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EdLaFave

Website To Navigate And Reform Ocps (Fl) 403B/457B Plans.

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I believe I've read that the universities are being sued because their ERISA plan fiduciaries did not request institutional class funds from the vendors. The K-12 403b is a bird of a different feather!

The IRS says a 403b account is “also known as a Tax Sheltered Annuity (TSA) plan”. And that’s even if it’s a “a custodial account, which is an account invested in mutual funds”, not “an annuity contract, which is a contract provided through an insurance company”. https://www.irs.gov/publications/p571/ch01.html

And due to its annuity heritage, a K-12 403b is a contract between the employee and the providor. The employer is not considered a “plan sponsor” as in an ERISA plan, but mostly an intermediary to collect and send the employee’s contributions to the providor. The employer does not have a true fiduciary relationship with their employees. Is congress just lazy? Or are they being paid off by the insurance industry? Or both?

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