Retirement assets left with former service providers can pose major administrative and compliance problems for 403(b) plan sponsors — one that could eventually lead to action from Federal regulators.

These so-called legacy assets pose problems because the employer is still required to manage those assets, even though it has moved the entire 403(b) plan to a different provider. That means filling out Form 5500 and handling small payments, qualified domestic relations orders, beneficiary designations and death claims.

According to The Principal, these issues are in addition to the well-known complexities surrounding loans and hardship distributions.