PLANSPONSOR - September/October 2024 - 36
PLAN BENEFITS
The Great Debate
M
any organizations eligible to
offer a 403(b) plan could as easily
offer a 401(k) plan-those
are not just for corporate employers.
401(k)s and 403(b)s have historically
each provided a significantly different
experience and set of investment options
for both plan sponsors and participants. In
recent years, though, regulatory changes
have increased the overlap between the
401(k) plans and 25% of 403(b) plans that
are subject to the Employee Retirement
Income Security Act.
" It used to be that a plan sponsor could
just sign up [for a 403(b)] and get out of the
way and let the plan vendor take care of
everything, but that's no longer the case, "
says David Ashner, an attorney with Groom
Law Group, Chartered, in Washington.
The evolution began when the Pension
Protection Act of 2006 required 403(b)
plans subject to ERISA to have a plan document
and comply with qualified plan rules.
" SECURE [Setting Every Community Up
for Retirement Enhancement Act of 2019]
and SECURE 2.0 continued the trend of
401(k)-ifying the 403(b), " Ashner says.
Among the changes under SECURE
2.0 for ERISA 403(b) plans are: provision
for participating in a multiple employer
plan or pooled employer plan; new rules for
hardship withdrawals, to align with rules
in 401(k)s; and the requirement to extend
eligibility to long-term part-time workers,
as in 401(k) plans. The law further allows
for both plans to offer de minimus, smallvalue
incentives to employees for participating
in the plan or engagement activities.
A Less Consequential Choice
" The modern 403(b) plan is very similar to
the modern 401(k), " says Michael Gorman,
an associate with Morgan Lewis in
Pittsburgh. " There aren't that many significant
differences. "
SECURE 2.0 also included a provision
that would let 403(b) plans expand the
36 PLANSPONSOR.COM September - October 2024
Art by Dalbert Vilarino
401(k) vs. 403(b)-which type of plan will work best?
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PLANSPONSOR - September/October 2024
Table of Contents for the Digital Edition of PLANSPONSOR - September/October 2024
insights
Rules and regulations
Participant analysis
Upfront
Calls to Action
2024 PLANSPONSOR National Conference
The Intensity of Implementation
Frontier of the New QDIAs
The Great Debate
Time for a Welfare Fiduciary Checkup
Loper Bright Reshapes The Regulatory Landscape
Managing Stress in HR
PLANSPONSOR - September/October 2024 - C1
PLANSPONSOR - September/October 2024 - FC1
PLANSPONSOR - September/October 2024 - FC2
PLANSPONSOR - September/October 2024 - C2
PLANSPONSOR - September/October 2024 - 1
PLANSPONSOR - September/October 2024 - insights
PLANSPONSOR - September/October 2024 - 3
PLANSPONSOR - September/October 2024 - Rules and regulations
PLANSPONSOR - September/October 2024 - 5
PLANSPONSOR - September/October 2024 - 6
PLANSPONSOR - September/October 2024 - Participant analysis
PLANSPONSOR - September/October 2024 - Upfront
PLANSPONSOR - September/October 2024 - 9
PLANSPONSOR - September/October 2024 - 10
PLANSPONSOR - September/October 2024 - 11
PLANSPONSOR - September/October 2024 - Calls to Action
PLANSPONSOR - September/October 2024 - 13
PLANSPONSOR - September/October 2024 - 14
PLANSPONSOR - September/October 2024 - 15
PLANSPONSOR - September/October 2024 - 2024 PLANSPONSOR National Conference
PLANSPONSOR - September/October 2024 - 17
PLANSPONSOR - September/October 2024 - 18
PLANSPONSOR - September/October 2024 - 19
PLANSPONSOR - September/October 2024 - 20
PLANSPONSOR - September/October 2024 - 21
PLANSPONSOR - September/October 2024 - 22
PLANSPONSOR - September/October 2024 - 23
PLANSPONSOR - September/October 2024 - 24
PLANSPONSOR - September/October 2024 - 25
PLANSPONSOR - September/October 2024 - The Intensity of Implementation
PLANSPONSOR - September/October 2024 - 27
PLANSPONSOR - September/October 2024 - 28
PLANSPONSOR - September/October 2024 - 29
PLANSPONSOR - September/October 2024 - 30
PLANSPONSOR - September/October 2024 - 31
PLANSPONSOR - September/October 2024 - Frontier of the New QDIAs
PLANSPONSOR - September/October 2024 - 33
PLANSPONSOR - September/October 2024 - 34
PLANSPONSOR - September/October 2024 - 35
PLANSPONSOR - September/October 2024 - The Great Debate
PLANSPONSOR - September/October 2024 - 37
PLANSPONSOR - September/October 2024 - Time for a Welfare Fiduciary Checkup
PLANSPONSOR - September/October 2024 - Loper Bright Reshapes The Regulatory Landscape
PLANSPONSOR - September/October 2024 - Managing Stress in HR
PLANSPONSOR - September/October 2024 - C3
PLANSPONSOR - September/October 2024 - C4
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