In an effort to facilitate compliance with the written plan document requirement of the 403(b) regulations, VALIC said it will seek approval of several prototype plans to address the unique needs of different 403(b) plan sponsors—including public and private education, health care, and church plans, according to a news release.
VALIC will continue to support those plans that rely on the previously approved IRS model language, as well as any individually designed plan documents that meet the requirements of the 403(b) regulations, the company said.
“Our nation’s education systems and other tax exempt employers are grappling with challenging 403(b) regulations, and it is our goal at VALIC to work closely with the IRS to secure approval of our prototype plan documents, thus ensuring the success of 403(b) plan sponsors across the country,” said Don Harris, senior vice president, National Education Markets, VALIC, in the release.
The IRS announced its proposal for the prototype program in April (see “IRS Releases Proposed 403(b) Prototype Document Program’). Determination letter reviews for the prototypes could begin as soon as the first quarter of 2010.