Products June 7, 2018

Tax Reform, Fiduciary Rule Impact 403(b) and 457(b) Plans

The National Tax-Deferred Savings Association updates its reference guide ‘The Source’ to reflect last year’s tax reform and the DOL fiduciary rule derailment.

Reported by

John Manganaro

This week, the National Tax-Deferred Savings Association (NTSA) released an updated edition of its widely used reference guide for advisers working with nonprofit and governmental retirement plans, known as “The Source: 403(b) and 457(b) Plans.”

According to the NTSA, the changes to the guide reflect the impact of tax reform and the fight over the now-defunct Department of Labor (DOL) fiduciary rule.

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“The Source” is authored by two subject matter experts, Ellie Lowder, a tax-exempt and governmental plan consultant with TSA Training & Consulting Services, and Susan Diehl, president of PenServ Plan Services Inc. and chair of the NTSA Communications Committee.

The newly updated seventh edition features information on the ways that the Tax Cuts and Jobs Act affects 403(b) and 457(b) plans. It also discusses the current status of the DOL fiduciary rule, as well as the recently proposed best interest regulations from the Securities and Exchange Commission (SEC). The Source further includes information on new hardship withdrawal rules, as well as a comprehensive outline of the market.

NTSA Executive Director Brent Neese adds that the reference guide covers “all the technical, compliance, administrative and marketing aspects of 403(b) and 457(b) markets.”

According to the NTSA, also covered are audit tips based on recent Internal Revenue Service (IRS) audits; Employee Retirement Income Security Act (ERISA) 403(b) compliance concerns and testing; guidance on how to maintain a non-ERISA 403(b) plan and how to pair it with other defined contribution (DC) plans; updated versions of numerous checklists and sample forms; rollover/portability charts; insights on how to select a third-party administrator (TPA); and a sample administrative ppendix that can be used to compare vendors and other third parties.

“The Source: 403(b) and 457(b) Plans” is available to NTSA members at a discount. To find out more about purchasing the guide as a nonmember, contact Elizabeth Duda at eduda@usaretirement.org.