This Handbook provides an overview of federal laws affecting the elderly and retirement issues. Information discussed includes age discrimination in employment, elder abuse & exploitation, power of attorney & guardianship, Social Security and other retirement and pension plans, Medicare, and much more in 22 pages of materials.
Erisa Rules For 403b In Michigan
Category:
State:
Multi-State
Control #:
US-001HB
Format:
Word;
PDF;
Rich Text
Instant download
Description
Free preview
Form popularity
FAQ
When is a 403(b) plan subject to ERISA? All 403(b) plans are subject to Title I of ERISA unless an exemption applies.
An eligible employer that has established a 403(b) plan must operate and maintain the plan by taking certain actions to ensure it continues to provide tax-deferred benefits to plan participants.
Generally, you don't report contributions to your 403(b) account (except Roth contributions) on your tax return. Your employer will report contributions on your 2023 Form W-2.
All 403(b) plans are subject to Title I of ERISA unless an exemption applies.
Millions of teachers and employees of tax-exempt organizations invest in 403(b) retirement plans. The Department of Labor (DOL), Securities and Exchange Commission (SEC), and Internal Revenue Service (IRS) take steps to oversee some 403(b) plans or their investment options, or both.
403(b) Plans and Federal Pension Law Nearly all private sector pension plans are governed by the Employee Retirement Income Security Act of 1974 (ERISA; P.L. 93-406), which is enforced by the Department of the Treasury, the Department of Labor (DOL), and the Pension Benefit Guaranty Corporation (PBGC).
403(b) plans that are subject to ERISA must comply with DOL regulations, which may include obtaining an employee identification number (EIN) for the plan. Governmental, non-electing church and other 403(b) plans that meet the safe-harbor requirements under the DOL regulations are not subject to ERISA.
Basic ERISA compliance requires employers provide notice to participants about plan information, their rights under the plan, and how the plan is funded. This includes ensuring plans comply with ERISA's minimum standards, recordkeeping, annual filing and reporting, and fiduciary compliance.
One key exception is the ADP test that normally applies to salary deferrals. As a trade-off to the universal availability requirement (described above), 403(b) plans are not required to pass the ADP test. This allows any highly compensated employees to maximize their deferrals.
Five-year post severance contributions are employer contributions made to a 403(b) plan after the employee's severance from employment. In general, post severance contributions must meet the following: Employer contributions may be made for an employee for up to 5 years after the employee's employment ends.
More info
For guidance on what may cause a 403(b) plan to be subject to ERISA, please consult the Department of Labor's rules. Complete the Enrollment Form.This plan allows eligible employees to: Set aside money towards their retirement. What compensation is used to determine my Plan benefits? Variable annuities made up 18 percent of large ERISA 403(b) plan assets, while fixed annuities represented 14 percent. These are self-directed plans, in that the employee decides how the funds in the account are invested amongst several options. However, there is not strong support in the case law for this approach. De LaSalle Common Meaning Approach. Plans that do not fall under Title I of ERISA do not have to comply with ERISA requirements relating to participation standards, minimum coverage, vesting,.