(b)lines Ask the Experts – Why 403(b) Assets Are Generally Not Held in a Trust
“Why are 403(b) plan assets generally not held in a trust?”
Tag: 403(b) plans
Charter School Reprimanded for Late Deposit of 403(b) Deferrals
“The school has been deemed non-compliant with its contractual obligations regarding financial management as identified in the charter operating agreement,” a letter sent to school officials says.
All 403(b) Plan Sponsors Should Focus on Document Remedial Amendment Period
403(b) plan sponsors have until March 31, 2020, to adopt a pre-approved plan document and to make sure their plan has been operating in accordance with the plan terms.
NYU Claims Victory in 403(b) Plans Lawsuit
In the first university 403(b) plans case to go to trial, a federal district court found the plaintiffs have not proven that the NYU retirement plans committee acted imprudently or that the plans suffered losses as a result.
Brown University 403(b) Plans Suit Moves Forward
A federal judge denied dismissal of plaintiffs’ allegations that a prudent fiduciary would have chosen one—rather than two—recordkeepers; that a prudent fiduciary in like circumstances would have solicited competitive bids; and a claim regarding recordkeeping fees.
(b)lines Ask the Experts – Must Participants Take All Other In-Service Distributions Before a Hardship?
“Our 403(b) non-electing church plan offers safe-harbor hardship distributions. The plan also offers in-plan distributions of rollover contribution balances and after-tax contributions.
Church Plan Operating Under Rules of ERISA Has Not Elected to Be an ERISA Plan
Since the Supreme Court decision about the definition of church plan under the Employee Retirement Income Security Act, the Internal Revenue Service has issued several private letter rulings concerning entities’ church plan status, including an organization with a 403(b) plan.
(b)lines Ask the Experts – Must Plans Adopt Budget Act New Hardship Withdrawal Rules?
“I am aware from a prior Ask the Experts column that the Bipartisan Budget Act of 2018 made some changes to the hardship distribution rules?
(b)lines Ask the Experts – Direct Rollovers for 403(b) Plans Funded by 403(b)(7) Custodial Accounts
“Is a custodial account 403(b) plan under IRC 403(b)(7) an “eligible retirement plan” for purposes of the direct rollover rules? Would it matter if the custodial 403(b) were the distributing or the receiving plan?”
Recordkeepers Dedicated to Serving 403(b) Plans Are Established
Following IRS regulations for 403(b) plans passed in 2007, many vendors (recordkeepers) exited the business.
Matrix Trust Company Sued Over Asset Transfers From 403(b) Plans
Matrix is being sued for violating its fiduciary duties because it did not verify that the transfers were authorized by the participants in the 403(b) plans or permissible under the terms of the plans.
GWU Tells Court 403(b)s Cannot Be Compared to 401(k)s
In a brief supporting a motion to dismiss a case against George Washington University related to the management of its 403(b) plan, the defendants note that 403(b)s have always looked differently and were set up for a different purpose than 401(k) plans.
(b)lines Ask the Experts – How to Match When Deferrals Are Front-Loaded
“I work for a 403(b) plan sponsor, and have recently encountered a situation when a few individuals have front-loaded their elective deferrals to the 403(b) plan, so that have recently met the 402(g) limit, even though were are less than halfway through the year.
K-12 403(b) Plan Sponsors Have New Fiduciary Duties Under Conn. Law
Connecticut decided to pass the law after Connecticut teachers regretted investing in certain products without being informed of fees and other charges.
Prospect Chartercare Faces Lawsuit Over DB Plan Funding
The complaint alleges that at a certain point, the plan lost its church plan status as defined by ERISA and was required to adhere to ERISA funding rules.
(b)lines Ask the Experts – Roth Accounts and Participant Post-Retirement Benefits
“I have heard that a Roth 403(b) can actually help participants maximize their after-tax retirement benefit. If this is true, can the Experts assist me with the math as to why?”
New Claim Added to Vanderbilt University 403(b) Plan Lawsuit
The new claim is related to the defendants’ alleged failure to protect plan assets by allowing third parties to market services to participants.
Penn State Announces New Retirement Program Fee Practices
The plan to adopt a fee-leveling approach and rebate revenue sharing to participants comes as many institutions of higher learning face lawsuits challenging their 403(b) plan fees.
University of Chicago Settles 403(b) Plans Excessive Fee Suit
In addition to a monetary payment, the university has agreed to structural changes to its 403(b) plans.
Is There Any Hope for 403(b)s to Be Able to Use CITs?
These lower-cost funds are growing more popular in the 401(k) market, but are not available to most 403(b) plans.