group of people forming arrowWhen regulation changed in 2007, many proclaimed the end of403(b)s, but with the emergence of new technology and solutions,these plans have vastly improved. (Photo: Shutterstock)

The 403(b) plan has been around for more than five decades. Thatmakes 403(b)s some of the oldest defined contribution plans on themarket – but much has changed since they were firstintroduced. As retirement advisors, it's importantto know the nuances of these plans and howthey've evolved so you can properly inform your plan sponsorclients about specific compliance requirements, maximize your role,and support better outcomes for participants.

The advisor's role hasn't evolved much

In the beginning, 403(b) plans were retirement arrangements withonly a fixed-annuity option: 403(b)(1) annuity accounts.

In those early days, employees would select their fixed-annuityoption, the employer would deduct a pre-tax contribution from theemployee's paycheck and forward the selection to the selectedinsurance company.

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