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What happens to a participant’s assets when a 403(b) plan is terminated?

April 26, 2017assets happens participant Plan terminated

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What happens to a participant’s assets when a 403(b) plan is terminated?

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Generally, a terminating 403(b) plan must distribute all accumulated benefits to the participants and beneficiaries as soon as administratively feasible. Revenue Ruling 2011-7 provides examples of how to terminate a 403(b) retirement plan funded in different ways and explains when the terminating plan’s distributions are taxable.