Each year, 403(b) Plan Sponsors are obligated to complete a Universal Availability requirement for their retirement plan and ADMIN is here to help! Below is a comprehensive
overview of Universal Availability along with resources for our Plan Sponsor clients.

WHAT IS UNIVERSAL AVAILABILITY (UA)?

Universal Availability is a rule under the IRS that requires employers to inform employees that they are able to contribute elective deferrals (if they wish to do so) within the company’s 403(b) plan.
While certain employees may be excluded from the plan, these limited exclusions require extra scrutiny from the Plan Sponsor and make it easier for the Sponsor to
mistakenly assume certain employees fall under this exemption. CLICK HERE to learn more about these exclusions.

HOW DOES UA IMPACT THE PLAN?

UA is considered a high-level target when 403(b) plans are audited by the IRS. In fact, most of the issues found when a plan undergoes an IRS audit is related to UA and the meaningful notice requirement.
Plans need to be sure to maintain proof of the notice provided to employees each year. Failure to do so can often results in high penalties during an IRS audit. Plans using the
support of a TPA like ADMIN will pay much less in fees to manage these standards than they would in penalties by the IRS.

WHO IS RESPONSIBLE FOR UA?

Under the Universal Availability rule, the responsibility to provide an annual written notice to all employees resides with the Plan Sponsor. This written notice is referred to as the Meaningful Notice Requirement and
informs employees that they are eligible to participant in the 403(b) Plan. While this annual requirement may concern Plan Sponsors, it’s important to note that having a TPA like ADMIN Partners on
board makes the approach to the UA rule a much more manageable process.

ADMIN Partners also record keeps our client’s annual Universal Availability requirements via our Universal Availability Checklist. This online form allows Plan Sponsors to record
their annual notice and ADMIN Partners tracks this data on behalf of the Plan.

WHAT FORMS OF COMMUNICATION DO PLAN SPONSORS USE?

There are many versions of communication that will satisfy the Meaningful Notice Requirement. While the IRS does not mandate how a meaningful notice is provided, ADMIN does encourage Sponsors to
prepare more than one form of communication when providing the notice to their employees. We also provide templates for employers to utilize when sending out their annual notice which takes the administrative
burden away from the Sponsor so they can focus on their day to day. Below is our library of templates:


Looking for assistance with your plan’s Universal Availability requirement? Feel free to contact ADMIN’s team of experts today!
You can reach us via email at Contact@youradminpartners.com, by phone at 877-484-4400 or you can fill out our online contact form here.

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