Updating 403 b plan
*Employer 101 contracts with vendors A, B, E, F and G for its 403(b) plan.*Employer 101 must select one additional vendor, other than A, B or C, for a total of 4 vendors in addition to providers A and B of the DC Plan.*Employer 102 contracts with vendors H, I J, L, N and Q for its 403(b) plan.*Employer 102 does not need to select any additional vendors.*Employer 103 contracts with vendor C for its 403(b) plan.*Employer 103 must select four additional vendors, other than A, B or C, for a total of 4 vendors in addition to provider C of the DC Plan.
The PSERS Board approved the following investment options to be made available to the DC Plan participants: T.
A pre-approved plan can take different forms, but essentially it is a document with some options that the employer selects, and additional standard terms that apply universally.
The options and the standard terms are submitted to the IRS for approval, so that any employer that timely adopts the documents can rely on the IRS opinion issued to the sponsor of the pre-approved document that it meets all IRS requirements.
However, the specific reference to 402(e)(3) implies that earnings on elective deferrals (including earnings on 403(b) elective deferrals) would be included in the definition of hardship, since it is specifically those contributions that are mentioned in 402(e)(3).
Thus, it would appear that hardship distributions will include earnings on elective deferrals, even for 403(b) plans.
Act 5 does not mandate that school employers create a 403(b) or 457 plan.In Revenue Procedure 2017-18, the IRS announced a deadline of March 31, 2020 for adopting pre-approved 403(b) plans in order to receive retroactive relief for any noncompliant plan provisions.Shortly thereafter, it began issuing opinions on plans submitted by sponsors of volume submitter and prototype 403(b) plan documents.In other words, the school district must maintain four vendors that are not also a provider for the DC Plan.For example, PSERS DC PLAN selects providers A, B and C for the DC Plan.
However, a careful reading of the final 403(b) regulations may throw a bit of a monkey wrench into this process, as follows (again, the reduced by the aggregate dollar amount of the distributions previously made to the participant from the contract. [email protected] Subject: Ask the Experts, and the Experts will do their best to answer your question in a future Ask the Experts column.