IRS Issues Publication on Section 403(b) Plans
December 12, 2013
In its recently released Publication 4483, the IRS outlines the most common mistakes made by providers of 403(b)(3) plans. These include:
- Written plan requirement. Written document(s) that describe the plan and how it works are imperative.
- Universal availability. If one employee is permitted to make elective deferrals, all employees must be allowed to make them. Certain groups of employees may be excluded, however, such as those working fewer than 20 hours per week.
- Depositing elective deferrals. Employees' contributions must be sent to plan providers as soon as is reasonable (no later than 15 days following the month of the pay date).
- Excessive elective deferrals. The general limit on elective deferrals is $17,500 in 2014. If the plan allows, employees may also make catch-up contributions related to years of service and/or if they are over age 50.
- Employer and employee contributions. The limit on total employer and employee contributions is $52,000 for 2014 ($57,500 for employees over 50).
Tax-Sheltered Annuity Plan for Sponsors also provides additional resources related to 403(b)(3) plans, employer guides, and correction programs available from IRS.
Director, Tax Policy
- Some Cash Management Changes Apply to All Institutions
- NACUBO Summarizes Regulations on Banking, Processing Relationships
- Education Funding Depends on Devil in the Details
- 2016 Intermediate Accounting and Reporting - Winter
January 25-26, 2016
- 2016 Facilities and Administrative Rates - Long Form
January 25-26, 2016
- ON-DEMAND: Understanding ED's New Cash Management Rules
- ON-DEMAND: A Financially Sustainable Approach to Innovate Academic Programs
- ON-DEMAND: Legislative Lunchcast: A 30-Minute Washington Update from NACUBO
- ON-DEMAND: Developing Your Campus Distance Learning Strategy
- ON-DEMAND: VIRTUAL: 2015 Annual Meeting
- ON-DEMAND: NACUBO Live!: CBO Speaks
- ON-DEMAND: A Just-in-Time Webcast to Explain FASB’s NFP Reporting Proposal
- ON-DEMAND: Decoding ED's Cash Management Proposal
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis