Final Regulations: Healthcare and Not-for-profit Organizations

With the final IRS regulations generally in effect January 1, 2009, the IRS will expect plan sponsors to be very involved in operating their 403(b) plans. These regulations impose greater responsibility on you for managing information and duties related to your 403(b) plan, including:

  • Written documentation of plan features
  • Approval of loans, hardship withdrawals, transfers and other distributions
  • Notices sent annually to remind your employees about their ability to save for retirement through your 403(b) plan

These new tasks will mean more work for you and your staff; and, because the IRS will be auditing plans, more accountability as a Plan Sponsor. Now more than ever, you can rely on ING U.S. to offer the assistance, information, tools and services you need to comply with these new IRS rules.

Information for Healthcare and Not-for-profit Organizations

A Plan Sponsor Guide to Distributions under a Healthcare/Not-for-Profit 403(b) Plan

403(b) Programs - A Guide For Section 501(c)(3) Organizations

403(b)/401(k) Comparison for 501(c)(3) organizations

ERISA/Non-ERISA Comparison Chart

Are you now a plan fiduciary under the 403(b) regulations?

 

403(b) Plan Documents

ING U.S. is pleased to provide you with the following 403(b) Plan Documents for Healthcare and Not-For-Profit Organizations. A plan sponsor should review the appropriate plan document, together with legal counsel to the extent appropriate, to determine whether additional modifications to the plan document may be necessary to address specific facts, circumstances, and applicable law.

ING U.S. Specimen Non-ERISA 403(b) Plan Document for 501(c)(3) Church Organizations - Employee Deferrals Only

Please note that this document is offered by ING U.S. as:

  • a 403(b) plan document for 501(c)3 organizations intended to meet the requirements of the final 403(b) regulations issued on July 24, 2007 (Federal Register (72 FR 41128));
  • a plan document substantially similar to the IRS model plan language under Rev. Proc. 2007-71. The document has not been reviewed or approved by the Internal Revenue Service.

How to adopt the ING U.S. Non-ERISA 403(b) Plan for 501(c)(3) Church Organizations

Board Resolution - Non-ERISA 403(b) Plan for 501(c)(3) Church Organizations - Specimen Board Resolution to authorize adoption of the plan document and to authorize plan representative to sign the document.

ING U.S. Specimen Plan Document for ERISA 403(b) Plans - Enhanced for Roth 403(b) and Employer Contributions

Please note that this document is offered by ING U.S. as:

  • a 403(b) plan document for ERISA Plans intended to meet the requirements of the final 403(b) regulations issued on July 24, 2007 (Federal Register (72 FR 41128));
  • a plan document substantially similar to the IRS model plan language under Rev. Proc. 2007-71. Additional features in this 403(b) plan document are the ability to offer Roth 403(b) and/or Employer Contributions under your 403(b) plan, which are not addressed by the IRS model plan language. The document has not been reviewed or approved by the Internal Revenue Service.

How to adopt the ING U.S. 403(b) plan document for ERISA 403(b) Plans - Enhanced for Roth 403(b) and Employer Contributions

Board Resolution - ERISA 403(b) Plan for 501(c)(3) Organizations - Specimen Board Resolution to authorize adoption of the plan document and to authorize plan representative to sign the document.

Sample ERISA 403(b) Summary Plan Description - If you have adopted ING U.S.'s specimen ERISA 403(b) Plan for a 501(c)(3) Organization (Serial Number: 403(b) HC-2(4/08)), you will need to provide your participants with a summary plan description (SPD) in order to meet ERISA requirements. This sample SPD is intended for use only by those sponsors who have adopted the ING U.S. ERISA 403(b) specimen plan document a word-for-word basis. Please consult with your counsel to determine if the sample SPD meets your plan's needs, and to complete the document prior to distribution to participants.

Universal Availability Notices

Under the Universal Availability rule1, the IRS mandates that if an Employer permits one employee to defer salary into a 403(b) plan, the Employer must extend this offer to all employees of the organization. The regulations further require that at least once a year the Employer inform employees that they are eligible to participate in the 403(b) plan, the period of time during which this election may be made and any other conditions. If employees are not made aware that they are eligible, the 403(b) plan could violate "universal availability" and potentially be disqualified. Below, ING U.S. has provided specimen notifications to assist Employer compliance.

1 Internal Revenue Code Section 1.403(b)-5(b)

Sample Universal Availability Notice

Sample Universal Availability Notice in Spanish 

Information Sharing Agreement

If you have amended your plan document to reflect that in 2009 or later an investment provider is no longer approved to receive contributions under the 403(b) plan, that investment provider needs to enter into an information sharing agreement with you in order to be authorized to receive contract exchanges after January 1, 2009.

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