Getting comfortable — and compliant

By Kevin Kidwell, vice president, national tax-exempt sales, OneAmerica

If your organization has a 403(b) retirement plan, then you may have already received — or should be receiving — a notice from your plan provider regarding a new Internal Revenue Service (IRS) document requirement.

For the first time, the IRS has pre-approved prototype plan documents for 403(b) retirement plans, typically sponsored by 501(c)(3) organizations.

The plan restatement requirement is happening now, not because of the recent tax reform legislation, but rather is a long-overdue response to many years of lobbying by retirement plan sponsors and service providers.

We think this is a good thing.

The IRS’ goal is simple — to get a certified, model blueprint similar to what protects 401(k) plans and has been available to 401(k) plans for decades.

It doesn’t mean if you have a 403(b) plan that your plan is changing or was poorly planned; it just means there will be guardrails.

There are a variety of ways that providers (or a third party) will engage with sponsors and service providers to make them aware of the IRS request.

While completing the request, this is also a great time for the organization to review and re-evaluate whether your plan is accomplishing what it was designed to do; and whether the objectives of your plan matches your mission and aligns with your values. Is there a better way to structure employer contributions to increase participation? Are you operating the plan as it is written within the plan document?  Is the plan optimized to meet the desired outcomes while managing budgetary realities? And, if your plan doesn’t look right, maybe it is because your mission has changed, so does the plan reflect those changes?

At Indianapolis-based OneAmerica®, an organization that can trace its roots back to 1877, we’ve been helping organizations with their tax-exempt retirement plans since 1964. We believe a retirement plan should do more than help someone retire – it can help organizations recruit, retain and reward employees.

In Kevin Kidwell’s role as vice president of national tax-exempt sales, he works to provide ideas, knowledge, information – both technical and practical – in an effort to facilitate improved plan and participant outcomes. Since joining OneAmerica in 1988, Kevin has held various positions within the Retirement Services division. Beginning in 2000, his exclusive focus has been on healthcare and tax-exempt organizations.

What can we answer for you?

More: IRS’ FAQ section:

OneAmerica® is the marketing name for the companies of OneAmerica.

Products issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company. Administrative and recordkeeping services provided by McCready and Keene, Inc. or OneAmerica Retirement Services LLC, companies of OneAmerica which are not broker/dealers or investment advisors.

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