Communique -- July 2016

In this issue
  >>  Use current date for payroll to avoid delays
  >>  Employer resources available
  >>  Automatic enrollment in 403(b) plans
Use current date for payroll to avoid delays

If we receive a payroll roster created on our website through yourPLAN ACCESS with a future date on it, we cannot apply the contributions to the employees’ accounts until that day—even if we have the funds.

For example, during June the payroll rosters are created for June 15, June 30, July 15, July 31, August 15, and August 31. A check or ACH is then sent to our bank for the total of all those payrolls. Our system will not be able to apply those funds until the actual date listed on the submitted payroll.

If you would like to create multiple payrolls and submit them all at once so the funds are applied immediately to the accounts, simply use the current date for those payrolls when you enter the information in our system. This ensures that we can put all the contributions into the accounts as soon as the funds arrive.

Employer resources available

Over the years, Internal Revenue Service (IRS) regulations have increasingly placed additional responsibility on employers that impact how you administer your 403(b) plan. Requirements of the regulations include:

  • Monitoring of asset exchanges 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 to assist you with the development of your 403(b) plan. These are available on the 403(b) Plan Compliance Services page at no cost to you.

These documents were developed based on the IRS 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.

Automatic enrollment in 403(b) plans

Many workers are looking for an easier way to get started in their workplace retirement plans. In fact, according to a Prudential study, 74% of workers prefer automatic enrollment in their workplace retirement savings plans.

Varying investment choices and paperwork can be overwhelming obstacles, often preventing participation in offered retirement plans. Automatic enrollment makes it easy for employees to begin saving for their future right away by skipping the complicated decision making that often prevents them from taking action. Click on this link to review our automatic enrollment brochure.

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