MEA Financial Services
403(b) Plan Manager Service offered to help school districts meet new IRS regulations
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MEA Financial Services stands ready to help school districts comply with the new IRS regulations and program requirements for 403(b) retirement plans.
“The new regulations clearly establish the employer (school districts) as the sponsor and administrator of the 403(b) plan,” said attorney Kristi Cook, a nationally recognized expert on 403(b) plans.
Cook, who explained the IRS regulations to more than 100 public school business office employees at a workshop sponsored by MEA Financial Services in November, said the demands of compliance to the IRS regulations will require significantly more time and attention by school districts.
“You (school districts) will be responsible for developing the plan, following the terms of the plan and complying with the IRS regulations,” said Cook, a longtime consultant to MEA Financial Services.
School district 403(b) plan administrators will be required to oversee all aspects of compliance, which will require increased time and attention in monitoring employees’ contributions, exchanges, transfers, program eligibility and disbursement tax reporting.
Districts face an IRS deadline of Jan. 1, 2009, to implement their 403(b) plans.
“This is a new burden for school districts,” MEA Financial Services Executive Director Paul H. Gonzalez said. “Many MEA members have 403(b) retirement plans, and Financial Services is prepared to partner with school districts to develop and implement their plans.”
As a third-party administrator, the MEA Financial Services 403(b) Plan Manager Service will provide districts with oversight and processing functions necessary to meet the IRS regulations.
“Our goal is to assist school districts in meeting their full compliance requirements now and in the future,” Gonzalez said.
Enrollment in the 403(b) Plan Manager Service is open for school districts that want to be fully prepared. To learn more, call MEA Financial Services tollfree at 800/292-1950, contact your local MEA Financial Services representative, or go to www.meafs.com for more information.