GETTING VALUE FROM YOUR RETIREMENT PLANS

Ted Beal

PPG 101434 (3/15) EXP 3/17

MEETING THE CHALLENGES AHEAD

Key Benefit Plans

State Retirement System = NJ defined benefit plan for income

Qualified Plan Opportunities (403(b), 457, Roth, etc…)

Social Security

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1. Review your state pension plan

- Enroll in MBOS- The Member Benefit Online System

- Understand the Financial Value of TPAF- Teachers

Pension and Annuity Fund

2. Know Qualified Plan opportunities

3. Review asset allocation

- Fixed Assets vs. Variable Assets

4. Health check-up

5. Understanding Social Security

Keys for Retirement

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Keys for Retirement

1. Understand value

2. Retirement: Afford it? When?

3. Options

4. Life insurance

5. Health

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Pension Review

The Economic Growth and Tax Reconciliation Act of

2001 enhanced retirement savings options

• Increased plan limits 403(b), 457(b), + 401(a)

• Pay accumulated sick and vacation time as

post-retirement plan contributions

• Employer contributions

• Roth 403(b) – January 2006

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Qualified Plan Regulations Provide ways to plan for Retirement

Source: The Economic Growth and Tax Reconciliation Act of 2001, EGTRA

2015 Limits

• 403(b)/ 457(b) limits

403(b) – 18,000/ 24,000/ 27,000

457(b) – 18,000/ 24,000/ 3 year catch-up

• Employee vs. Employer contributions

Overall 403(b) / (415(c)) contribution limit up to 53,000/year

(plus age 50+/$6,000)

- This includes employer and employee limits

•401(a) Limits

Source: IRS website tax code 403(b), 457(b), 401(a),

Qualified Plan Options

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Employer Contributions

•Employer Match – attracts + retain key administrators

•Sick and vacation 403(b) Post Retirement contributions

- Contributions can be made for 5 years after retirement

- No payroll taxes

- No income taxes until money is withdrawn from

the 403(b) plan*

* Withdrawals prior to age 59½ may be subject to an additional 10% income tax penalty.

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Qualified Plan Options

You Choose Qualified Plan Designs

Design Plan(s) for district and personal needs:

401(a) for benefits package 403(b) for employee benefits and post-employment contributions Pair with 457(b) for double deferral or potential for pre- 591/2 access

Note: Total possible 2015 limits with all three $ 100,000+

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You Choose Qualified Plan Design

for You and Your Employees!

Avoid “problematic” severance pay “plans”

(new guidance)

Maximize savings with multiple plans and multiple catch up options

Convert unused leave pay to retirement benefits

Make employer contributions for up to 5 years after

employees leave

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New Opportunities for You & Your Employees

Our CompanyFacts about AXA Equitable

• Over $610 billion in assets under management, as

of 12/31/2014*, in the United States.

• 15,000 public schools nationally

• 592 New Jersey Schools/ 400 NJ Municipalities

• NJ Higher Education

Our Company

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Source: AXA internal document growth report AUM 403(b)/457(b) plans 12/31/14

Thank You!

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THANK YOUTHANK YOUThis information is not approved or endorsed by any school or state entities. AXA Advisors is

not affiliated with any school or state entity. Securities offered through AXA Advisors, LLC

(NY, NY 212-314-4600), member FINRA/SIPC. Insurance and annuity products offered

through AXA Network, LLC.

Disclaimer

Are Your 403(b) and 457(b) Plans Ready for an IRS Audit?

Wednesday, June 3, 2015

PlanConnect Disclosure

This information is provided for educational and information purposes and is not intended to be used to avoid tax penalties or render tax or legal advice. The taxpayer should seek advice from an independent tax and/or legal advisor.

13April 21, 2023

14April 21, 2023

Today’s Speaker and Agenda

Speakers Brayton Wicks – President

Renea Dumas – Assistant Vice President of Operations

Agenda

Plan Administration – What’s Expected

IRS Audit Questionnaire – First Steps

Compliance and Common Errors

Helping to Avoid Compliance Issues

Plan Administration – What’s Expected

Role of the Administrator Managing the benefit for your

employees Ensuring compliance with the IRS

regulations around each plan Confirming investment providers are

qualified under IRC 457(b) and/or 403(b) and are complying with applicable tax laws

Functions of a Plan Administrator Plan and Compliance oversight Payroll and Contribution

Remittances Employee Awareness

15April 21, 2023

Administration Options Self Administration Use a TPA Jointly with Providers

Administration Capabilities Systems Knowledge and expertise

Plan Administration for Section 403(b) and 457(b) Plans

IRS Audit Questionnaire – First Steps

16April 21, 2023 Confidential: Disclaimer

If you Receive a Questionnaire Don’t ignore the questionnaire Complete the questionnaire on time Consider working with a tax

professional, legal counsel, and/or a retirement plan professional

Who Should be Involved? Human resources Payroll Investment providers Third Party Administrator

IRS Conference Questionnaire

Plan Compliance and Common Errors

17April 21, 2023

Common Errors

Plan Documents Types of contributions permitted

Knowing the Regulations Annual limits, including catch-ups Applying years of service Ordering rules Excess contributions

Monitoring Procedures Roles Process Timing

Record Retention Maintaining copies of agreements Payroll records

Contributions

Failure to Follow the Terms of the Plan

Calculating Years of Service

Excess Contributions Employee limit includes Roth 15 year of service catch-up calculation Ordering rules when using both catch-ups Includible compensation – post retirement

Post-employment Exceeding Five Years

Distributing Excess Contributions Identifying and disbursing timely

Retaining Records

Responsibilities

Plan Compliance and Common Errors

18April 21, 2023

Plan Documents Types of distributions permitted Eligibility rules

Knowing the Regulations Loans Hardships Unforeseen emergency withdrawals

Required Documentation

Monitoring Procedures Roles Process

Record Retention Maintaining all supporting

documents

Distributions & Loans

Failure to Follow the Terms of the Plan

Excess Loans Not aggregating outstanding loan

balances across all plans and providers

Not Obtaining Supporting Documents Residential loan Hardship Unforeseen emergency

Invalid Reason for Hardship and Unforeseen Emergency Withdrawals

Failure to Suspend and Restart Contributions

Responsibilities Common ErrorsResponsibilities

Plan Compliance and Common Errors

19April 21, 2023

Eligibility to Participate (Elective Deferrals) Follow plan document provisions Recommend allowing all employees

(keep it simple)

Only certain exclusions permitted under 403(b) regulations

Effective Opportunity to Participate Notify employees at least annually of

their ability to participate and make changes

New employee welcome kit Informational website Group meetings or workshops Periodic communications

403(b) Universal Availability

No Supporting Documentation Who received the annual notice and copy

of the notice delivered, date, etc. Proof new employee received notice (IRS

is suggesting within thirty days of hire and an additional thirty days to enroll)

Exclusion of Certain Classifications of Employees Substitutes Lower paid employees – not making them

aware of their ability to participate Entry and Election Changes New employee entry (giving adequate

time for new employees to enter) Failure to process SRAs timely

Responsibilities Common Errors

Helping to Avoid Compliance Issues

20April 21, 2023

Provide and Maintain Plan Documents

Compliance Oversight for Transactions Compliance review and sign-off Historical repository of supporting

documents

Contribution Limit Testing Standard limits & Catch-ups

Manage Salary Reduction Agreements Retain SRA changes and track and

report all salary reduction changes

Remittance Management and Tracking Timely remittance of contributions Provide common remitter services Historical reporting

Help to Manage Investment Providers

Information sharing across all providers

What Can a TPA Do?

Universal Availability Annual notice and tracking New employee notification and tracking Participant education

Technical Support Answer regulation questions Inform on regulation changes

Employee and Advisor Services One-on-one customer service support

(bilingual in some cases) Regulation and plan education Website and online tools/calculators

Audit Support Provide supporting documentation Procedures and work with vendors

State-of-the-Art Systems

21April 21, 2023

Thanks and Questions

Appendix: 2015 Limits

22April 21, 2023

23April 21, 2023

PlanConnect, LLC is a wholly owned subsidiary of AX A Distribution Holding Corporation, an indirect subsidiary of AXA Financial, Inc. PlanConnectSM, Connect2ComplySM, Connect2MaintainSM, Connect2RemitSM and Connect2AchieveSM are service marks of AX A Distribution Holding Corporation. PlanConnectSM may not be available in all states. AXA Financial, Inc. and its family of companies do not provide tax advice. Please consult with your tax advisor regarding your particular circumstances. Each company is affiliated. AXA Distribution Holding Corporation and AXA Financial, Inc. are located at 1290 Avenue of the Americas, New York, NY 10104, 212.554.1234.

PlanConnect, LLC is located at 100 Madison Street, Syracuse,NY 13221. 800.923.6669