403(b) Plan Sponsor Responsibilities

According to the National Tax Sheltered Accounts Association's (NTSAA's) 2010 403(b) Compliance Resolution Summit Report, 403(b) plan sponsors should review fees charged by the plan's various service providers and clarify their own roles and responsibilities and those of the TPA, financial advisor, and/or common remitter associated with the plan.

 

According to the Report, when reviewing service provider fees, "...invoices should include clear descriptions of services, including identifiers, and clarity of fees charged...This solution is especially important if the fees are withdrawn from a participant's account or otherwise assessed to participants."

 

Identifying who is responsible for which aspects of the 403(b) plan is important to help the plan sponsor ensure their own compliance; the engagement of a service provider does not provide relief from ultimate responsibility for the plan's compliance. "In the eyes of the Internal Revenue Service, the sponsor retains responsibilities even if it has engaged another party to perform certain compliance functions."

 

Click here to read the entire article at PlanSponsor.com.

 

Please contact us with questions about administering a 403(b) plan.