Statute
Internal Revenue Code Section 403(b)
21 published works
Employment Law Worldview
SECURE Act 2.0 Mandatory Automatic Enrollment Requirements for New Retirement Plans Guidance Released (US)
One of the hallmarks of the SECURE 2.0 Act of 2022 (SECURE Act 2.0) legislation was to increase participation in retirement plans. On January 10, 2025, the Treasury Department and…
Benefits Law Update
IRS Provides Helpful Answers Regarding Long-Term Part-Time Employees in 403(b) Plans
In November 2023, the IRS issued proposed regulations addressing the SECURE 2.0 long-term part-time (LTPT) employee eligibility requirements applicable to 401(k) plans knowing that further guidance would be needed to…
Employee Benefits Blog
IRS Expands Determination Letter Program to Include Individually-Designed 403(b) Plans
In Revenue Procedure 2022-40, the IRS recently expanded the determination letter program to allow applications by individually-designed 403(b) plans. This expansion will allow 403(b) plan sponsors to request a determination…
Benefits Law Advisor
2023 Cost of Living Adjustments for Retirement Plans
The Internal Revenue Service recently announced its cost-of-living adjustments applicable to dollar limitations on benefits and contributions for retirement plans generally effective for Tax Year 2023 (see IRS Notice 2022-55).…
Employee Benefits Blog
IRS Updates Qualified Plan Correction Procedures
The IRS recently issued Revenue Procedure 2021-30, which updates the correction program under the Employee Plans Compliance Resolution System (EPCRS). EPCRS permits plan sponsors to correct failures in the form…
The Business of Benefits
A Technical Analysis of How “Small Amount” Cash-Outs Under 403(b) Plans Work
By Robert Toth
The minute differences between 403(b) plans and 401(k) plans are often inconvenient, at best, and sometimes they produce serious conundrums in plan administration which can be difficult to resolve. Prominent…
Benefits Law Update
December 31 Sunset of Safe Harbor Correction Method for Certain Elective Deferral Failures
A special IRS-approved correction method available for elective deferral failures in 401(k) and 403(b) plans with automatic contribution features will sunset on December 31, 2020, meaning it will not be…
Benefits & Compensation Blog
IRS Eases Ability of Employers to Reduce or Suspend Safe Harbor Matching and Nonelective Contributions
The Internal Revenue Service (IRS) issued Notice 2020-52 on June 29, 2020, making it temporarily easier for employers to suspend or reduce matching contributions and nonelective contributions to safe harbor…
Not For Profit/Exempt Organizations Blog
Deadline Approaching for 403(b) Sponsors to Review Plan Documents for Compliance
Section 403(b) plans must be maintained pursuant to a written plan document that meets detailed requirements set forth in IRS regulations. If a plan contains a defect as to form…
The Business of Benefits
A 403(b) “Pseudomorph”: The IRS’s Gradual Shift On Applying 415 Limits to 403(b) Plans
By Robert Toth
There is a little noticed change in the IRS’s recent update of Publication 571 (which is the IRS’s 403(b) technical guide). In a highlighted box on page 4 is the…