[18482]
January 31, 2005
TO: PENSION COMMITTEE No. 3-05
PENSION OPERATIONS ADVISORY COMMITTEE No. 3-05
RE: DRAFT INSTITUTE COMMENT LETTER ON PROPOSED 403(B) REGULATIONS
Attached is a draft of the Institute’s comment letter on the IRS proposed regulations
under section 403(b) of the Code.1
The letter recommends that the IRS take affirmative steps to assist employers in
complying with the proposed plan document requirement by providing a delayed effective
date, a model form similar to the Form 5305-SEP, and, along with the Department of Labor,
detailed guidance as to the effect of the new rules on ERISA coverage. The letter also urges the
retention of Revenue Ruling 90-24, which allows 403(b) participants greater flexibility to
transfer among different funding vehicles than would the proposed regulations.2 Finally, the
Institute’s comments support the proposed ability of employers to freeze or terminate their
403(b) plans, and request additional options for employers.
Please contact me with any comments or questions concerning the draft letter by
Monday, February 7, by telephone at 202/371-5432, by fax at 202/326-5841, or by email at
kireland@ici.org.
Kathy D. Ireland
Senior Associate Counsel
Attachment (in .pdf format)
1 See Memorandum to Pension Committee No. 55-04 and Pension Operations Advisory Committee No. 79-04, dated
November 18, 2004.
2 The final comment letter will include a copy of the ruling request submitted by the Institute and others that resulted
in the issuance of Revenue Ruling 90-24.