In late July 2007, the Internal Revenue Service dropped a bombshell in the form of new 403(b) regulations, which present great challenges for public school districts and community colleges. The challenge for employees participating in 403(b) plans is the new environment created by the requirement that 403(b) programs in existence since 1961 suddenly are required to be part of one plan. Because the final regulations and the subsequent revenue procedure were put into place well before certain other necessary guidance was available (such as a plan document prototype program, and correction procedures specially focused on the changes in the final regulations), various organizations filed comment letters with the IRS (among them were the Association of School Business Officials International) requesting an extension of the general effective date of the final regulations. Unfortunately, the IRS responded with Notice 2009-3 on December 11, 2008, which might be described as "too little" and "too late." In that notice, the IRS notes: (1) An employer can wait until December 31, 2009, to actually adopt the written plan IF; (2) During 2009, the employer conforms and operates the 403(b) plan under a "reasonable interpretation" of the final regulations; and (3) The employer uses the principles of the Employee Plans Compliance Resolution System revenue procedure to correct any operational failures occurring in 2009. The author discusses the aftermath of the new 403(b) retirement regulations and presents answers to some important questions regarding the new regulations.