IRS Unveils 403(b) Guides

The new IRS offerings include:

• A Guide for Participants in a 403(b) Tax-Sheltered Annuity Plan , a 6-page document that features a discussion about contribution limits, distributions and rollovers, loan limitations and requirements for hardship withdrawals. The booklet includes a summary of 403(b) plan rules as well as a list of other relevant IRS publications.“As a 403(b) plan participant, you need to pay attention to the operation of your 403(b) tax-sheltered annuity so that you can: be compliant with the law, maximize your retirement benefits, and avoid additional taxes and penalties,” the IRS said in the booklet.
• A Guide for Sponsors to the 403(b) Tax-Sheltered Annuity Plan , a 6-page book aimed at plan sponsors. Among other items, the IRS offering includes a discussion of common sponsor mistakes such as failure to limit employee elective deferrals as well as failure to carry out a timely return of excess elective deferrals and earnings.“It is important to know the tax rules applicable to a 403(b) plan to: 1) help you comply with the tax law; and 2) help you ensure that your employees get the maximum benefit out of your 403(b) plans.”

The participant book is here .

The plan sponsor book is here .