Fidelity Announces Tools to Help Sponsors Comply with 403(b) Regs

May 4, 2006 ( - Fidelity Investments has announced it is developing a suite of plan tools and services to help 403(b) plan sponsors meet fiduciary and administrative responsibilities resulting from new 403(b) plan regulations.

According to the announcement, the offering consists of:

  • Plan Document Template – Enables plan sponsors to incorporate what is required to create a written 403(b) plan in compliance with new IRS regulations, including sample plan language for both ERISA and non-ERISA plans.
  • Sample RFP for Facilitating the Vendor Selection Process – Provides access to the same RFP documents that consultants use when evaluating prospects for a 403(b) plan.
  • Recordkeeping and Administrative Support – Technology can play a key role in helping plan sponsors monitor 403(b) plans to ensure compliance and reduce the perceived administrative burden sponsors cite as a top concern. For example, Plan Sponsor Webstation, an online benefits tool, continually monitors participants’ contributions and alerts the sponsor if a participant is approaching their deferral limit.
  • Communication Materials – Fidelity representatives will work in partnership with individual plan sponsors to create communication materials that will educate employees about the changes, their options, and key dates.

In addition, Fidelity is offering a checklist of things plan sponsors can do to prepare for the 403(b) changes.  For more information go to .

The IRS hopes to issue finalized 403(b) regulations by this summer with an effective date of January 1, 2007 (See Report: Permanent 403(b) Regs Could be out by Summer ).