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Scottyd

403(b) Regs Will Be Delayed

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I have it on good authority (Source at the IRS) that the 403(b) proposed regs that were supposed to be released and finalized tomorrow (June 30th) will be delayed till the fall. In addition, the effective date of the regs will be delayed by at least a year as well. When the proposed regulations become finalized they won't be effective until January 1st, 2008 (they were due to become effective January 1st, 2007).

 

It appears the hold up is an issue between the IRS and Department of Labor that might subject non-government non-profit voluntary only plans to ERISA. The IRS apparently doesn't want this to happen and is working with DOL to ensure this doesn't happen. Governmental plans will still not be subject to ERISA.

 

In addition, it seems that there will not be any significant changes (from the proposed regs) in the final regulations as they relate to governmental 403(b) plans.

 

I'll keep you posted as to further developments, but it looks like the proposed regs won't become final until either before or shortly after the elections.

 

ScottyD

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It looks like Scottyd believes that the voluntary 403(b) accounts of educators who work in public school districts will not have to conform to the proposed regulations.

How strong is that belief?

There has been a significant amount of attention generated from public school officials, employees, and 403(b) providers aimed at preparing for the regulations. It would be helpful to get a better understanding of this.

 

 

I have it on good authority (Source at the IRS) that the 403(b) proposed regs that were supposed to be released and finalized tomorrow (June 30th) will be delayed till the fall. In addition, the effective date of the regs will be delayed by at least a year as well. When the proposed regulations become finalized they won't be effective until January 1st, 2008 (they were due to become effective January 1st, 2007).

 

It appears the hold up is an issue between the IRS and Department of Labor that might subject non-government non-profit voluntary only plans to ERISA. The IRS apparently doesn't want this to happen and is working with DOL to ensure this doesn't happen. Governmental plans will still not be subject to ERISA.

 

In addition, it seems that there will not be any significant changes (from the proposed regs) in the final regulations as they relate to governmental 403(b) plans.

 

I'll keep you posted as to further developments, but it looks like the proposed regs won't become final until either before or shortly after the elections.

 

ScottyD

 

 

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I have it on good authority (Source at the IRS) that the 403(b) proposed regs that were supposed to be released and finalized tomorrow (June 30th) will be delayed till the fall. In addition, the effective date of the regs will be delayed by at least a year as well. When the proposed regulations become finalized they won't be effective until January 1st, 2008 (they were due to become effective January 1st, 2007).

 

It appears the hold up is an issue between the IRS and Department of Labor that might subject non-government non-profit voluntary only plans to ERISA. The IRS apparently doesn't want this to happen and is working with DOL to ensure this doesn't happen. Governmental plans will still not be subject to ERISA.

 

In addition, it seems that there will not be any significant changes (from the proposed regs) in the final regulations as they relate to governmental 403(b) plans.

 

I'll keep you posted as to further developments, but it looks like the proposed regs won't become final until either before or shortly after the elections.

 

ScottyD

 

 

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Hi Phil,

 

I would encourage you to re-read my post as I did not say anything of the sort. Public School Districts WILL have to conform, I said there are probably going to be very few changes to the proposed regs in the final.

 

The delay is because of charitbale voluntary only plans possibly being subject to ERISA.

 

Public School Districts will have to comply with the new regs.

 

ScottyD

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Guest Sierra

A

It looks like Scottyd believes that the voluntary 403(b) accounts of educators who work in public school districts will not have to conform to the proposed regulations.

How strong is that belief?

There has been a significant amount of attention generated from public school officials, employees, and 403(b) providers aimed at preparing for the regulations. It would be helpful to get a better understanding of this.

 

 

I have it on good authority (Source at the IRS) that the 403(b) proposed regs that were supposed to be released and finalized tomorrow (June 30th) will be delayed till the fall. In addition, the effective date of the regs will be delayed by at least a year as well. When the proposed regulations become finalized they won't be effective until January 1st, 2008 (they were due to become effective January 1st, 2007).

 

It appears the hold up is an issue between the IRS and Department of Labor that might subject non-government non-profit voluntary only plans to ERISA. The IRS apparently doesn't want this to happen and is working with DOL to ensure this doesn't happen. Governmental plans will still not be subject to ERISA.

 

In addition, it seems that there will not be any significant changes (from the proposed regs) in the final regulations as they relate to governmental 403(b) plans.

 

I'll keep you posted as to further developments, but it looks like the proposed regs won't become final until either before or shortly after the elections.

 

ScottyD

 

 

Phil:

 

The Proposed Regs of any code section are usually adopted as the Final Regs with any variations or changes being minor.

 

Joel

Edited by Sierra

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Scotty,

I thought that your reference to governmental plans included public schools and that they might be excluded from the regulations. I have seen some comments to the regulations that maintain public schools should not be included.

Phil

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