Employers that allow employees to contribute to 403(b) plans and
arrangements need to adopt a plan document by December 31, 2009 if
they have not already done so. In adopting a plan document,
employers that have a voluntary 403(b) plan which the employer
intends to be exempt from ERISA should review the plan document and
their practices to confirm the 403(b) plan is not subject to
ERISA.
Approaching Deadline
The final regulations under Section 403(b) of the Code,
published in July 2007, required all 403(b) plans to have a plan
document in place by January 1, 2009. See 26 C.F.R. 1.403(b)-3(b).
When the enormity of that requirement became apparent, the IRS
published Notice 2009-3, which extended the deadline to adopt a
plan document for 403(b) plans to December 31, 2009. Employers
should contact the retirement provider they work with to ensure
that their plan will comply with this plan document requirement.
Failure to comply may result in past and current
