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Final Regulations
Information for Healthcare and Nonprofit Organizations
Universal Availability Notices
Under the Universal Availability rule*, the IRS mandates that if an Employer permits one employee to defer salary into a 403(b) plan, the Employer must extend this offer to all employees of the organization. The regulations further require that at least once a year the Employer inform employees that they are eligible to participate in the 403(b) plan, the period of time during which this election may be made and any other conditions. If employees are not made aware that they are eligible, the 403(b) plan could violate "universal availability" and potentially be disqualified. Below, ING has provided specimen notifications to assist Employer compliance.
*Internal Revenue Code Section 1.403(b)-5(b).
Sample Universal Availability Notice:
Sample Universal Availability Notice in Spanish:
Healthcare and Not For Profit 403(b) Sample Letters and Sample Information Sharing Agreement (ISA)
Specimen communications that can be used by Employers with their 403(b) plan Investment Providers and Employees about the contract exchanges/transfers (formerly known as 90-24) changes.
Specimen Letter: Employer To Provider Requesting Information Sharing Agreement (ISA) (doc 28kb)
- RM or Rep. can provide this specimen letter to the Employer
- Employer can consider this specimen for use when attempting to obtain an Information Sharing Agreement from another provider
- If this letter is provided to the Employer, the sample Information Sharing Agreement described below should be attached
Specimen Information Sharing Agreement - 403(b)(1) Plans Only (doc 35kb)
- Employer can consider this specimen ISA for use with another provider
- If this is provided to the Employer, the letter described above must also be provided
Specimen Letter: Employer To Inform Employees Of New Contract Exchange/Transfer (Formerly Known As 90-24) Procedure (doc 28kb) and Specimen Letter: Employer Official To Inform Employees Of Approved Providers (doc 26kb)
- RM or Rep can provide these specimen letters to the Employer
- Employer can consider the first specimen letter for use in describing to Employees the expected contract exchange procedure
- Employer can consider the second specimen letter for use in informing the Employees of the contact exchange approved provider list
Contact us to request that an ING representative get in touch with you to provide you with more information about the final regulations.
These materials are not intended to be used to avoid tax penalties, and were prepared to support the promotion or marketing of the matter addressed in this document. The taxpayer should seek advice from an independent tax advisor.
Insurance products, annuities, and retirement plan funding options issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company, One Orange Way, Windsor, CT 06095-4774. Annuities issued by ReliaStar Life Insurance Company, 20 Washington Avenue South, Minneapolis, MN 55401. Securities offered through ING Financial Advisers, LLC (member SIPC), and other broker-dealers with which it has selling agreements. These companies are members of the ING family of companies. Insurance obligations are the responsibility of each individual company. Products and services may not be available in all states.
C08-0805-017
1040704
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