The OMNI Group

The OMNI Group Answers Your Questions

If you are an organization that has appointed The OMNI Group as third party administrator, please refer to the frequently asked questions below. If a question/answer does not provide enough information or if you have a question not listed below, please contact us.

Employer FAQ Information:

What responsibilities does the plan sponsor have as the employer under a salary reduction Section 403(b) program?
  • In the most typical case, the employer's only responsibilities are to ensure that contributions are properly remitted to the issuer of the employee's contract, and that the employee's W-2 income and tax withholding are properly adjusted.

Must the employer adopt a formal written plan document in order to establish a Section 403(b) program?
  • Yes. IRS regulations, Section 403(b) require a written Plan Document be adopted by January 1, 2009.

What are the tax consequences if a Section 403(b) program fails to satisfy the applicable Code requirements?
  • The primary consequence ordinarily will be the employee's inclusion in gross income of the employer contribution.

Are Section 403(b) limits imposed on a calendar-year basis or on a plan-year basis?
  • Generally, all limits are on a calendar year, not a plan-year, basis.

What nondiscrimination rules apply to the district's 403(b) programs?
  • With respect to salary reduction contributions, a plan meets the nondiscrimination requirements so long as all plan eligible employees may elect to make salary reduction contributions.

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