The recent regulations impose standards that treat 403(b) plans more like a 401(k).

The study found that about three-quarters of respondents believe they're fully compliant. But those who aren't so confident are confused on two main issues.The first, according to the survey, revolves around new standards of compliance and evolving fiduciary responsibilities.

Second, plan sponsors are having problems being ready for annual plan audits, as part of the expanded Form 5500 annual reporting requirement to the federal government. Only about half (54 percent) indicated they were familiar with this reporting requirement.

Coordinating plan loans and hardships from multiple plan vendors also is an issue, according to the survey. Only 15 percent indicated they could monitor such activity through a consolidated report.

Penalties for plans not in compliance range in severity both for individuals and institutions, depending on the compliance or fiduciary issue. These can range from fines to full plan disqualification -- which could make all plan assets subject to taxation, according to the TIAA-CREF Institute.

"The survey suggests that the true compliance, reporting and administrative impacts are just beginning to be felt," said David Richardson, a Principal Research Fellow with the TIAA-CREF Institute and a co-author of the report. "Plan sponsors need to be cognizant of the risks their plans -- and their plan participants -- face if they are not compliant."

Final 403(b) regulations replaced the original regulations that were issued in 1964 and apply to all 403(b) plans, at least in part, including government, church and non-ERISA salary reduction only (TDA) plans, according to TIAA-CREF.

On the challenges in understanding new regulations, plan administers say, "It's just complex, long, difficult to understand," and "It was not written on the layman's level. It was written for those with law degrees."

"Those who are confused shouldn't delay in getting the help they need," said Paul J. Gallagher, Managing Director, Product Management for TIAA-CREF and the other co-author of the report. "We urge plan administrators to take advantage of existing programs and services to ensure they fully understand their obligations under the new regulations and to help ensure their plans are in compliance."

Need more information? Click here for detailed information about 403(b) plans and updated regulations from the IRS.gov Web site.