At T. Rowe Price, we are committed to helping you manage your 403(b) plan. We will help you create a retirement savings program that offers your employees a great investment opportunity while you save time and money.
T. Rowe Price knows how valuable your time is, so we make it easy for you to add the T. Rowe Price funds as an investment option for your plan. We offer:
- The Plan Sponsor Web site to support some of your administrative tasks including complying with the information sharing requirements imposed by the 403(b) regulations.
- Knowledgeable client services representatives available to answer questions you or your employees may have.
- A proven investment strategy that lets us deliver competitive long-term returns while seeking to carefully manage risk.
Explore the benefits of using T. Rowe Price funds for your 403(b) plan.
Most 403(b) plans are required to be maintained pursuant to a written plan document. The written document must contain all the material terms and conditions for eligibility, limitations and benefits under the plan.
Tax-free exchanges are allowed among investment providers within the plan as long as:
- the plan permits the exchange,
- the participant’s accumulated benefit after the exchange is no less than before the exchange, and
- any distribution restrictions are maintained.
If the plan permits, tax-free exchanges may also occur to and from investment providers that are not receiving contributions. This is allowed as long as the employer and the investment provider enter into an Information Sharing Agreement to provide certain information related to tax compliance.
The 403(b) plan employer must oversee the plan’s administrative arrangement to ensure that it is being operated according to the plan document. The regulations permit an employer to allocate plan administrative functions to other individuals (but not to participants).
For example:
- Employers will have to provide 403(b) investment providers with adequate information to allow for the administration of certain distributions.
- Employers will have to remit salary reduction contributions as soon as administratively possible, but no later than 15 business days following the month in which amounts would have otherwise been paid to the participant.
The universal availability requirement generally provides that all employees of 403(b) plan employers (other than churches) must be permitted to make salary reduction contributions if any employees of the employer have that right. Plan sponsors must notify all eligible employees annually of their right to start, continue or change their salary reduction contributions.
Find answers to frequently asked questions about 403(b) plans at T. Rowe Price, including employee enrollment, fees, contributions, distributions, and employer responsibilities.
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