For several years, the Internal Revenue Service has been actively auditing public school districts’ TSA/403(b) programs and has indicated that the audits will continue until IRS field examiners routinely find that employers have compliance practices and procedures in place. Thus, school business officials must actively pursue compliance initiatives. It is imperative that compliance practices and procedures be amended to reflect the substantial changes contained in the Economic Growth and Tax Relief and Reconciliation Act of 2001 and subsequent IRS guidelines. This third edition incorporates the final regulations established on July 26, 2007 and provides both an explanation of the significant changes and a review of specimen forms and other resources prepared by the ASBO Retirement Plan Council (readily available at www.asbointl.org). Every effort is made in this edition to deal with “myths” versus “facts” in terms of interpreting final regulations, as well as suggested “best practices” in continuing to maintain a 403(b) plan without an extensive administrative burden.
Chapter 1 Introduction: What Is in This Guide? Chapter 2 Overview: Final Regulations; Extension of Written Plan Adoption Date Chapter 3 Employer's Options to Comply; If a TPA is Used Chapter 4 Avoiding the Compliance Responsibilities Chapter 5 Structuring and Adopting the Written Plan; Understanding the Inclusion of Non-Grandfathered "Orphan" Accounts. Chapter 6 The Internal Revenue Service Approval Program Chapter 7 ERISA and Fiduciary Issues Chapter 8 Selecting and De-Selecting the Investment & Product Providers Chapter 9 Tax-Free Transfers, Exchanges and Rollovers Chapter 10 Basic Rules For 403(b) Plans; Post Regulation Chapter 11 Types of Contributions Permitted; Limits and Coordination With Your 457(b) plans Chapter 12 Avoiding Violation of the Universal Availability Requirement Chapter 13 Employer Contributions Chapter 14 Communicating With Your Employees Chapter 15 IRS Audits, Corrections & Compliance Projects Chapter 16 The Basics of Governmental 457(b) Plans Chapter 17 Compliance Checklist: 403(b) Plan Chapter 18 Compliance Checklist: 457(b) Plan Chapter 19 Forms & ASBO Resources