Products April 10, 2008

Principal Touts New Tool for 403b Plans

April 9, 2008 (PLANSPONSOR.com) - The Principal Financial Group is rolling out a new tool that walks nonprofit employers and their financial professionals through the decisionmaking process.
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Using model scenarios, the tool outlines the actions needed for three 403(b) plan structures.   According to a press release, the new interactive tool helps plan sponsors and financial professionals understand the new regulations with plain-language explanations, identify the structure of their 403(b) plan by reviewing criteria for three model plans, and learn what steps they need to take for their model.  

“Sponsors now have to think about their 403(b) plans in a whole new light,” said Aaron Friedman, national non-profit practice leader, The Principal. “The new rules require that 403(b) plans be run more like 401(k) plans. That’s a major change in and of itself.”

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According to the announcement, the new interactive tool helps plan sponsors and financial professionals:

  • Understand the new regulations with plain-language explanations
  • Identify the structure of their 403(b) plan by reviewing criteria for three model plans
  • Learn what steps they need to take for their model
  • Fulfill their compliance obligations and meet IRS deadlines

The tool is available at www.principal.com/403btool

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