As 2008 draws to a close, those working with plan officials of schools and with tax-exempt entities that have 403(b) plans will want to be sure their clients are in compliance with another set of rules-those from the Internal Revenue Service. These new rules state-among other things-that all plans, including non-ERISA plans, adopt a single statement that describes their key components.

"What the IRS has said is that there needs to be one or more pieces of paper that describe to employees what this 403(b) arrangement is all about," explains Bruce Ashton, another attorney with Reish, Luftman Reicher & Cohen. In the 403(b) community, this can be a true challenge because there are usually multiple agreements in force at any one time, often with various annuity providers, which often market directly to participants and issue their own plan descriptions.

Arrangements for 403(b)s must comply with the 2007 regulations beginning January 1, 2009. Model plan language can be downloaded from the IRS's Web site at www.irs.gov/pub/irs-drop/rp-07-71.pdf.

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