Over the years, IRS regulations have increasingly placed additional responsibility on employers and impact how you administer your 403(b) plan. Requirements of the regulations include:
- Monitoring of asset exchanges that are now limited to employer-approved providers.
- Selecting and approving providers for your plan.
- Adopting a written plan document describing plan provisions and procedures.
- Delegating and establishing reporting requirements for compliance with contributions to and distributions from approved providers.
- Complying with the new requirements for timing of remittance of salary reduction contributions.
WEA Member Benefits is committed to helping our school district with all aspects of 403(b) compliance. We have sample employee notices, vendor letters, and agreements. We cover topics ranging from best practices for audits to a sample Universal Availability Notice. These are available on the 403(b) Plan Compliance Services page at no cost. Our sample documents are provided to assist you with the development of your 403(b) plan.
These documents were developed based on the Internal Revenue Service model plan language, but they may not satisfy all the needs of your specific 403(b) plan. They are not intended to constitute legal or tax advice. We suggest you consult your legal and tax advisor(s) prior to adopting any documents for your 403(b) plan.
Some school districts have a plan document that requires mandatory cash-out of an employee’s 403(b) account if the balance is $1,000 or less and if the employee is no longer employed with the district. Due to the mandatory cash-out rules, we must be made aware of when an employee separates from service. In addition, if an employee returns to work, we must be notified to prevent the mandatory cash-out.
If you run into this situation we request that you e-mail the employee’s name, last date of employment, and school district to firstname.lastname@example.org. Please provide us with this information as soon as possible. If you have any questions, please call 1-800-279-4030.
Trust Advantage, a voluntary benefit program through Member Benefits, provides Wisconsin public school districts an opportunity to enhance their employee benefits without impacting their bottom line. Trust Advantage offers public school employees access to tools and resources to help them become financially secure. This makes it easier to attract and retain valuable employees and generates goodwill at a time when benefits are being reduced.
The Trust Advantage program offers:
- Additional benefits for staff—including administrators, custodians, and support staff—with no impact on the district's benefits budget.
- Financial education tailored to Wisconsin public school employees.
- The convenience and affordability of purchasing personal insurance and savings products using payroll deduction.
- Access for family members to most Member Benefit programs.
- Personal consultations and unbiased assistance to help employees become financially secure.
- Communication tailored to individual school districts encouraging participation in existing individual benefit programs.
If you are interested in learning more about Trust Advantage and how it can benefit your district, e-mail us at email@example.com and the appropriate Worksite Benefits Consultant will contact you. Please include your name, district, and contact information.