403(b) FAQs Revised by Sungard

Sungard, a leading financial systems software company, has revised its FAQs related to 403(b) plan terminations after recent conversations with a representative of the IRS National office. According to Sungard, "The IRS clarified that in some circumstances the investment product may not provide the employer with sufficient legal control to effect a plan termination...Prior to the issuance of the final 403(b) regulations, Code 403(b) did not provide for plan termination as a distributable event...One of the more significant changes in the new 403(b) regulations was the inclusion of a provision which treats plan termination as a distributable event."

 

Full article with questions and answers regarding several of the more important issues related to 403(b) plan termination.