The guide provides detailed information on handling 10 kinds of errors.
For example, suppose an employer has a 403(b) but failed to follow the terms of the written plan. The guide suggests that the way to identify the mistake is to compare the written plan to the way it is being operated. The guide suggests that a plan administrator or sponsor consider the following points in examining whether the plan operation conforms to the written plan:
- if the plan or plan vendors allow for loans or hardships, the written 403(b) plan must provide for those programs in addition to explaining their administration;
- if the plan or its vendors allow for catch-up contributions, the written 403(b) plan must allow for them;
- any other optional provisions that the plan uses must be included in the written plan; and
- plan benefits must be computed properly and provided to plan participants as the written plan terms specify.
1. adopt plan amendments that match the 403(b) plan to its prior operation; or
2. correct plan operation so that it matches the 403(b) written plan terms.
And to avoid the problem altogether, the guide suggests that a plan administrator or sponsor convey any changes made to the written plan or the operation of the plan to the plan’s service providers.
The guide also provides an overview concerning 403(b) plans, and a discussion of the Employee Plans Compliance Resolution System, a means the IRS provides for filers to correct mistakes and avoid jeopardizing the plan’s qualified status.
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