Recent Changes to 403(b) Plans

A 403(b) plan is a retirement plan offered by schools, hospitals, churches, charities, and certain other tax-exempt organizations.  403(b) plans works very similarly to 401(k) plans and on November 16, 2007, the Employee Benefits Security Administration, the IRS, and the Pension Benefit Guaranty Corporation published revisions to the Form 5500 annual return/report for plan year 2009.

How do these revisions affect your non-profit org?

These revisions include making the reporting rules for those 403(b) plans on par with 401(k) plans.  This means that beginning in 2009, 403(b) plan will be subject to the same reporting and audit requirements that currently exist for section 401(k) plans including the completion of the Form 5500 as a small or large pension plan and for large 403(b) plans includes the engagement of an independent qualified public accountant to conduct an independent audit of the plan.

Do you have a 403(b) plan? Be prepared to file.