The IRS has at last published regulations under Internal
Revenue Code Section 403(b). These are the defined contribution
retirement savings plans for employees of tax-exempt charities,
public schools and churches. In recent years, 403(b) plans have
been designed and administered to look more and more like
401(k) retirement savings plans for taxable entities. This new
set of regulations takes a number of significant steps in that
direction.
HIGHLIGHTS
Written Plan Document Required
Although 403(b) plans sponsored by governmental employers
and churches are exempt from most ERISA Title I requirements,
the final regulations require all tax-qualified 403(b) plans to
operate according to a written plan document including certain
key terms. In addition to the governmental and church plans,
this would include formerly exempt employee deferral-only
arrangements. The plan document may incorporate by
