Universal Availability Notice/ 403(b) and 457(b)
It’s that time of the year again! First Financial Administrators, Inc. is pleased to present your Universal Availability Notice for use by employers that sponsor 403(b) plans. The IRS universal availability requirement indicates that if one employee is provided the opportunity to contribute to a 403(b) plan, then all employees must be provided with that opportunity. This rule is known as the "Universal Availability" requirement. In order for this deferral opportunity to be considered effective, an employee must be able to make an initial deferral election or change an existing deferral election at least once during each plan year.
Also we have attached First Financial Administrator’s yearly newsletter. Our newsletter provides a one-stop guide to help employees enroll under a 403(b) plan. The plan is aimed to help employees plan for their financial future with the opportunity to start saving early. 403(b) plans allows contributions and investment earnings to grow tax deferred until withdrawal.
All employees should be informed of their right to contribute. One method you can comply with this requirement is to distribute a notice to employees on an annual basis. The notice should tell employees of their right to make and change their deferral elections and detail any requirements for making such elections - such as when elections must be made. In order to assist Plan Sponsors we have created the attached.
Additionally, if an employee becomes eligible to participate in the plan sometime during the plan year, he or she should receive the notice as soon as administratively possible.
We have included information regarding the 457(b) plan in addition to the 403(b) plan. If you have an employee interested in signing up with a 457(b) please have them contact your First Financial account manager. Please refer to our website address www.ffga.com for all of your plan information such as: plans offered, approved vendors, summary of options, due dates, forms, your rules for solicitation and your Retirement Specialist name, number and email.