2021: Quarter 3 Newsletter
Amending Your Plan
To amend your Plan, AFPlanServ will need a written request from you, the Plan Sponsor, with the changes(s) to be made before implementing the changes operationally. The request can be sent to us via email.
Once the request has been received, AFPlanServ will amend the Plan and an updated Adoption Agreement will be sent for your review and signature by an authorized signer. Upon receipt of the signed Adoption Agreement, the changes will go into effect as of the requested amendment date.
Did you know?
You can add providers to your plan!
To add a new provider, you may email a request to us that includes the provider's name. We will send you a Provider Agreement to sign and send back to us. The Provider Agreement will be sent to the provider for their review. Once both parties sign the Provider Agreement, an Amended Adoption Agreement will be sent to you for signature.
The provider will be added to your plan when the Amended Adoption Agreement is received back in our office.
Reporting
The Internal Revenue Service (IRS) audits all types of qualified plans. Therefore, employers should maintain policies and information to demonstrate compliance if an audit occurs. AFPlanServ will provide reports of your Plan activity as requested and in the event of an audit.
These reports include:
Year-to-Date Contributions:
The total amount of all contributions made by the Plan participants to respective approved providers in a given calendar year.
Distribution Information:
The total amount of distributions made to Plan participants from providers during a given calendar year.
Loan:
The total amount of loans taken by all Plan participants during a given calendar year.
Hardship:
The total amount of hardship distributions made to 403(b) Plan participants from providers during a given calendar year.
Asset Account Balance:
- By provider - The total of all account balances, by provider, of all Plan participants
- By participant - The total of all account balances, by participant, of all providers of the Plan
Have you completed your "Lookback" test?
If your 403(b) Plan excludes all employees who work less than 20 hours or less on average per week, or 1,000 hours or less per year, you must complete two tests to ensure that no one is being excluded in error. The first test is conducted on the employee’s hire date, and the second test is a “Lookback” test completed each subsequent 12-month period or every Plan year.
Improper exclusion of employees who otherwise are eligible to participate can put your Plan at risk of non-compliance.
If you have immediate questions or concerns, please contact us.
Frequently Asked Questions
Q: What is the timeframe to get transaction requests approved?
A: Standard approval time for transactions is dependent on the type of request. Once all properly completed forms are provided to AFPlanServ, transactions including Plan distributions, rollovers, transfers, and exchanges are approved within 3-4 business days and forwarded to the provider for processing.
If the Plan allows, hardship distributions and Plan loans take slightly longer due to the steps required to approve. The standard approval time is 5-7 business days.
Q: Can I email requests?
A: Yes. All transaction requests and salary reductions may be emailed to us. We do recommend; however, they are sent securely to protect participant information.
Plan Reminders
Each year, AFPlanServ provides a Sample Eligibility Notice to help satisfy the Universal Availability requirements.
You may use it as a template for your custom notification or distribute the sample in its entirety.
Please check the Operational Guidelines to ensure you are adhering to the items listed. If you have any questions, please contact us.
If you need more information about your role as the Plan Sponsor, we're happy to help!