403(b) Program Riding Out the Storm- 403(b) & 457(b) Retirement Plan Issue

403(b) Program Presentation Overview Public School 403(b) Plan Document Requirements Common 403(b) & 457(b) Errors New Retirement & Savings Initiatives How to Get More Information

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403(b) Program Daniel S. Gardner Contact Information

403(b) Program The Written 403(b) Plan Req. Originally Required 1/1/09 Revenue Procedure Model Plan For Public Schools As of 1/1/09, No IRS Pre-Approved or Determination Letter Program Not Everyone Was Ready, So………

403(b) Program Notice Issued 12/11/08 Transition Relief- Written Plan Requirement Calendar Year Not a Free “Push Back” of Date Written Plan is Required By, Since………..

403(b) Program Relief is Based on Plan Sponsor’s Actions! Written Plan- Adopted On or Before 12/31/09 –Intend to Satisfy 403(b), Including Regulations During 2009-Operate In Accordance With a Reasonable Interpretation of 403(b) & New Regulations On or Before 12/31/09, Best Efforts Made to Retroactively Correct 2009 Operation To Conform With The Written Plan

403(b) Program What are “Best Efforts” for 2009 Corrections? Employee Plans Compliance Resolution System (EPCRS) – Rev. Proc Section 6 –General Correction Principals –Main Theme = Restoration of Benefits

403(b) Program The Written Plan – Essential Elements Eligibility (Non-Discrimination Rules) Benefits Dollar Limitations Available Investments Time & Form of Distributions

403(b) Program Loans Hardship Distributions Automatic Enrollment After Tax Roth Accounts The Written Plan – Optional Elements

403(b) Program Elective Deferral Catch-Ups –15 Year Plus Service –Age 50 or Older In-Service Contract Exchanges Transfers Termination 5-Year Post Severance Contribution The Written Plan – Optional Elements- continued

403(b) Program (b) Compliance No Written Plan Form Failures in 2009 – Includes: –Absence of Written Plan or –Amendment of Existing Plan to Comply With Final 403(b) Regulations 2009 IRS Focus – Operational Failures Notice’s Transition Relief Calendar Year Only

403(b) Program Announcement Opinion Letter & Prototype Programs –Draft Revenue Procedure –Draft Sample Plan Language –Request for Comments- June 2009 Next – Determination Letter Program, and…………

403(b) Program Retroactive Remedial Amendments For Years After (b) EPCRS Modifications Announcement

403(b) Program Most Common 403(b) Errors Universal Availability Excess Deferrals- Ordering Rules, Post Severance Sick & Vacation Hardship Distributions- Self Certify Loan Limits- Multiple Vendors

403(b) Program 403(b) Hardship Distb. Safe Harbor Medical Expense Purchase Principle Residence Post Secondary Education Prevent Eviction Funeral Expenses Repair of Principle Residence

403(b) Program Most Common 457(b) Errors Excess Deferrals- Last 3 Years Catch Up, Post Severance Sick & Vacation Unforeseeable Emergency Distb- Self Certify Loan Limits- Multiple Vendors

403(b) Program Unforeseeable Emergency Sudden or Unexpected Illness or Accident Loss of Property Due to Casualty Extraordinary & Unforeseeable Circumstance Beyond Participant’s Control

403(b) Program Unforeseeable Emergency cont. Severe Financial Hardship-Illness or Accident –Spouse –Beneficiary –Dependent

403(b) Program Unforeseeable Emergency cont. Prevent Imminent Foreclosure or Eviction Medical Expense to Include Non- Refundable Deductible Funeral Expenses

403(b) Program Retirement & Savings Initiatives Automatic Enrollment –Rev. Rul Demonstration of Automatic Contribution Increases –Notice Sample language Sponsors Can Adopt

403(b) Program Retirement & Savings Initiatives continued Tax Refund as Savings Bond –2010 Simple Check of a Box –Convert Tax Refund to I Savings Bond –Future Years Purchase for Children or Grandchildren

403(b) Program Retirement & Savings Initiatives continued Save Unused Vacation or Similar Leave –Rev. Rul Annual Contributions As Employer Contribution As Elective Deferral –Rev. Rul Similar Contributions At Termination

403(b) Program What’s New Resources Ask Bob Architect!

403(b) Program How Can I Find Out More?

403(b) Program Ya’ll Come Back Now