Fidelity Releases 403(b) Document Generator

April 29, 2008 ( - Fidelity Investments has introduced 403(b) Quick, a Web-based plan document tool designed to help tax-exempt employers generate recordkeeping agreements and plan documents to help them comply with new 403(b) regulations.

A Fidelity news release said the 403(b) Quick tool is simple enough to allow employers to establish a standard recordkeeping agreement with Fidelity and create a plan document in as little as 15 minutes. According to the announcement, employers answer a series of questions and enter information about the plan, including the employer’s contact information, plan information (e.g., plan type and effective dates), plan features (e.g., whether the plan offers catch-up contributions or loan and hardship withdrawals), and information on other approved investment providers offered, and the tool will generate a new recordkeeping agreement that will be mailed to the employer to sign.

The recordkeeping agreement enables Fidelity to provide 403(b) plan administration to the new plan. Once the agreement is complete, Fidelity will then send the completed plan document to the employer along with a how-to manual that takes them through the most essential provisions of the new regulations, according to the release.

“Many tax-exempt employers have expressed concern that they’re not ready to tackle the demands of the new regulations,” said John Begley, executive vice president, Fidelity Investments, in the news release. “This new plan document tool, in combination with our other tools and services, provides employers access to virtually all the resources they need to help comply with the 403(b) regulations and ensure their retirement benefits program is attractive to employees.”

The 403(b) Quick tool will be made available at no cost to employers interested in working with Fidelity.

Fidelity additionally announced it is releasing a second report on the 403(b) regulations called, “From Surviving to Thriving: Making the Most of the New 403(b) Regulations,”    that the company said will be available May 2. The report provides employers with an understanding of the basic requirements of the legislation to aid compliance and offers employers factors to consider when thinking strategically about 403(b) plan design.

According to a recent survey of Fidelity clients, almost 30% of employers have not yet created a written 403(b) plan document – a requirement under the new regulations – and many offer 403(b) plans from multiple providers, increasing the amount of administrative work it will take to comply with the new regulations (See  403(b) Summit: New Form 5500 Regs Mean “Scary” 2009 Plan Year for 403(b) Sponsors ).

All of Fidelity’s 403(b) tools and resources are or will be available online