Baden Retirement Plan Services

403(b) Plan Terminations

According to SunGard Relius, "Prior to the issuance of the new final 403(b) regulations, Code Section 403(b) did not provide for plan termination as a distributable event...For plans subject to ERISA, it forced the employer to continue complying with the reporting and disclosure requirements until all participants incurred a distributable event (e.g., termination of employment). One of the more positive aspects of the new 403(b) regulations was the inclusion of a provision which treats plan termination as a distributable event."  Details are provided in the full article in an FAQ format.