PLANSPONSOR - October 2017 - 31

2017 PLANSPONSOR 403(b)/457 Buyer's Guide
EMERGING
FRENZY
FROM
THE
403(b) plan providers and sponsors move forward
T
he 403(b) plan marketplace had been sent into a tailspin. The year was 2007, and the Internal
Revenue Service (IRS) had passed a series of regulations that would upend how 403(b) plan
sponsors ran their retirement plans.
Whereas many of these sponsors managed their plans loosely or took a laissez-faire role, the
new rules demanded involvement. The IRS now required documentation showing that each participant's
total loans, hardship withdrawals and contributions did not exceed limitations across his
account balance among all providers. The regulations for the first time also required, for all but
certain religious organizations, a written plan document to be in place to guide plan administration
and operations.
Before this, the marketplace had been mostly unregulated. Some sponsors had multiple plans,
many had multiple providers, and a number had hundreds of investment options due to the predominance
of individual annuities-which typically had higher costs than other mutual fund investment
options. No plan document had been needed if a plan was non-ERISA (Employee Retirement
Income Security Act)-those plans required little or no employer involvement.
Kevin Kidwell, vice president of national tax exempt sales at OneAmerica in Indianapolis,
compares the time following the passage of the new regulations to the stages of grief. " We went
through denial, anger, bargaining, paralysis-instead of depression-then acceptance. We had to
work through all of that, " he says.
Some recordkeepers and providers left the 403(b) market-for example, those with small client
bases or without the systems necessary to support administration, says Aaron Friedman, national
nonprofit practice leader at Principal Financial Group in Des Moines, Iowa.
Art by Jon Han
PLANSPONSOR.com October 2017 31

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PLANSPONSOR - October 2017

Table of Contents for the Digital Edition of PLANSPONSOR - October 2017

Moving Money
403(b) / 457 Buyer's Guide
Best Practices for the IPS
The Middle Ground
Questions, Answered
Navigating RMDs
PLANSPONSOR - October 2017 - Cover1
PLANSPONSOR - October 2017 - Cover2
PLANSPONSOR - October 2017 - 1
PLANSPONSOR - October 2017 - 2
PLANSPONSOR - October 2017 - 3
PLANSPONSOR - October 2017 - 4
PLANSPONSOR - October 2017 - 5
PLANSPONSOR - October 2017 - 6
PLANSPONSOR - October 2017 - 7
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PLANSPONSOR - October 2017 - 17
PLANSPONSOR - October 2017 - 18
PLANSPONSOR - October 2017 - 19
PLANSPONSOR - October 2017 - 20
PLANSPONSOR - October 2017 - 21
PLANSPONSOR - October 2017 - Moving Money
PLANSPONSOR - October 2017 - 23
PLANSPONSOR - October 2017 - 24
PLANSPONSOR - October 2017 - 25
PLANSPONSOR - October 2017 - 26
PLANSPONSOR - October 2017 - 27
PLANSPONSOR - October 2017 - 28
PLANSPONSOR - October 2017 - 29
PLANSPONSOR - October 2017 - 403(b) / 457 Buyer's Guide
PLANSPONSOR - October 2017 - 31
PLANSPONSOR - October 2017 - 32
PLANSPONSOR - October 2017 - 33
PLANSPONSOR - October 2017 - 34
PLANSPONSOR - October 2017 - 35
PLANSPONSOR - October 2017 - 36
PLANSPONSOR - October 2017 - 37
PLANSPONSOR - October 2017 - Best Practices for the IPS
PLANSPONSOR - October 2017 - 39
PLANSPONSOR - October 2017 - The Middle Ground
PLANSPONSOR - October 2017 - 41
PLANSPONSOR - October 2017 - Questions, Answered
PLANSPONSOR - October 2017 - 43
PLANSPONSOR - October 2017 - Navigating RMDs
PLANSPONSOR - October 2017 - 45
PLANSPONSOR - October 2017 - 46
PLANSPONSOR - October 2017 - 47
PLANSPONSOR - October 2017 - 48
PLANSPONSOR - October 2017 - Cover3
PLANSPONSOR - October 2017 - Cover4
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