Our blog of May 26 on "Distributed Custodial Accounts" generated a number of comments, which require a bit of a "follow-on." Ellie Lowder, one of the grand dames of the 403(b) world, agreed with my assessment. She mentioned that she had discussions with the IRS on this point. Staff just couldn’t see how distributions of
May 2009
The Case For “Distributed Custodial Accounts” From Terminated 403(b) Plans
By Robert Toth on
Posted in 403(b), Lifetime Income
What Happened
One of the biggest disappointments arising from the issuance of the 403(b) regs has been the inability of employers to effectively terminate their plans. At first, the IRS caused quite a favorable stir when it announced that the regs would specifically classify the termination of a 403(b) plan as a distributable event, and…
Green Book Further Outlines Automatic IRA Similarity to 403(b)
By Robert Toth on
Posted in 403(b), Automatic Workplace Pension
The Green Book, published May 11 by the Treasury Department, contains further details on Obama’s workplace pensions first described in his budget proposals (on which we blogged in March). See pages 7-9 of the Treasury report for details.
It really does create a new scheme of individual pensions, much akin to the 403(b) arrangements…
ERISA and Mom
By Robert Toth on
Posted in General Comment
ERISA really did create some fundamental changes that has broad personal affect. This reposting of a blog I wrote last year provides a good Mother’s Day reminder of the importance of the work we do:
ERISA wonks such as ourselves tend to get lost in the press of details which seem to flow non-stop …