By the Numbers
To 403(b) or not to 403(b)
Sponsors and participants in 403(b) plans have shown remarkable resilience and flexibility amid
changing conditions due to the recession and new IRS regulations, finds the Profit Sharing/401k
Council of America. Findings from its 2010 403(b) Plan Survey include:
The overall participation
rate for employees
eligible to participate in
a 403(b) plan is 75.8%,
unchanged from 2008.
Nearly 57% of plan sponsors
made changes to their 403(b)
plans because of new regulations.
plan sponsors
across the country.
the survey reports
on the 2009 plan-year
experience of
552
48% of small plans ( 1-49 employees) made
changes as a result of the IRS rules, while nearly
70% of plans with 200 or more employees did so.
of respondents
are unsure if
their plan has
an investment
policy statement.
1/3
The percentage of plans permitting Roth
after-tax contributions increased to 13.9 10.9 up from in 2007.
only 1.3%
of participants
took hardship
withdrawals
in 2009,
even though
76% of plans
allow them.
