There is no “vesting on partial termination” for 403(b) plans, and no need to track the “20%” rule for vesting on partial terminations for a 403(b) plan. That rule simply does not apply. This his true for both ERISA and non-ERISA 403(b) plans.
As a practice note, if you have mistakenly applied that “partial termination” vesting rule to a 403(b) plan, you may have an operational error.
Continue Reading Are There “Partial Terminations” of 403(b) Plans ?
403(b) plan termination
The SECURE Act’s 403(b) Custodial Account “Distribution” Does Not Create IRAs
By Robert Toth on
Posted in 403(b), SECURE Act
The SECURE ACT introduced a concept which was not known well beyond a handful of 403(b) practitioners, that is the “distribution” of 403(b) individual custodial accounts from 403(b) plans. The lack of understanding of what this actually means has even lead one commentator in a highly respected trade organization’s technical piece to claim that this rule transforms 403(b) custodial accounts into IRAs.
Well, that is an easy one to settle: the “distributed” 403(b) custodial contract is NOT an IRA. It is simply a 403(b) contract which no longer has any relationship to a plan.
Continue Reading The SECURE Act’s 403(b) Custodial Account “Distribution” Does Not Create IRAs
WEIGH THE COST WITHOUT PAYING THE 403(B) PIPER!
By Conni Toth on
Posted in 403(b), B/D-IA Issues
Seek assistance with some very tough decisions, the comparison between 403(b) and 401(k) plans.
Continue Reading WEIGH THE COST WITHOUT PAYING THE 403(B) PIPER!