Principal Offers Guides to 403(b) Compliance

Guides from the Principal Financial Group will provide 403(b) sponsors with step-by-step actions to take over the next several months.

The guides will help 403(b) sponsors to comply with Internal Revenue Service (IRS) regulations effective January 1, 2009, the company said.

The 403(b) Compliance Guides will be available in four stages to coincide with the suggested timing for taking action, according to a press release. The first guide outlines immediate actions that plan sponsors should begin taking now, including:

  • setting up a committee,
  • identifying any contracts included in actively sponsored plans,
  • reviewing and documenting the key provision of each contract.

The first guide also provides a Contract Comparison Tool to make it easier for plan sponsors to make their reviews, the company said.

The next guides will be distributed in late July, August, and on a rolling schedule during the fourth quarter of 2008.

The Principal has provided other assistance to 403(b) sponsors including an interactive tool that outlines the action steps needed by each of type of plan design (see Principal Touts New Tool for 403b Plans), and educational materials on the 403(b) regulations (see Principal Offers 403(b) Education Program).

The first guide is available at