Mutual Funds Exiting 403(b) Market

Lincoln Investment is positioned to let your employees continue to invest in these funds without interruption

The IRS issued final 403(b) regulations on July 26, 2007. Among other provisions, the regulations require that the employer approve only product providers who agree to periodically exchange certain required information with various interested parties. This includes information needed to enforce rules on distributions, loans, hardships and exchanges with other approved products.

The new requirements have caused several mutual fund families to reevaluate whether they will continue to act as a 403(b) custodian and accept future contributions. These mutual fund families are concerned about the new reporting functions and increased administration that is required beginning January 2009.

Some fund families have announced that they will no longer act as custodian and will only accept future contributions if another party assumes custodian responsibilities. Fortunately, Lincoln Investment's RetirementSOLUTIONS is positioned to let your employees continue to invest in these mutual funds without interruption.

Since November 2004, when the proposed 403(b) regulations were released, the programming and operations staff at Lincoln Investment has worked to ensure our 403(b)(7) mutual fund platform will comply with the new requirements. The final regulations make it clear that 401(k)-type employer reports are needed and Lincoln Investment is ready to provide such reports.

Also your employees deserve an extensive choice of high-quality mutual funds along with investment assistance. Lincoln Investment’s RetirementSOLUTIONS service offers such choices. Our SOLUTIONS platform includes 1,700 non-proprietary mutual funds from more than 50 well-known fund families and ongoing, personalized counseling and objective advice from Lincoln Investment financial representatives.

• RetirementSOLUTIONS PREMIER Fund Families
• RetirementSOLUTIONS Fund Families

To ensure compliance with IRS regulations and uninterrupted service to your employees, please contact your Lincoln Investment financial representative today.