Some 403(b) plans sponsors are considering terminating their plans and/or switching to a 401(k) plan because of the new Internal Revenue Service requirements for 403(b) plans. But, sponsors need to realize that they still need to comply with the new regulations even if they terminate their plan or switch to a 401(k). According to PlanSponsor.com, "Richard Turner, VP and Deputy General Counsel, AIG Retirement, cleared up some common myths about the new 403(b) requirements for attendees at The SPARK Institute's 403(b) Plans Issues & Answers Forum in Austin, Texas...While the final regulations do add a new provision permitting plan terminations, sponsor should note they still must adopt the regulations before the plan can be terminated...Turner also noted that plan termination requires the distribution of all assets under the plan."
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