The IRS in 2011 sent a Section 403(b) compliance check
questionnaire to a national sample of more than 300. The check
focuses on whether 403(b) plans comply with the rules for 403(b)
salary deferral contributions made by employees (i.e., pretax
contributions elected by employees). Although the questionnaire was
directed at higher-education organizations, most of the questions
apply to any entity that maintains a 403(b) plan.
Grant Thornton has prepared a self-compliance check to enable
you to determine whether your responses comply with the
regulations, even if your organization isn't involved in higher
education. Because the compliance check reflects IRS concerns, we
believe that entities that maintain a 403(b) plan would be
well-served to complete the self-compliance check and correct any
areas of noncompliance. If the requirements that are the subject of
the compliance check are not satisfied, the salary deferral
contributions made by employees are taxable when
