Trusted Expert Network.com

One of the most significant improvements on 403(b) plans is the requirement that employee/participants have several choices on where to invest their individual accounts. The downside is that many people don’t feel qualified to evaluate the merits of their investment options and need professional guidance. Districts would be well served to offer the services of expert, trustworthy advisors. Meanwhile, here are some important considerations for assessing retirement plan options:

Think Conservative The old rule of thumb was that the closer you were to retirement age, the more  

Important First Steps for School Districts

• Review current policies, contracts and management procedures for 403(b)s and other benefit programs

• Develop a list of all current benefit providers that details benefits, offered, fees charged and services provided

• Review compliance practices as they relate to the new 403(b) requirements

New York State enacted new rules for hiring retired public employees, reporting attorney information and granting waivers. Public employers, including school districts, should become familiar with the new requirements and carefully review them before hiring retirees.

NEW REPORTING REQUIREMENTS

It is not only students who have much to learn this year. With all of the changes taking place in the world of 403bs, teachers and administrators are going to have to also be very diligent in keeping up with their studies.  With all of the plans and protocols in a state of flux, it has never been more important for you to understand your options as well as have the right tools to evaluate your options.

If you are still doing your taxes once a year, you are losing out on a valuable opportunity to reduce your burden. A smart approach is to do a test run mid-year so that you can take advantage of strategies while there is time for them to make an impact before you submit your actual return. Here are some possible tax-saving ideas that are worth knowing more about, should they apply to you.

If you are a first time homebuyer this year, you will definitely want to look into the tax break that is  

403(b) UPDATE: The IRS recently announced that they had come up with a prototype of a 403(b) plan that will make it easier for plan administrators to comply with the IRS regulations governing these retirement plans. The prototype is intended to assure employers who adopt it that they will be in compliance with the  

Changes in 403 (b) regulations provide employer’s with unique opportunities to offer an improved benefit package to employees, increase program management effectiveness, and streamline costs. Through economies of scale, the new 403 (b) regulations will allow employers to actually offer more for less.

The Trusted Expert Network recently posted an important blog about the new tax bill, signed in December ’08, which waived the 2009 minimum withdrawal requirement on IRAs and other retirement plans for those  

When it comes to making deposits into a 403b or 401k, a typical investor goes on auto-pilot. They make the same decision they did the previous month or quarter, assuming that it’s safer to stick to an old game plan rather than explore new opportunities. But if we have learned anything from this market volatility, it is that to insure growth, you must be proactive, assess your risk tolerance and focus on long term goals.

The first step in accomplishing all of this is to understand your mindset. When making a deposit, are you only thinking about buying the safest investments and parking the money until you have more confidence in the market? Or, or are you an opportunist who is willing to look for the greatest values, knowing that your  

These are the key changes in 2009 for 403b and 401k contributions:

1. The maximum employee contributions go up to $16,500 (unless you are over 50 and then you are permitted to add another $5,500).  This increases the maximum contribution to $22,000.

2. For defined contribution plans, such as the traditional “Keogh” or self-employed plan, the new maximum  

This week President Bush signed a new pension relief bill designed to help retirees by eliminating the required minimum withdrawals from their retirement plans. We can foresee many tax advantages that this bill will open up for our clients and people over the age of 70. Most importantly this will buy additional time to rebuild your portfolios after the hit they have taken in the financial markets over the last few months. Lastly it will be free from immediate taxation.

We’ve all heard the joke that the stock market has dropped so much in value, 403Bs are now called 203Bs. Unfortunately, it’s no laughing matter and the question on everyone’s mind is, what to do?

I’m happy to tell you that in spite of the economic gloom and doom, there is some great news to report. Effective January 1, 2009, and for the first time in forty years, there are new mandated regulations and reforms that will both greatly expand your investment choices and allow you the flexibility to customize your portfolio with an enticing range of asset allocations.
 

Attention TEACHERS: As if you weren’t under enough pressure having the nation’s future in your hands, with the 403(b) plan, you are fast approaching a critical juncture regarding your own future- your financial future.

Are you aware that effective January 1st, 2009, all 403(b) plans will be