Legend Model Plan

Using the IRS’ model language from Revenue Procedure 2007-71, Legend’s Model Plan allows the employer to choose whether to exclude employees working under 20 hours or employees who are students. Legend’s Model Plan also gives the employer the choice of using an automatic enrollment feature or declining to adopt this provision. The IRS model language assumes acceptance of the following provisions: loans, hardship distributions, transfers in and out of the plan (from and to other employer’s §403(b) plans), exchanges between vendors approved by the employer, rollovers into the plan from eligible retirement plans and plan termination.

Legend Model Plan Plus

Expanding on the IRS’ model language from Revenue Procedure 2007-71, Legend’s Model Plan Plus allows the employer more flexibility and control over the features of their §403(b) plan than the Model Plan. Legend’s Model Plan Plus allows the employer to choose whether to exclude employees working under 20 hours or employees who are students and also gives the employer the choice of using an automatic enrollment feature or declining to adopt this provision. Legend modified the IRS model language to allow the employer to choose whether to include the following provisions: loans, hardship distributions, transfers in and out of the plan (from and to other employer’s §403(b) plans), exchanges between vendors approved by the employer, rollovers into the plan from eligible retirement plans and employer matching or non-elective contributions (including a vesting schedule) for up to five years after separation from service.