What happens if the 403(b) Plan fails to comply with the IRS regulations?
Non-compliance with these new rules may result in tax consequences or other risks for the employee, penalties assessed against the district, or plan disqualification. Which providers will be available to receive contributions as of 1/1/09? The District selected the Vermont State 403(b) Investment Program as our exclusive provider as of 1/1/09. This Program is overseen by the Vermont State Teachers Retirement System and is being administered by Great-West Retirement Services. Why was the Vermont State 403(b) Investment Program selected as the sole provider for SBSD? The State Treasurers Office recognized the need for School Districts to comply with the changing IRS regulations and prepared legislation to implement a 403(b) plan. This plan was approved in May and goes into place on January 1, 2009. As the exclusive provider of our 403(b) Plan, The Vermont State 403(b) Program was able to meet the requirements of our Plan and provide the necessary services to ensure IRS Code compliance. I
