As we move through our fourth decade, things seem to change in ways that we do not expect. Much to the dismay of vendors, advisors and the participants, the realm of the 403(b) has not been able to escape the proverbial midlife crisis either.

A true child of the 60’s, with the first 403(b) regulations released in 1964, the 403(b) followed the beat of a different drummer, separate from the self-absorbed and attention grabbing 401(k) that emerged almost two decades later. The warning signs of something on the horizon were there, and as we were soon to find out, to everything there is a season. For the 403(b), it started in November 2004 with the proposed regulations, and then we faced the confirmation of some our worst fears with the release of the final regulations in July of 2007. The final version of the new 403(b) regulations touched any employee requested transaction, including loans, hardships and exchanges, not to mention the additional oversight and reporting requirements that fell to the plan sponsors.