Background information
This sample Information Sharing Agreement (“ISA”) (Word Document) has not been reviewed, approved or authorized by the Treasury Department or the Internal Revenue Service (“IRS”) as meeting the requirements of any applicable rules or regulations. Guidestone does not provide legal advice. Users of this sample agreement should consult with their legal counsel prior to using this document.
The regulations issued in 2007 by the Treasury Department under Internal Revenue Code (the “Code”) Section 403(b)1 and subsequent IRS guidance2 require that employers enter into an ISA with the issuers of certain contracts under the 403(b) plan. Under the ISA, the employer and the issuer must agree that they will, from time to time in the future, provide each other with the information necessary for the issuer’s 403(b) contract(s) under the plan to satisfy the requirements of Code Section 403(b) and other applicable tax Code requirements.
The sample ISA provides:
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A set of sample contractual provisions, with italicized user notes, and
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A list of the data elements and information which retirement plan leaders3 have collectively agreed upon as minimally necessary for issuers and vendors to exchange.
The sample ISA does not address “how” such data elements and information will be shared between 403(b) issuers, plan administrators, recordkeepers and other vendors.
The employer may need to negotiate with vendors regarding the timeframe in this document’s sections 2(d)(i) and (ii).
The sample ISA is designed to be used as an independent, stand-alone agreement. However, it may be modified for use as an attachment to an existing or more comprehensive agreement between the employer and an issuer.
1Treas. Reg. Sec. 1.403(b)-10(b)(2)(i)(C)(1) and (2) (July 26, 2007).
2Rev. Proc. 2007-71 (December 17, 2007).
3Led by the SPARK Institute.