Arista probably isn’t the only one saying it’s important to restate your 403b. But why is this important? What actually happens if this task isn’t completed?
The best case scenario is that the IRS won’t notice you are not in compliance. While this is technically a possibility, it is very unlikely, and could lead to the worst case scenario quickly.
So… What’s the worst case scenario?
Your schools district’s 403b plan will be out of compliance. This opens up many possibilities for IRS enforcement actions such as losing tax advantages, or shutting down the plan entirely.
How you can avoid this risk:
Keep it simple! Arista can restate your 403b without adding anything to your already full to-do list! This way, you don’t have to worry, and you’ll be a hero for jumping on this early.