June 18, 2015
The Internal Revenue Service’s Advisory Committee on Exempt Organizations and Government Entities (the TEGE ACT) recently issued its annual report, which includes a report on §403(b) plans from the Employee Plans Subcommittee. The §403(b) report includes a discussion of the current problems facing §403(b) plan sponsors, recommendations for improvements to the information that the IRS provides on its website and suggestions for further informal or formal guidance on certain topics. The suggested guidance topics include the “universal availability” coverage requirement, orphan contracts and termination of §403(b) plans. The report also provides a useful summary of the mistakes that are frequently made, and problems faced, by §403(b) plan sponsors.
The TEGE ACT is a committee of tax practitioners appointed by the Treasury Department on recommendation of the IRS Commissioner for three-year terms. It provides input to the IRS on policy issues related to employee benefit plans and other tax-exempt entities, and issues a report each year.
If you have any questions about the report, please contact your Sibson consultant or send us a note.
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