Tag Archives: 403(b)

IRS issues guidance on terminating 403(b) plans

The IRS has issued a new ruling, providing guidance to eligible tax-exempt organizations, public schools, and churches on terminating and distributing assets from certain 403(b) tax-sheltered annuity plans. The ruling, which was issued in February, provides four examples illustrating how a 403(b) retirement plan funded in different ways may be terminated and explains when the terminating plan’s distributions are taxable to participants. For more on this, read the Client Action Bulletin.