Would complying with the 403(b) regulations be easier if we switched to a single investment provider for our 403(b) plan?
Moving from a multiple-provider to a single-provider plan does not necessarily reduce a plan sponsor’s administrative responsibilities. Employees may not be required to transfer assets from investment providers no longer authorized by your plan. This means that compliance responsibilities potentially continue for account values held at formerly approved providers.
Note, too:
- Several states currently require multiple providers. Check your state’s requirements first.
- Single-provider arrangements may significantly restrict your employees’ retirement planning opportunities.
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