The Department of Labor launched a new Web page that focuses on compliance and reporting guidance for 403(b) retirement plans. The online page also includes a new Field Assistance Bulletin.
Retirement plans governed by Section 403(b) of the Internal Revenue Code allow employees at public schools, hospitals, churches and other nonprofit entities to save pretax dollars for retirement.
On the Web page, 403(b) plan sponsors and providers can review and download publications that offer guidance on fiduciary responsibilities, selecting an auditor and other topics addressing ERISA regulations on 403(b) plans. The Web page also points users to online sites for electronic filings and reporting, voluntary corrections and IRS resources.
In the new Field Assistance Bulletin (2010-10), regulators answered questions on annual reporting and ERISA compliance of 403(b) plans. For example, one Q&A in the Field Assistance Bulletin deals with the annual reporting of an annuity:
Question: Would an annuity contract or custodial account need to be included in the Form 5500 or Form 5500-SF annual report if the employer provides information to the 403(b) provider concerning an employee's or former employee's employment status in connection with a contract or account that otherwise meets the conditions of FAB 2009-02 for being excluded from the plan's annual report?
Answer: No. The annual reporting relief under the FAB will still be available even if the employer provides information to the 403(b) provider. Providing information, such as the contract owner's employment status, does not constitute involvement beyond that permitted under the FAB. On the other hand, where the employer must consent to, or make other discretionary decisions regarding enforcement of the employee rights under the contract, the relief under the FAB is not available. Nor is relief available if, for example, the employer must certify in advance that an employee is eligible for a distribution that is permissible under the Internal Revenue Code. Similarly, the FAB provides no relief if the employer has to approve a hardship distribution or a loan from the contract or account before the loan or distribution is made.
