1. 403(b) Program www.irs.gov/ep Riding Out the Storm- 403(b) & 457(b) Retirement Plan Issue

2. 403(b) Program www.irs.gov/ep Presentation Overview Public School 403(b) Plan Document Requirements Common 403(b) & 457(b) Errors New Retirement & Savings Initiatives How to Get More Information

3. 403(b) Program www.irs.gov/ep GFOASC- 25 Years and Counting Apple Computer Releases the Mac Michael Jackson’s Hair Caught Fire First Infomercials Appear Cosby Show Premiers Term Cyberspace Coined First Woman Vice Presidential Candidate

4. 403(b) Program www.irs.gov/ep Daniel S. Gardner 216-328-2887 Daniel.S.Gardner@irs.gov Contact Information

5. 403(b) Program www.irs.gov/ep The Written 403(b) Plan Req. Originally Required 1/1/09 Revenue Procedure 2007-71- Model Plan For Public Schools As of 1/1/09, No IRS Pre-Approved or Determination Letter Program Not Everyone Was Ready, So………

6. 403(b) Program www.irs.gov/ep Notice 2009-3 Issued 12/11/08 Transition Relief- Written Plan Requirement- 2009 Calendar Year Not a Free “Push Back” of Date Written Plan is Required By, Since………..

7. 403(b) Program www.irs.gov/ep 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

8. 403(b) Program www.irs.gov/ep What are “Best Efforts” for 2009 Corrections? Employee Plans Compliance Resolution System (EPCRS) – Rev. Proc. 2008-50 - Section 6 –General Correction Principals –Main Theme = Restoration of Benefits

9. 403(b) Program www.irs.gov/ep The Written Plan – Essential Elements Eligibility (Non-Discrimination Rules) Benefits Dollar Limitations Available Investments Time & Form of Distributions

10. 403(b) Program www.irs.gov/ep Loans Hardship Distributions Automatic Enrollment After Tax Roth Accounts The Written Plan – Optional Elements

11. 403(b) Program www.irs.gov/ep 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

12. 403(b) Program www.irs.gov/ep 2009 403(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 - 2009 Calendar Year Only

13. 403(b) Program www.irs.gov/ep Announcement 2009-34 Opinion Letter & Prototype Programs –Draft Revenue Procedure –Draft Sample Plan Language –Request for Comments- June 2009 Next – Determination Letter Program, and…………. 2009-34

14. 403(b) Program www.irs.gov/ep Retroactive Remedial Amendments For Years After 2009 403(b) EPCRS Modifications 2009-34 Announcement 2009-34

15. 403(b) Program www.irs.gov/ep Most Common 403(b) Errors Universal Availability Excess Deferrals- Ordering Rules, Post Severance Sick & Vacation Hardship Distributions- Self Certify Loan Limits- Multiple Vendors

16. 403(b) Program www.irs.gov/ep 403(b) Hardship Distb. Safe Harbor Medical Expense Purchase Principle Residence Post Secondary Education Prevent Eviction Funeral Expenses Repair of Principle Residence

17. 403(b) Program www.irs.gov/ep 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

18. 403(b) Program www.irs.gov/ep Unforeseeable Emergency Sudden or Unexpected Illness or Accident Loss of Property Due to Casualty Extraordinary & Unforeseeable Circumstance Beyond Participant’s Control

19. 403(b) Program www.irs.gov/ep Unforeseeable Emergency cont. Severe Financial Hardship-Illness or Accident –Spouse –Beneficiary –Dependent

20. 403(b) Program www.irs.gov/ep Unforeseeable Emergency cont. Prevent Imminent Foreclosure or Eviction Medical Expense to Include Non- Refundable Deductible Funeral Expenses

21. 403(b) Program www.irs.gov/ep Retirement & Savings Initiatives Automatic Enrollment –Rev. Rul. 2009-30- Demonstration of Automatic Contribution Increases –Notice 2009-65- Sample language Sponsors Can Adopt

22. 403(b) Program www.irs.gov/ep 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

23. 403(b) Program www.irs.gov/ep Retirement & Savings Initiatives continued Save Unused Vacation or Similar Leave –Rev. Rul. 2009-31- Annual Contributions As Employer Contribution As Elective Deferral –Rev. Rul. 2009-32- Similar Contributions At Termination

24. 403(b) Program www.irs.gov/ep What’s New Resources Ask Bob Architect!

25. 403(b) Program www.irs.gov/ep How Can I Find Out More?

26. 403(b) Program www.irs.gov/ep Ya’ll Come Back Now