(b)Lines Information and Insights for the 403(b) community / brought to you by PLANSPONSOR.
December 27th, 2016

Failing to Start Mandatory Contributions

“We are a governmental entity with a ‘401(a) governmental defined contribution plan,’—it is not a 401(k) plan. We require that our employees contribute 3% of their salary to the 401(a) plan but recently discovered that we had failed to start mandatory contributions for one of our new employees. Does the IRS’ 2015 automatic enrollment correction guidance affect us? How would we correct this error?”Read more >

Tips for Reviewing SPDs

“We just received a draft summary plan description (SPD) for our retirement plan for review. I am new to reviewing SPDs; do the Experts have any suggestions as to how I should review? Thanks!”Read more >
Groom Law Group and Cammack Retirement Group will field your questions concerning 403(b) plans and regulations. Email rebecca.moore@strategic-i.com with Subject Ask the Experts

How Does the DOL Fiduciary Rule Impact 403(b)s?

“I have received dozens of emails in my Inbox regarding the Department of Labor’s (DOL’s) final fiduciary rule. I realize that all these emails probably means that the new rule is important, but I don’t have time to sort through them all. As an Employee Retirement Income Security Act (ERISA) retirement plan sponsor, can the Experts give me the “Cliffs notes” on the new rule and how it affects me?”Read more >

Tips for Correctly Calculating 15-Year Catch-Up

“We have a ton of individuals utilizing the 15-year catch-up election in our 403(b) plan, and for that and other reasons, it would not be practical to eliminate it immediately. Until such point that we can get rid of this provision, do the Experts have any suggestions to maximize our chances that the calculations will be performed correctly?”Read more >

Must Participant Loans Be Paid Upon Termination?

“Our recordkeeper insists that the final loan regulations require repayment of the loan upon termination of employment, but I have argued with them that this is not the case. Is the recordkeeper correct, or am I correct? The recordkeeper does not permit terminated employees to continue to pay off outstanding loans; instead, the loan is immediately due and payable upon termination of employment, and the outstanding loan amount is offset from the participant’s account balance if he/she is unable to pay off the entire loan balance immediately.This has created some difficulty for some of our terminated employees, who are unable to pay off large loan balances at once, and prefer continuation of repayments.”Read more >

Is A Financial Audit a Good Idea for a Non-ERISA Plan?

A governmental 403(b) and 457(b) plan sponsor attending the non-ERISA 403(b) Update panel at the 2016 PLANSPONSOR National Conference asked a question. “We realize we’re not subject to the annual 5500 reporting requirement, as well as the related annual audit requirement; however, our plans are quite large, and our recordkeeper opined that it might be a ‘good idea’ for us to complete a plan audit. What say the Experts?”Read more >

Changes to Consider As Plan Size Grows

“I work for a rapidly-growing nonprofit that just two years ago had a handful of employees; now, we have more than 100. We have sponsored an Employee Retirement Income Security Act (ERISA) 403(b) plan since the inception of the firm. Are there areas of plan governance to which a growing firm such as ours should pay particular attention?”Read more >

Form 5500 Filing Tips

“We are preparing to file or 2015 Form 5500s for our ERISA retirement plans? Any last-minute filing tips from the Experts?”Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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