For non-ERISA plans with limited employer involvement, 403bUniversity.com includes a sample plan document and adoption agreement for your review with counsel; these documents can help you put in place the key document governing your plan. Included are PDFs of IRS Revenue Procedure 2007-71 and DOL FAB 2007-02. For plans subject to ERISA, you should already have a plan document in place. You should check with your current document provider for updates to your plan. Also on 403bUniversity.com is a checklist of key items to consider. If you desire information regarding receiving plan document services from VALIC, including services for ERISA-covered plans, church plans and governmental plans, contact us at 1-877-403(b)REG (2734).

• Sign plan document adoption agreement or amendment to your existing plan.

• Update your approved vendor list.

• Print copy of signed agreement, document and amendments if applicable and store for future reference.

• Provide a copy of the updated documents and approved vendor list to your providers of choice.

Frequently Asked Questions

Where do I get an updated copy of the plan document or updated adoption agreement?
The most recent updates to the private tax-exempt non-ERISA adoption agreement and plan document can be found on our dedicated Web site, 403bUniversity.com. 403(b) University is designed to be a single point of reference for ongoing administration of your organization’s program. For ERISA-covered plans, a document checklist is also available.

Does my document need to be reviewed or approved by the IRS? 
Currently the IRS does not review prototype 403(b) plan documents, however they may in the future. The sample plan document and adoption agreement have not been either reviewed or approved by the IRS. If you exercise this option, you will want to provide a copy of the document to your approved provider, along with a list of approved vendors and products.

How does the document handle loans and hardships and what are my responsibilities as the administrator?
The sample document is designed to maximize flexibility with these programs and to allow both the plan sponsor and the approved vendors reasonable choice and accommodation in their roles supporting the plan.

Loans and hardships may be included or excluded on a plan level (i.e., no loans or hardships under the plan; or, loans and hardships are available under all products that otherwise permit them) or in an ERISA covered plan, may be restricted to a subset of “loan or hardship” approved vendors inside the plan (i.e., only three of the five approved vendors are permitted to offer loans and hardship withdrawals, because the remaining two vendors did not agree to administer those transactions as required under the plan). The document, Service Provider Agreement and approved vendor lists are all designed to support both the plan’s election here and the vendors preferred position inside the plan. Non-ERISA plan sponsors should carefully discuss the availability of plan features, such as loans or hardships, with their legal counsel.

Will a vendor that doesn’t allow loans and hardships be excluded from the plan?
That is up to the plan sponsor. Plan sponsors have the ability, subject to any additional legal restrictions, to set reasonable compliance administrative requirements for all providers in the plan. A sponsor of an ERISA-covered plan may allow or disallow providers that don’t make loans or hardships available for administrative, operational or other reasons. Such vendors can be included in the plan together with any other population of loan or hardship approved vendors. However, limiting the availability of plan features may be considered exercise of discretion, and non-ERISA plan sponsors should discuss this issue with legal counsel.

It should be noted that there is no additional direct fee layering to participants for these services as they are delegated to providers at no cost in the Qualified Service Provider Agreement.

What changes should I make to my plan as circumstances change? Will an updated document be available?
Our dedicated Web site, 403bUniversity.com, includes ongoing document availability. Plan sponsors also have access to a self-audit checklist and compliance manual which can help with technical questions. Additionally, the 403(b) regulations resource center stands available to answer questions at 1-877-403(b)REG (2734). We offer ongoing support and guidance to plan administrators.

We encourage plan sponsors to meet with all providers in the plan at least annually to review administrative procedures and operations.