The final IRS 403(b) regulations introduced a number of new requirements for plan sponsors, the most significant of which clearly designates the plan sponsor as ultimately accountable for the plan’s proper administration. To effectively administrate their organization’s retirement plan, sponsors need to gather information from their plan’s providers and examine and implement procedures for routinely acquiring plan information.
Information sharing requires retirement plan service providers to provide the necessary historical participant information, specifically regarding transactions, loans and hardship distributions, to the plan sponsor (or, in some instances, a third-party designated by the plan sponsor) to ensure compliance with IRS regulations pertaining to the administration of the plan.
