The IRS is consistently trying to equate 403b plans with 401k plans that we are mostly aware of. They have a plan in mind, which they have released during the 403b summit that was held in Florida.
The Summit was in fact opened by an IRS Tax law specialist, who said that the IRS is debating the issue of a new procedure related to draft revenue. This would mean a significant step in the development of 403b plan regulations. It is estimated that these regulations will be released by the first quarter of 2010.
This date will be a milestone for the 403b plans, as on this date the 403b plan that will be moving towards a new epoch.
According to Mr. Architect, the spokesperson who opened the summit in Florida, the IRS has already released the following:
• A draft set of procedures which describes how the agency intends to progress the new 403b plan.
• A sample of the 403b plan language that will support the projected model.
• A call for comments from the public, regarding the model 403b plan they propose. All comments should be received until the first of June 2009.
Mr. Architect also predicts that the models or prototypes will be coming from retailers, who predict that they will have about 30 plans running on the new 403b model. When this model will be approved, then the plan sponsors, who will be adopting the plan, will be able to sign an agreement, which would lay out the ways in which they will adopt the plan provisions set out in the prototype, to make the new plan work more efficiently.
Finally Mr. Architect concluded by saying that the urges plan sponsors and plan advisers to meet up, thus maximizing the relief provided by the IRS for the transition period, which would be December 2009.
Reference; http://www.planadviser.com/compliance/article.php/4116
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