Guest Jim Jesikiewicz Posted March 10, 2003 Report Share Posted March 10, 2003 I have been approached about a 403(b) plan in existence for a governmental agency that is not allowed to sponsor a plan of this type. The sponsor is neither a public educational institution and/or a certain nonprofit organization. The sponsor is part of the U.S. Department of Housing and Urban Development that administers Federal aid to local housing agencies that manage the housing for low-income residents at rents they can afford. Normally we see these type of sponsors in a Money Purchase plan since most (if not all) of the contributions are strictly employer related and we would utilize a 457 for any employee looking to subsidize their retirement further on a pretax basis. I think the former administrator has even filed 5500's. What would be the best mode of operation? Should the plan be entered into some type Voluntary Correction Program to move the 403(b) into a 401(a)? There is NO question they qualify as a governmental entity, should an application for a formal confirm still be filed with the DOL? Thank you in advance for any feedback... Link to comment Share on other sites More sharing options...
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