For the first time in 43 years, the landscape of §403(b) plans
has changed. The long-awaited Finalized §403(b) Regulations have
been issued effective 1/1/2009. The Legend Group has designed
this website as a tool for employers and our advisors to sort
through the pertinent §403(b) information.
Navigating the §403(b) Regs Website
Universal Availability Notice
Each eligible employee must receive an annual written notice regarding the
availability of your §403(b) plan. Under the Final Treasury Regulations, if you elect to
exclude any employees in your §403(b) plan, you may exclude
only students, non-resident
aliens and employees who are working less than 20 hours per week/1000 hours per year.
If an employee is working sufficient hours to exceed this threshold, written notice of
the §403(b) plan availability should be provided to him/her. Universal Availability
must be documented adequately in case of an IRS audit as you must be able to show how
all eligible employees received the annual written notice each year. An employer must
be able to verify that all contracts, bargaining agreements, employee benefit handbooks, etc.
reflect the same information as found in the §403(b) Plan Document.
Most importantly, it is the Employer’s responsibility to ensure that the Universal
Availability requirement is met.
ALL eligible employees need to be notified in writing
at least once per calendar year.
In an effort to assist our employers, we are supplying you with the
"Universal Availability Notice."
We at the Legend Group suggest that you supply this Notice, reproduced on District letterhead,
to all new and eligible employees each year and upon employment for new employees.
We also suggest that you keep record of how and when the Notices are delivered to
District employees in the event of an IRS audit and the need to prove such delivery.
If you have any questions or need additional assistance, please contact
the §403(b) Administration Team at (888) 883-6710 or
Solutions For Employers
The Pension & Retirement Plan experts at The
Legend Group stand ready to guide you through the transition
period and beyond. We will continue to keep you informed as to
your expanded responsibilities as an employer and, more
importantly, to provide solutions to assist you in complying
with the IRS requirements. Learn more
about how Legend can help you:
Solutions for Employees
As a proactive vendor, Legend recognizes that
your retirement account is an important component of your
overall financial well-being, and we are working diligently to
ensure that we remain an approved vendor with your employer.
§403(b) accountholders with vendors who fail
to agree to supply the employer with compliance support and
information may find that they must move their accounts to
approved vendors. In addition, transfers or exchanges of assets
to vendors with whom your employer does not have an exchange
agreement could subject you to a tax liability.
Learn more about what the §403(b) Final Regulations may mean
Solutions for §403(b) Sales Professionals
Is your broker/dealer prepared to support
your §403(b) business? While many currently approved vendors may
not be able to communicate electronically with employers, Legend
has refined the technological capabilities to accomplish all of
the administrative and compliance tasks mandated by the final
Best Practices Manual
The NTSAA 2009 Compliance Problem Resolution
Summit Task Force has promised the attendees of the 2009 Summit
a copy (in PDF format) of the
Best Practices Manual. This manual is the work product of
that Summit and we are pleased to provide you with the link to
the PDF. Please use the content which includes sample grids,
worksheets, letters and other tools, for use by the §403(b)
industry to adopt the best practices recommended there.
Unquestionably, that action will contribute greatly to the
smooth operation of §403(b) plans as employers continue their
efforts to comply with the final §403(b) regulations and
The facilitators at the 2010 Summit have
already begun planning to develop the recommended tools and best
practices discussed during the 2010 Summit and will keep the
industry apprised of the availability of the 2nd Edition of the
Best Practices Manual, which will introduce new topics and
recommend best practices from both conferences.
Thank you for your participation in the 2009
Summit. We sincerely hope that the Manual will aid you in your
endeavor to assist the sponsors of §403(b) plans.
Click here to download the Best Practices Manual
Funds only available when FTC is custodian and Pershing, LLC is the clearing firm.
Pershing, LLC is not an affiliate of Legend Equities Corporation or Legend Advisory Corporation.
All products are not available in all states.
All investment options are subject to employer approval.