Updating 403 b plan
Eligible employers who can take advantage of this new 403(b) plan program include: In July of 2007, 403(b) regulations were updated for the first time since 1964.
In addition to other guidance, the new regulations required that all 403(b) plans be maintained pursuant to a written plan that, in both form and operations, satisfied the regulations of Section 403(b) and the final 403(b) regulations.
More than anything, this change will bring plan sponsors confidence that their plan is written in compliance with IRS requirements.
While March 31, 2020, may feel like a long time away, plan sponsors should begin reviewing their options for updating their plan to meet the new regulations.
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Clifton Larson Allen (CLA) professionals can help review your current plan design and prepare restated plan documents for all types of 403(b) plans, including The Employee Retirement Income Security Act of 1974 (ERISA) plans, governmental plans, deferral only plans, and church plans.
You will pay a separate premium for Medicare Part B.
This news follows the IRS’s introduction of a pre-approved document program in 2013.
With this change, plan sponsors may adopt either prototype or volume submitter plans, which will the help narrow the gap between 403(b) and 401(k) plan documents and establish similar compliance standards.
* All costs associated with loans made after the effective date of the provision will be borne by the borrower.
Medicare Part A and PEIA: Medicare Part A is an free entitlement available to most people at the attainment of age 65 or earlier for disability and some specific medical conditions.