Kelley Drye's Employee Benefits and Executive Compensation Department has prepared a client advisory describing the new 403(b) regulations which are effective this year. The changes are extensive and generally will require significant actions on behalf of sponsoring employers to bring their plans into compliance.
What This Means to You
403(b) Plans (also known as tax-deferred annuities) are the preferred benefit plan for most not-for-profit employers. If your organization sponsors a 403(b) plan, this Advisory has important information for you. Plan sponsors of both ERISA and non-ERISA 403(b) plans must take action to ensure their 403(b) plans are in compliance with the Final Regulations by January 1, 2009.