prior loan, TIAA-CREF verifies whether the default decreases the amount available for a new loan or prevents the new loan from being issued. TIAA-CREF’s hardship services include determination by TIAA-CREF of a hardship and processing of the distribution or accommodation and processing of administrator-approved transactions. If TIAA CREF makes the determination, Safe Harbor methodology as permitted by the IRS regulations will be followed, including requiring proof of hardship needs, evaluation of loan or distribution availability and suspension of contributions or distribution uses and suspension of contributions.
- Non-Discrimination Testing Assistance
TIAA-CREF offers resources to help administrators ensure that their retirement and tax-deferred annuity plans comply with the IRS non-discrimination requirements, including the non-discrimination guides for 403(b) and 401(a) plans, Keeping Your Plan in Shape. TIAA-CREF’s software package and guide, which are available online, will help you complete the 401(m) Matching Test that applies to contributory retirement plans.
- Universal Availability Compliance Support
Under IRC 403(b), if an employer sponsors a salary reduction 403(b) plan, all non-excludable employees must be given the opportunity to make elective deferrals of $200 or more to the plan. The final 403(b) regulations require plan sponsors to provide eligible employees with effective notice of their right to participate in the plan. In addition, the final regulations clarify the exclusion permitted for employees normally working less than 20 hours a week that will require the employer to monitor the hours of all employees who normally work fewer than 20 hours each week to ensure that they do not work more than 1000 hours in a 12-month period. TIAA-CREF provides a Universal Availability template to assist ERISA and non-ERISA plans comply with this requirement.