If you have been following along with the ADMIN blog, then then IRS Pre-Approved 403(b) Prototype Plan might sound familiar. As experts in the 403(b) marketplace, ADMIN has spent the past few years educating employers and financial advisors on the prototype and what it means for existing 403(b) retirement plans.
This initiative by the IRS has tightened the regulations surrounding 403(b) Plans and has made the option of self-administration much more challenging for Plan Sponsors. The pre-approved plan provides 403(b) Sponsors the reliance that the provisions of their retirement plan are in compliance. The approved plan documents also lend a ‘seal of approval’ on the document from the IRS should the plan face an IRS audit in the future.
With the deadline only a few weeks away, it is imperative that both Plan Sponsors and Financial Advisors consider how these changes to 403(b) plans will impact their retirement plan.
PLAN SPONSORS
If you are a 403(b) Plan Sponsor, we encourage you to use this time to evaluate your current plan document and determine if your retirement plan is prepared for these changes:
Do you have a copy of your current plan document?
Is your plan document up to date?
Have you adopted the IRS Pre-Approved 403(b) Prototype Plan?
Are you currently self-administering and if so, do you have the expertise that is required to keep your plan IRS compliant?
FINANCIAL ADVISORS
As a financial advisor, we encourage you to consult with your 403(b) clients to ensure they are aware of the updates happening in the 403(b) industry.
Have they adopted the IRS Pre-Approved 403(b) Prototype Plan?
Do they have the time to dedicate to this new effort?
Do they have the necessary expertise in-house?
Could they benefit from the assistance of an experienced TPA?
Ultimately there have been a lot of questions and concerns in the 403(b) market surrounding these new changes and ADMIN is here to help! Feel free to contact our team of experts to see how we can help you update your plan and get your 403(b) plan compliant!
