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NTSA Unveils ‘Best Practices for 403(b) and 457(b) Plans’

The National Tax-Deferred Savings Association (NTSA) and the American Retirement Association are pleased to announce the publication of Best Practices for 403(b) and 457(b) Plans.

The manual is designed to provide employers, consultants, distributors, product providers and TPAs with the information necessary to properly understand their obligations so communications can be clear and concise, and fulfillment of required tasks can be focused toward a common goal. It provides practical ideas and solutions in response to NTSA Summit attendees’ message articulating that education, communication and standardization were key to fulfilling their responsibilities.

Best Practices for 403(b) and 457(b) Plans offers readers clarity and assistance in identifying and discussing marketplace issues, and recommends best practices to simplify administration of non-ERISA 403(b) plans and processing of post-contributory transactions that occur in those plans. It also includes a glossary, checklists, additional educational information and forms.

Among the matters the manual addresses are:

  • distributions from 403(b) plans

  • rollovers

  • loans

  • hardship withdrawals

  • exchanges

  • plan-to-plan transfers

  • issues related to deselected providers

  • orphan accounts

Best Practices for 403(b) and 457(b) Plans also suggests best practices for employers, product providers and TPAs that simplify processing of post-contributory transactions that occur primarily in governmental 457(b) plans, including:

  • distributions

  • rollovers

  • loans

  • unforeseeable emergency withdrawals

  • plan transfers

  • issues related to multiple providers

And while the manual is mainly focused on governmental 457(b) plans, when appropriate it also describes their differences with tax-exempt 457(b) plans.

Best Practices for 403(b) and 457(b) Plans also offers the expertise and wisdom of its editors, Susan D. Diehl and Ellie A. Lowder, whose distinguished careers, knowledge and experience greatly enhance the book’s value as a resource. Diehl is President of PenServ Plan Services, Inc, currently serves as chair of the NTSA Professional Education Committee and has served as head of NTSA’s Government Affairs Committee. Ellie Lowder is a Consultant with TSA Consulting & Training and long shared her insights and expertise through NTSA columns and forums.

NTSA Member Access

Best Practices for 403(b) and 457(b) Plans is available in the ARA Marketplace; for more information, click here.