IRS Delays 403(b) Plan Regulation Effective Date

August 30, 2006 – IRS news release IR-2006-136 announces that regulations relating 403(b) plans will not be effective before January 1, 2008. New proposed 403(b) plan regulations were issued in 2004, and are generally to be effective upon the issuance of final regulations, which was initially anticipated to be before the end of 2005. However, the IRS has not yet issued the final regulations. The effective date is delayed, according to IR-2006-136, to provide employers, employees, insurance carriers, and mutual fund companies involved in 403(b) plans a reasonable advance period before the regulations go into effect.

IR-2006-136 may be accessed as follows.
http://www.irs.gov/newsroom/article/0,,id=161446,00.html