The Internal Revenue Service has issued final regulations on 403(b) plans that generally become effective on January 1, 2009.
The written plan requirement deadline has been extended to December 31, 2009. This is for the written portion only, compliance to the new regulations is still a requirement as of December 31, 2008. Click
here to view information regarding the extendsion deadline.
These regulations will impact all 403(b) plans and are comprehensive on the governance of such plans. The final regulations require, among other things, a written plan document that contains the material plan provisions. The consequences of not meeting the new regulations can be severe. Penalties for failure to comply may include, but are not limited to, immediate taxation of each participant’s balance. If MBA is your sole investment and service provider, your compliance implementation can be easy. (NOTE: Compliance may be more complex if using multiple providers.)
Click here to view the benefits of utilizing the MBA 403(b) retirement plan for your ministry.
Click here to read an excerpt regarding the 403(b) regulations from Richard Hammar's Church Law & Tax Report newsletter.
The site will be updated regularly as additional information is available and as guidance is received from our legal advisors. In order to best help you, please take a moment to give us some information about your current retirement plan by responding to the
employer retirement survey.
