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
2011 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 for you.
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 regulations. Learn more.
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 subsequent guidance.
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
80+ mutual fund family choices are available only when FTC is the custodian and Pershing, LLC is the clearing firm. Pershing, LLC is not an affiliate of Legend Equities Corporation. All products are not available in all states. All investment options are subject to employer approval.