Wise Cracks Commentary with Dan and John 403(b) Participants Set to Lose Under New IRS Regs     In the battle to improve the 403(b) for the participant the news from the front lines is decidedly mixed. Advocates of cost transparency realized a huge gain recently with the launch of www.403bcompare.com. Mandated by California law, the user-friendly website makes it possible for any visitor to get clear product and fee information for all investment products offered to employees of local school districts, community college districts and county offices of education in California. Visitors can sort data by employer, vendor or specific product name, and then compare products to one another through a "My Compare" feature. Beginners will appreciate the financial education and a financial glossary sections. We encourage all 403(b) participants to check out this powerful resource. Disclosure: 403(b)wise was a consultant in the two-year development of 403bcompare.   That's the good news. The not-so-good news is that participants stuck with poor product choice may be losing a valuable escape hatch. The IRS recently proposed new 403(b) regulations set to take effect in 2006. One of the proposals would eliminate the 90-24 transfer to outside-of-plan vendors. Currently, the 90-24 allows participants, with a few caveats, to transfer 403(b) money from an employer 403(b) plan to any provider who will accept the money. This rule has been an enormous boon to the thousands of participants stuck with 403(b) plans offering only high-fee products. In fact, 90-24 Transfer Money is one of our most-read resources on 403(b)wise.   We are more than curious as to why this 90-24 provision is suddenly up for striking. It could simply be that the IRS wants to continue its push to make the 403(b) mirror its retirement plan cousin the 401(k). We would be all for this if it meant that all 403(b) participants would finally have access to quality, low-fee investments in their employer plan in addition to other products. Somehow we doubt this will occur. Instead, participants are set to lose their only weapon against poor vendor choices. Oh well, at least we will have private accounts for our Social Security money.   Home | Disclaimer | © 2001-2005 bWise Guys, LLC. All rights reserved.				Back to the latest Wise Cracks