403b Answer Book Book

Chapter 1	Overview of Section 403(b) Arrangements	1
	Introduction to Section 403(b) Programs	2
	Basic Requirements	5
	Eligible Employers	9
	Eligible Employees	11
	Requirements Relating to Contributions	12
	Requirements Relating to Investments	15
	Requirements Relating to Distributions	16
Chapter 2	Section 501(c)(3) Organizations	1
	Introduction to Section 501(c)(3) Organizations	1
	Basic Requirements	3
	State Filing Requirements	12
	Maintaining 501(c)(3) Status	13
	Recordkeeping and Disclosure Requirements	18
Chapter 3	Contribution Limits	1
	Overview of Section 403(b) Contribution Limits	2
	Section 403(b)(2) Contribution Limits	4
	Includible Compensation	5
	Years of Service	8
	Prior Years' Contributions	11
	Section 415(c) Contribution Limits	13
	Special Alternative Limits	17
	Section 402(g) Contribution Limits	21
	Section 414(v) Catch-up Limit	23
	Coordination of Deferrals and Contributions	24
	Correction of Nonentitled Contributions	27
	Contributions That Exceed All Limits	36
	Overmax Contributions Under Section 403(b)(7) Custodial Accounts	36
Chapter 4	Nondiscrimination in Coverage and Benefits	1
	Overview of Nondiscrimination Requirements	2
	Application of Nondiscrimination Requirements for Different Types of Contributions	4
	Minimum Participation Rules	9
	Coverage Rules	11
	Nondiscrimination Rules	17
Chapter 5	Investments	1
	Funding 403(b) Arrangements	2
	Protecting the Safety of Investments	10
	Employer Responsibility for 403(b) Investments	12
	Protection Against Liability	18
	Making Investment Decisions	20
	Participant-Directed Investment	23
	Investment Communication Requirements	26
	Providing Investment Education and Advice	29
	Procedures for Investment Instructions	32
	Records Retention	35
	Paying Plan Administration Expenses	35
	Financial Services Modernization	36
Chapter 6	Annuities	1
	In General	1
	Insurers	6
	Types of Annuities and How They Function	7
	Regulations and Restrictions	10
	Employers	18
Chapter 7	Section 403(b)(7) Custodial Accounts	1
	Requirements	2
	Regulated Investment Companies	5
	Tax Treatment	5
	Transfer of Assets	6
	Distributions	7
Chapter 8	Application of Federal Securities Laws to Section 403(b) Arrangements	1
Chapter 9	ERISA Requirements	1
	Circumstances Under Which a 403(b) Arrangement Is Subject to ERISA	2
	Vesting	7
	Joint and Survivor Annuity Requirements	9
	Participation Requirements	10
	Death Benefit Beneficiary Designations	11
	Amendments	12
	Bonding and Plan Assets	15
	Disclosure and Reporting	17
	Compliance with Claims Procedures	24
	Assignment or Alienation	27
	Fiduciary Matters	28
Chapter 10	Distributions	1
	Requirements Governing Timing and Amount of Benefit Distributions	3
	Calculation and Distribution of Grandfathered Amounts	10
	Distributions After Death of Participant	11
	Designated Beneficiaries	15
	Minimum Distribution Incidental Benefit Requirements	17
	Taxation and Investment in the Contract	20
	Withdrawal Restrictions	24
	Hardship Distributions	26
	Death Benefits	28
	Rollovers and Transfers	28
	Tax Withholding and Reporting	42
Chapter 11	Loans, Life Insurance, and Plan Termination	1
	Loans	2
	Life Insurance	22
	Plan Termination	27
Chapter 12	Beneficiary Designations	1
	Making a Beneficiary Designation	2
	Using Trusts	7
	Family Rights That Restrain a Beneficiary Designation	8
	Charitable Gifts	10
	Common-Law Marriage	11
	Community Property	20
	Premarital Agreements	22
	Postnuptial Agreements	25
	Tenancy by the Entirety	26
	Disclaimers	28
	Government Claims	31
	Unclaimed Property	32
	Tax-Oriented Estate Planning	33
	Qualified Domestic Trusts for Noncitizens	39
	Who Can Give Advice	40
Chapter 13	Qualified Domestic Relations Orders	1
	Overview	2
	Requirements of a Qualified Domestic Relations Order	7
	Special Provisions	14
	Plan Administration Procedures	16
	Tax Treatment	25
	Bankruptcy	29
	State Courts' Purview	30
	Legal Malpractice	31
Chapter 14	Tax Aspects of Church Plans	1
	Church Retirement Income Accounts	2
	Special Definitions and Rules for 403(b) Church Plans	4
	Church Plan Status for a 403(b) Church Plan	5
	Electing (or Not Electing) ERISA Coverage	10
	Rules Applicable to Nonelecting Church Qualified Plans	11
	Failure to Qualify as a Church Plan or a Church 403(b) or 401(a) Plan	17
	ERISA Coverage of Church Plans	18
	Miscellaneous Church Plan Provisions	18
Chapter 15	Section 457 Plans	1
	Overview	2
	Eligible Plans	9
	Ineligible Plans	24
	ERISA Considerations	30
	Miscellaneous	31
Chapter 16	Mergers and Acquisitions	1
	403(b) Plan Considerations	1
	Severance Pay and 403(b) Plans	8
	457 Plan Considerations	11
Chapter 17	Designing Tax-Sheltered Annuity Plans	1
	Pre-tax Savings	2
	Impact of ERISA Coverage	5
	Thrift Savings Plans	5
	Primary Retirement Plans	12
	Supplemental Retirement Plans	14
Chapter 18	Tax-Sheltered Annuity Voluntary Correction Programs	1
	Overview of SCP	2
	Overview of the VCT Program	11
	Correction Fees and Sanctions	15
	Correction Procedures and Principles	21
	Submission Procedures and Requirements	29
	Other Considerations	34
	VCT Program Corrections	35
	Audit Guidelines	38
	403(b) Program Defects	40
Chapter 19	International Tax Treatment	1
	Selected Treaties	3
	Plan Design Considerations	4
	Governing Law	8
	Foreign Income Tax Treatment	10
	U.S. Federal Income Tax Treatment	12
	Income Tax Treaties	18
	International Rollovers	28
	Withholding on 403(b) Distributions	38
	U.S. Federal Estate Tax Treatment	58
	U.S. Expatriate Tax	60
Chapter 20	Retirement and Estate Planning for 403(b) Participants	1
	Estate Tax Treatment	2
	Gift Tax Treatment	4
	Funding Trusts with Retirement Plan Annuities	5
	Funding Charitable Gifts with Retirement Plan Annuities	10
	Spousal Rollovers	13
	Retirement Equity Act of 1984	13
Appendix A	Table for Determining Distribution Period	1
Appendix B	The Role of the Tax or Employee Benefits Professional in the 403(b) Arena	1
	Index	1