We can help ensure your Plan stays in compliance so you can focus on your daily job functions. Our administrative assistance includes:
Plan OperationManaging your Plan involves clear understanding of requirements, processes and administration of the Plan. AFPlanServ stands ready to guide and assist you with your Plan administration. Once you have established your Plan, you are required to maintain operational compliance with your Plan document. Your Plan must stay up to date with regulatory and legislative changes to the applicable Internal Revenue Code sections. We will provide updates for your Plan document as needed to comply with future guidance issued by the Internal Revenue Service or legislation. Our staff will also work with you on any changes in your benefits to your Plan.
Excess Contribution during the Previous Calendar Year:
If discovered after the end of the calendar year, we request the:
The Internal Revenue Service (IRS) audits every type of qualified plan. So, it's important to maintain policies and information that demonstrate compliance. Should an audit occur, AFPlanServ will provide reports of your Plan activity upon request, including:
Year-to-Date Reports:
Asset Account Balances:
The Internal Revenue Code (IRC) requires 403(b) Plans to meet Universal Availability requirements. To meet these requirements, employers must provide an eligibility notice at least annually to eligible employees. The IRC suggests that notification be sent in the same manner as other important correspondence. AFPlanServ will provide a sample notice to employers to help satisfy Universal Availability requirements.
Employers should maintain written procedures for distributing eligibility notices.
This could include:
Requirements:
All eligible employees must be provided the opportunity to enroll in the 403(b) Plan or change their contribution level at least once a year. Communication of eligibility to all employees is a main focus of Internal Revenue Service audits. We will help provide notification language annually and are available to answer any questions you may have.
The notice must include:
The Internal Revenue Service(IRS) began Plan audits in 2010. There are a number of areas that you must be aware of in order for your Plan to remain in compliance. Key areas of focus for IRS audits include:
Plan Documentation: Employers should maintain copies of their Plan documentation, including the Plan document and all amendments to the Plan from inception.
Annual Provider Review: Employers should maintain written procedures outlining the process for an annual review of each provider, which should include a review of:
Automatic Distributions of Small Account Balance: Employers should maintain written procedures outlining the process for handling automatic distributions and rollovers of accounts under $7,000 in value.
Computer Records: Employers should maintain computer records to keep track of Forms W-2, W-3, and Forms 1099, 940, and 941 and master payroll files.
Contribution Limitation Monitoring: Employers should have written procedures for monitoring the multiple contribution limits under Plans, including the regular annual limits, 3-year catch-up (457(b) Plans), 15-year catch-up (403(b) Plans), and age 50 catch-up provisions.
Corrective Procedures: Employers should have procedures on correcting excess contributions, excess deferrals, and documentation on those corrected and reported.
Counting Years of Service: Employers should have a consistent procedure for counting of years of service for permanent part-time employees (partial years), substitute teachers, temporary employees, retired rehired full-time and part-time employees, and counting the hours if the Plan excludes employees under the "20-hour rule."
Employee Deferral Procedures: Employers should maintain written procedures outlining the process for submitting employee's deferrals to the vendor or third-party administrator and how often the deferrals are submitted.
Employee Eligibility: Employers should have consistent policies to determine which employees are excluded from and eligible to participate in any retirement Plan offered by the employer.
Employee Plan Information: Employers should maintain copies of all benefit booklets and/or enrollment materials available to employees from the Plan's inception.
Forms: Employers should maintain copies of all administrative forms, including salary reduction agreements, generally for seven years.
Hardship or Unforeseeable Emergency Withdrawal Procedures: Employers, or their third-party administrators, should maintain written hardship or unforeseeable emergency distribution procedures, including records of participants who have received such distributions; copies of the applications for such distributions and if self-certification is not permitted, back-up information to verify the participant's hardship or unforeseeable emergency; copies of any form 1099-R for 403(b) Plans or form W-2 with distributions for 457(b) Plans. If vendors are involved in the approval process, the employer must maintain copies of the vendors' procedures, distribution notices and forms also.
Loans and Deemed Distribution Procedures: Employers should maintain written procedures for approving participant loans, tracking participant loans, and reporting of deemed distributions, along with copies of withholding notices and 1099-Rs.
Operational Compliance: Each employer should have procedures for monitoring Plan requirements and compliance with all Plan document provisions.
Qualified Domestic Relations Orders (QDROs): Employers should maintain written procedures outlining the process for handling Qualified Domestic Relations Orders and any administrative information associated with such distributions.
Regulatory Updates: Employers should have a procedure for staying informed on regulatory and legislative changes affecting 403(b) and 457(b) Plans.
Universal Availability: Employers should have procedures for complying with the Universal Availability rule for 403(b) Plans. This could include the process for providing Universal Availability notices and copies of the notices on lists of employees notified if mailed or emailed
The fee is $1.00 per Plan participant per month for administrative services including, but not limited to:
This fee may be paid by the district or the Plan's vendors. Participants may also be charged a fee for certain individual transactions.
If the district chooses to have the fee paid by its vendors, then any vendor that declines to pay the fee will be treated as a deselected vendor. To retain the vendor, the district must agree to pay the fee. AFPlanServ can set up split billing to accommodate such situations.
9000 Cameron Parkway
Oklahoma City, OK 73114
Business hours are Monday through Friday, 7:00am to 7:00pm CT.