For years, the IRS talked about the idea of a pre-approved plan document for 403(b) Plans. Well, the talking has stopped and now things are in action. A deadline date of March 31, 2020 has been set for the pre- approved 403(b) plan document and Plan Sponsors need to ensure their plans are prepared. With the quickly approaching deadline in mind, ADMIN wants to take a moment to quickly talk about the 403(b) Prototype Document.
Prior to 2008, the IRS did not have requirements on 403(b) Plans and their plan documents. However, they have spent the last few years talking about the release of a pre-approved plan document that would not only unify 403(b) Plans, but also ease the auditing process. The introduction of the prototype has created a lot of questions for Plan Sponsors to consider especially when it comes to the current document they have for the plan. Sponsors should be looking at their existing document to make sure it is up to date, relative to the needs of the employees within their organization, and that they are operating within the terms of the written document.
Using the pre-approved document ensures that a Plan is in compliance with the 403(b) rules and regulations. However, the prototype has also made it much harder for sponsors to self-administer their 403(b) retirement plan. There is a level of detail that must be met when taking on the complex design of the document along with the newly required administrative appendix for each plan type. Knowing this, ADMIN Partners has crafted a solution that gives Plan Sponsors the peace of mind to know that their Plan will be in compliance and on the pre-approved document by the deadline.
Stay tuned for our next blog post which will elaborate on our efforts to help Plan Sponsors.
Do you have more questions about how you can better manage your retirement plan? Feel free to reach out to us anytime by calling us (toll free) at 8 7 7 – 4 8 4 – 4 4 0 0 or via email at [email protected].