Get Moving Now!
The wide gap between the regulatory requirements for 401(k) and 403(b) plans is about to disappear. It’s important to take effective measures now to prevent regulators from cutting into your wallet. And, you don’t want to ignore the IRS. The new requirements issued July 24, 2007 apply to ALL 403(b) plans. Fortunately, the extra requirements, while burdensome, are not insurmountable.
The new Schedule C will help you take a good, hard look at plan fees. The plan sponsor is obligated to ensure plan fees are reasonable. The Department of Labor (DOL) takes this obligation seriously and brought action against NFL player Michael Vick this year for allegedly violating his fiduciary duties as a plan trustee. The DOL alleges that Vick made prohibited transfers (approximately $1.35 million) from a retirement plan to pay for criminal restitution related to his dog fighting conviction.