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403(b) PLAN CHECKLIST403(b) PLAN CHECKLIST
This Checklist isn't a complete description of all For Business Owner’s Use
plan requirements, and shouldn't be used as a (DO NOT SEND THIS WORKSHEET TO THE IRS)
substitute for a complete plan review.
Every year it's important that you review the requirements for operating your 403(b) retirement plan. Use this check-
list to help you keep your plan in compliance with many of the important rules. For additional information (including
examples) on how to find, fix and avoid each mistake, click on "(More)." See www.irs.gov/retirement and click on
"Types of Retirement Plans" for Fix-It Guides and other resources for 403(b) and other plan types.
1. Is your organization eligible to Yes No 6. If an employee makes “15 years of Yes No
sponsor a 403(b) plan? ■ ■ service catch-up” contributions, does ■ ■
A 403(b) plan may only be established by the employee have 15 years of full-time
public educational institutions and IRC Section 501(c)(3) service with the same employer?
organizations. Even if this requirement is met, a calculation must still be
(More) made to determine the level of available catch-up.
(More)
2. Has your organization adopted a Yes No
written 403(b) plan? ■ ■ 7. Are elective deferrals, including any Yes No
403(b) plan sponsors were required to have catch-up and Roth contributions, within ■ ■
adopted a written plan by December 31, 2009. the limits of the tax law?
(More) Failure to limit deferrals to the legal limit may result in
additional taxes and penalties to the employee and employer.
3. Are the plan operations based on Yes No (More)
the plan document terms? ■ ■
Failure to monitor the operation of the plan 8. If your 403(b) plan offers a 5-year Yes No
may lead to a failure to follow the terms of the written plan. post severance provision, are amounts ■ ■
(More) contributed through a non-elective
method?
4. Have all the organization's Yes No Amounts contributed to a 403(b) plan that an employee had
employees been given the ■ ■ an option of receiving in cash are considered elective
deferrals and aren't eligible for the 5-year provision.
opportunity to make a salary deferral
to the 403(b) plan? (More)
Universal availability requires all employees be given the
opportunity to make salary deferrals unless the plan 9. Are you and your 403(b) vendors Yes No
specifically excludes a permitted category of employees. enforcing participant loan repayments ■ ■
"Part-time" employees aren't a permitted category that may and limiting aggregate loan amounts?
be excluded, but employees who normally work fewer than If not, the loan may be deemed a taxable distribution and
20 hours per week are. reported as income to the participant.
(More) (More)
5. Are total contributions limited to Yes No 10. Are you and your 403(b) vendors Yes No
comply with tax law? ■ ■ requiring evidence that hardship ■ ■
Total employee and employer contribution distributions meet the plan hardship
made to any plan participant can't exceed the lesser of definitions and requirements?
$55,000 (for 2018) or 100% of includible compensation. Hardship distributions must meet the requirements of the
(More) income tax regulations, the terms of the individual annuity
contract/custodial account, and starting in 2009, the written
plan document terms.
(More)
If you answered “No” to any of the above questions, you may have a mistake in the operation of your
403(b) plan. This list is only a guide to a more compliant plan, so answering “Yes" to each question may not mean your
plan is 100% compliant. Many mistakes can be corrected easily, without penalty and without notifying the IRS.
■ contact your tax advisor ■ www.irs.gov/retirement ■ call the IRS at 877-829-5500
Publication 4546 (Rev. 7-2018) Catalog Number 48817P Department of the Treasury Internal Revenue Service www.irs.gov
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