Repeat after us...Be calm. Be cool. Relax. We're here to make your transition to the new 403(b) regs an easier job!
- Specialized experience in 403(b) and 457 plans for more than 30 years
- Great American Plan Administrators, Inc., our third party administrator,* has more than 150 years of cumulative management team experience in Non-ERISA 403(b) and 457 plan administration
- Proud to be American owned
- Superior financial ratings
- Represented in thousands of schools nationwide
We Have Answers To Your Questions
Updates and Advertisements Archive
NEW! FEATURE QUESTION
What should I do now? Is model plan language available now?
Do not rush to adopt a plan document. The plan document does not need to be in place until January 1, 2009 and the IRS has now provided model plan language for public schools. (See the resource link below to access the model.) It will be helpful to use this language in the preparation of any plan document. As you work towards preparing a plan document, do your homework. Review the requirements of your 403(b) program, and be ready to communicate with those who are eligible to participate in your program. Review current 403(b) materials, as they may need updates based on the requirements of the final regulations. Such materials might include employee handbooks, 403(b) contracts, administrative procedures, service agreements and collective bargaining agreements.
|
 top
What if we adopted a plan document before the final regulations and IRS model plan language were published?
Any plan document implemented before final regulations and the IRS model plan language were published may actually cause more trouble as it may create rules that are inconsistent with the final regulations, generate unnecessary compliance problems, counteract the benefit of the transition rules, and fail to obtain the protection of the IRS model plan. If for some reason you chose to adopt a plan document prior to the finalization of regulations and publication of the IRS model plan document, we strongly encourage you to consult with experienced tax counsel. New regulations state that if a plan fails to satisfy the nondiscrimination and written plan document rules, all contracts under that plan will be disqualified and ineligible for tax-deferral. The IRS has now published model plan language for public schools, and there are advantages to basing your plan document on this model plan language. (See the resource link below to access the model.)
top
How do Information-Sharing Agreements (ISA) affect transfers now?
Generally, information-sharing will be required as a condition for the 403(b) provider to receive contributions under the plan. In addition, they will be needed to allow exchanges and transfers (formerly known as 90-24 Transfers), as well as rollovers. If an ISA is not signed, the contract will be disqualified.
As background, an ISA is an agreement between your district and the 403(b) contract provider to share information needed to administer the 403(b) contract. Generally, this is information concerning the employee’s employment and 403(b) contract(s), and other qualified employer plans. It must provide for the sharing of information needed to determine whether a severance from employment has occurred, whether hardship withdrawal rules have been satisfied and whether a loan meets applicable requirements.
|
top
Will you still accept an exchange, transfer or rollover? What are the differences?
We will accept exchanges, transfers and rollovers but only to a contract under your 403(b) plan if we have an active payroll slot or a signed ISA with your district.
- Contact Exchange (formerly know as a 90-24 Transfer)is an exchange of one 403(b) contract for another 403(b) contract where both contracts are maintained under your 403(b) plan.
- Plan-to-Plan Transfer (also formerly known as a 90-24 Transfer) is a transfer from a 403(b) contract under your 403(b) plan to a 403(b) contract under another employer’s 403(b) plan or, from a 403(b) contract under another employer’s 403(b) plan to a 403(b) contract under your 403(b) plan.
- Rollover is a contribution to a 403(b) contract under your plan of an eligible rollover distribution from another 403(b) contract, a state teacher’s retirement fund or other qualified retirement plan, or an IRA. In order to have an eligible rollover distribution, the distribution restrictions of the other 403(b) contract or the state teacher’s retirement fund, or other qualified retirement plan must have been satisfied.
top
Avoid the rush! How a third-party administrator (TPA) can help lighten your workload…
Doing your homework, signing appropriate documents, and establishing services with a TPA before the 2007-2008 school year ends will put you ahead and at ease!
As an employer, you will have to monitor or arrange for monitoring of exchanges, transfers, rollovers, hardship withdrawals and loans. The services of a TPA can alleviate the worry and extra work that will come with managing all this and staying compliant. This will become more important for you to consider as January 1, 2009 draws closer.
For more information, contact our subsidiary, Great American Plan AdministratorsSM, Inc. at (800)695.1474, email AdministrationSolutions@gafri.com or visit www.gaplandata.com.
|
top
Can I have my third-party administrator (TPA) be in charge of signing the ISAs on our behalf?
Yes, that is one of many services, in addition to common remitting, that a TPA may provide. For more information, contact our subsidiary, Great American Plan AdministratorsSM, Inc. at (800)695.1474, visit www.gaplandata.com or email AdministrationSolutions@gafri.com.
top
How will I know what to do from here?
You are welcome to check this web page frequently for updates, links to necessary forms and material, further information about our educational webinars, and regularly updated Q&A. Alternatively, contact us with your preferred method for receiving updates and we will communicate with you via e-mail or fax over upcoming months to make your transition easier.
|
top
|
Make Your Job Easier!
Let Great American Financial Resources, Inc. be your retirement planning partner. Contact us for more information.
Partners
Providing us with expert guidance and advice is Davis & Harman LLP, based in Washington, D.C. Founded in 1985, they have built a strong reputation as experts with government entities in Washington and our industry partners. Davis & Harman LLP is providing consultative services regarding the new 403(b) regulations. Together, we presented webinars in July and August 2007. If missed or you would like to refer back, we invite you to view or listen in using the above links. They will help guide you from the basics of the regulations to steps for transition to implementation. |
This information is not intended or written to be used as legal or tax advice. As a taxpayer, you cannot use it for the purpose of avoiding penalties that may be imposed under the tax laws. You should seek advice on legal or tax questions based on your particular circumstances from an independent attorney or tax advisor.
*In certain situations, common remitting services are provided by subsidiary Great American Advisors, Inc. DBA GALIC Disbursing Company. Great American Advisors, Inc. is a registered broker-dealer and Member NASD, located at 525 Vine Street, Cincinnati, OH 45202. |
