403(b) Outlook: Final Regulations and Administrator Checklist
September 6, 2007
In July 2007, the IRS finalized the regulations under Section 403(b) of the Internal Revenue Code. At the same time, the Department of Labor issued a Field Assistance Bulletin (FAB) addressing how the new regulations might affect the ERISA exemption of certain salary-reduction-only 403(b) tax-deferred annuity (TDA) plans. These regulations will generally be effective Jan. 1, 2009.
In spite of the new regulations, most 403(b) plans that have been operating in compliance with guidance provided by TIAA-CREF are not likely to be required to make major changes in the design of their retirement and tax-deferred annuity plans. Nevertheless, there are a number of steps that administrators of all 403(b) plans should take over coming months to review their plan design and operation in light of the new regulatory requirements.
The Administrator Checklist (PDF) will help you review your plan and determine what steps, if any, will be required to bring your plan into compliance with the requirements of the new final 403(b) regulations.