It has now been a dozen years since the IRS issued Revenue Procedure 2007-71, which was written in response to the logistical difficulties which arose from the mammoth changes imposed by the 2007 changes to the 403(b) regulation. The value of this Rev Proc endures; and is particularly helpful when plans restate their 403(b) plan docs and need to do things like name their vendors; have Information Sharing Agreements; and try to make plan redesign decisions.
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Rev. Proc. 2007-71
The 403(b) Regs Unintended Consequence: The Freezing of Loans and Hardships in a Time of Crisis
By Robert Toth on
Posted in 403(b)
One of the most unfortunate and unintended consequences of the new 403(b) regulations is the freezing of hardship distributions and loans from contracts of "deselected" vendors, at a time when these funds are needed the most.
What at first seemed like an almost esoteric, academic discussion of what to do with contracts which were issued…