Retirement Plans

403(b)

Visit Midwest Capital Advisors at 2my403b.com for more information.

As anyone who is involved with 403(b) plans knows, big changes are on the horizon. The IRS has promulgated new regulations that will govern the establishment and operation of 403(b) plans for plan years beginning in 2009 in most cases. These regulations make it clear that plan sponsors will take on some fiduciary responsibility to plan participants and their beneficiaries.

As with its 401(k) plan clients, MCA is well positioned to assist 403(b) plan sponsors, not only in discharging these fiduciary responsibilities, but also in complying with the other aspects of the new federal regulations as well.

How do we do this? First, as we do with our non-plan clients, we help plan sponsors understand and discharge their responsibility to put the interests of the plan participants first. Doing this also produces the best outcome for them. Our strategies and model-based portfolios are a distinct improvement over using multiple-providers (each of whom may offer a myriad of investment options), which is so prevalent in the plans of most schools and other 403(b) plan sponsors. The multi-provider approach can be confusing and counterproductive to the participants' goal of implementing a strategy that will give them the best chance of planning a successful retirement. MCA, through its 403(b) plan team, offers plan sponsors a single-provider option. This approach provides a way to use a common plan document, monitor and report on participation rates, contributions and withdrawals, and also gives the participants a reasonable number of thoroughly researched, understandable, common sense, diversified, risk-based, low (and most importantly, transparent) cost investment options. Not only does this reduce the administrative burdens of the plan sponsors, it enhances the investment experience of the participants as well. While we truly believe our single-provider option is the best way to provide for the plan participants retirement plan needs, we are able to work with those plan sponsors that want to offer multiple-provider options and include the MCA approach as one of those options.

Visit Midwest Capital Advisors at 2my403b.com for more information.