Articles on 403(b) Plans

• Whither Goes the 403(b) Market in 2008? (PDF) : From Still River Retirement Planning Software, Inc.) : Excerpt:The regulations impose specific documentation and compliance obligations on plan sponsors, well beyond previously defined responsibilities (except for plans that are already ERISA plans). These obligations create both administrative tasks and potential liabilities.
• New 403(b) Transfer Rules : From www.403bwise.com : New 403(b) regulations set to go into effect January 1, 2009 will impose new rules on the transfer of 403(b) money. "Old style" outside-of-plan 90-24 transfers will not be permitted after September 24, 2007. Note: New regulations are still being interpreted and this story represents our best understanding of transfer rules now.
• The Employer Get Wise Guide to the New 403(b) Regs: From www.403bwise.com: New 403(b) regulations which will go into effect January 1, 2009 offer employers a unique opportunity to drastically improve the quality and cost of their 403(b) retirement plan. What follows is an employer guide for capitalizing on this opportunity to create a plan worthy of your most important asset: your employees. State of the 403(b). Currently, 403(b) plans are beset by an over-reliance on high-fee insurance-based products. As of 2006, close to 80% of the $652 billion dollars invested in the 403(b) was parked in annuity products. Of this amount, 34% was invested in variable annuity products. Not only are fees typically much higher in variable annuity products
• Options for Dealing with Poor 403(b) Investment Choices: From www.403bwise.com: If you don't like your employer's offerings you are not alone. Fortunately, you have some options and resources The best course of action is a frontal assault. Simply ask your employer to begin offering better choices. Enlist co-workers, and point out the differences in fees and performance. Use the chart from this story on fees to clearly show the effects of high-fee investments on return. Many employers, especially K-12 ones, claim that it is too difficult to offer low-fee plans and be in IRS-compliance. Nonsense! Point them to this story about crafting a Model 403(b) Plan.