403(b) Plans and You - Revocation of revenue ruling 90-24

On October 23, Dan McGee of Tax Deferred Services led a lively discussion about the changes taking place in 403(b) plans because of the revocation of revenue ruling 90-24. The revocation will require that all transfers be made to financial institutions with which the sponsor has set up "sharing agreements." Transfers to financial institutions with which sharing agreements have not been established will trigger early redemption penalties and taxes.

Dan recommends a four-step process to prepare for the 90-24 revocation:
1. Notify employees
2. Request sharing agreements from financial institutions
3. Alter the salary reduction agreement to state information about sharing agreements
4. Update your plan document