DELAYED EFFECTIVE DATE OF PROPOSED REGULATIONS UNDER CODE SECTION 403(b)

The effective date of the new proposed regulations under Code Section 403(b) has been recently extended by the Internal Revenue Service from January 1, 2006, to no earlier than January 1, 2007.  Although the IRS has stated that no formal announcement of the delay will be made, the extension was reported in the IRS publication Tax Notes Today and at a recent conference in Washington D.C.  Final regulations are expected to be issued before June, 2006. 

While the effective date of the proposed regulations has been delayed, school corporations should take time to consider how the regulations might impact their 403(b) arrangements in the future.  Go here for an outline prepared by Ice Miller summarizing the changes under the 403(b) proposed regulations relevant to school corporations.  

To discuss this matter with your contact in the Employee Benefits Group at Ice Miller, please use this link to access our directory of attorneys.  If you do not have a contact in the Ice Miller Employee Benefits Group, please feel free to contact Mary Beth Braitman, Tara Schulstad Sciscoe, or Lisa Harrison.