Tax-sheltered Annuity Regulations Change
The IRS has changed the regulations pertaining to tax-sheltered annuities, tax code 403(b). The new regulations go into effect on January 1, 2009 and basically shift the responsibility for administration and compliance from the worker to the employer. Each employer that allows contributions to a tax-sheltered annuity other than Concordia Retirement Savings Plan (CRSP) must have a 403(b) written plan document in place by January 1, 2009.
Failure to do so will put the tax deferred status of an employee's entire 403b savings in jeopardy. It is very important that employers pay close attention to this change. Congregations that fall into this category should seek legal advice on how to proceed.
For more information,
view the webinar made available by Concordia Plan Services.