Section 403(b) Compliance Guide for Public Education Employers

Busy school business officials will welcome guidance in the establishment or updating of 403(b) compliance programs, and this guide should help meet that need. The Economic Growth and Tax Relief Reconciliation Act of 2001 has substantially changed the rules for TSA/403(b) arrangements; thus, it is important that school business officials have a compliance guide that reflects those changes. This will help them and their staff, understand what needs to be done.

For several years, the Internal Revenue Service has been actively auditing public school districts'' the TSA/403(b) programs and has indicated that the audits will continue until IRS field examiners routinely find that employers have compliance practices and procedures in place. Thus, school business officials must actively pursue compliance initiatives. It is imperative that compliance practices and procedures are amended to reflect the substantial changes contained in the Economic Growth and Tax Relief and Reconciliation Act of 2001 and subsequent IRS guidelines. The second edition of the Section 403(b) Compliance Guide for Public Education Employers includes the new Roth 403(b), as well as all available regulatory changes as of June 30, 2005. It is designed to help busy officials and their staff update already established compliance programs, which will substantially reduce the impact of an IRS audit.