(b)lines Ask the Expert – Compliance Deadline

July 15, 2008 (PLANSPONSOR (b)lines) - A plan adviser asks: "Will the 403(b) rule changes begin January 1, 2009, for sponsors who have a plan year end other than December 31st?"

The final 403(b) regulations generally apply to “taxable years” beginning after December 31, 2008. The final regulations say that “because individuals will almost uniformly be on a calendar taxable year, these regulations will generally apply on January 1, 2009.”

As such, regardless of the plan year, the final regulations will in most cases (other than certain church 403(b)s where the authority to amend is vested in a church convention), apply as of that date.

– David Levine, Groom Law Group, Chartered

NOTE: This feature is to provide general information only, does not constitute legal advice as part of an attorney-client relationship, and cannot be used or substituted for legal or tax advice.

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