What You Need To Know About the New Federal Regulations

403(b) Retirement Plans

What You Need to Know About the New Federal Regulations  

What New Regulations Mean for You

 

403(b) plans offer important pretax retirement savings plans for a range of non-profit organizations. As of January 1, 2009, new federal rules requiring more administrative oversight are in place. It's vital to develop systems and procedures allowing you to meet these new regulations.

 

New 403(b) Plan Requirements Include:

 

• A Written Plan Document
• Employee Retirement Income Security Act (ERISA) guidelines for not-for-profit entity sponsored 403(b) plans – except churches, government agencies
• Yearly Form 5500 Filing for Large and Small Plans
• Annual Audit of Large Plans

 

 

Your Role in Fulfilling Guideline Requirements

 

Much more administrative responsibility is now being placed upon the sponsors of 403(b) plans. This means a great deal more direct involvement with the plan is needed on your part to ensure compliance. This includes details of your written plan document, complete with financial information and fee disclosures, which need to be gathered and updated. Form 5500 has to be filed by July 31 st each year. And, if your organization falls under ERISA, you'll be required to have your 403(b) plan financial statements audited, as well.

 

The Importance of Your Audit

 

Your audit will be a major factor in helping you manage the contributions, investments and distribution processes of your 403(b) plans successfully, and in helping you file complete, accurate annual reports and returns each year. The American Institute of Certified Public Accountant's (AICPA) recommends using an accounting firm with experience in the employee benefit plan arena, which can provide you with the high quality audit you need. This may be your most important step in carrying out the legal responsibilities of these new regulations.

 

Samet 403(b) Expertise

As one of Massachusetts top accounting firms, Samet's 403(b) division can help you understand and fulfill the complex requirements now placed upon you. Our strong expertise, developed through education and superb client service, allows us to help you navigate these new regulations while developing the systems that will help ensure your successful compliance with these new procedures. Our team of expert accountants, lead by Jay Kessler, will provide you with a strong depth of knowledge and skill in this specialized accounting practice. And, we'll work with you every step of the way.

 

Jay Kessler, Partner at Samet, is a member of AICPA where he serves on the Employee Benefits Tax Technical Resource Panel of 10 national experts. Kessler is also a member of AICPA's Employee Benefit Plan Audit Quality Center and the Mass. Society of CPA's. A graduate of the University of Massachusetts at Amherst, Kessler has an expertise in auditing 403 (b) plans.