Important Update 9/11/2006

Important Update to 403(b) Regulations
On Tuesday August 29, 2006, the Internal Revenue Service announced that the general effective date for the final regulations under section 403(b) (including the related controlled group regulations under section 414(c)) will be extended to at least January 1, 2008. The IRS stated that the effective date is being extended "in order to provide employers, employees, insurance carriers, and mutual funds involved in section 403(b) arrangements a reasonable advance period before the regulations go into effect." Review the proposed 403(b) regulations at the IRS website.

Important Update 6/28/2006

News on the Pending 403(b) Regulation
Throughout the past year, you have received many updates on the pending 403(b) regulations. You may have heard of a tentative June 30, 2006 release date for these regulations. Great American Plan Administrators wanted to provide you with the latest information communicated at the Cincinnati Employee Benefits Conference, held on June 15-16, 2006.

During a conference presentation, Marty Pippins, manager of employee plan, technical guidance and quality assurance at the Internal Revenue Service, stated that the IRS regulations are starting to move through the clearance process. The regulations will be published within the next couple of months, and then will require further work on the language for model documents. Although a final decision is yet to be made, the IRS is currently considering a later effective date.

Great American Plan Administrators remains committed to keeping you informed about the pending regulations. GA Plan will be there to help you transition when the regulations are released.

Important Update 3/28/2005

Important Update to 403(b) Regulations
A copy of the final 403(b) regulations can be expected in April or early May, and definitely by the end of June. Although we are aware of the topics the Treasury Department has focused on in the proposed regulations, it is premature to speculate about what the final regulations will be. We will contact our plan administration groups with a summary of the final regulations. In addition, a summary will be posted here in the news section.

Important Update 1/6/2005

Fact vs. Fiction Regarding Proposed 403(b) Regulations

Fiction:  Your school or non-profit organization needs to adopt a 403(b) plan document effective January 1, 2006.

Fact:  The IRS has delayed the final version of the 403(b) regulations until January 1, 2007. Adopting a plan document now may disqualify you from any grandfathering rules in the final 403(b) regulations and may cause additional expense if the plan document must be amended to comply with final regulations.

Fiction:  You need to act now.

Fact:  You should plan now. Review the proposed 403(b) regulations. Final regulations will probably closely resemble the proposed regulations. Take some time to collect and review information regarding your existing 403(b) plan.

When the 403(b) regulations become final, GA Plan Administrators will assist you in understanding the new requirements and making necessary changes to your plan.

Proposed 403(b) Regulations

For the first time in more than 40 years, the IRS and Treasury Department have released proposed regulations regarding 403(b) plans. These proposed regulations focus primarily on the administration of loans, hardship withdrawals, and transfer of funds. The regulations would require a plan document for 403(b) plans and require employer involvement in any transfer of funds. There will also be more restrictive guidelines for transfers. Read more information about these proposed regulations.

The proposed regulations were expected to be finalized by the end of 2005. However, because of Hurricane Katrina and emergency Administrative and Congressional matters, the regulations are now expected to be finalized in the first or second quarter of 2006, with a projected effective date of January 1, 2007. We will provide updates on the GA Plan Administrators Web site as they become available.