401(k) Church Plan

[Guest susa]

I have a group of churches (diocese) who has adopted a 401(k) plan that we are now the TPA for. Under their old 403(b) plan, they had a church plan election. I'm not sure if something special needs to be done to have the church plan election or do they automatically have it (ie. do we need a private letter ruling?)? It appears as though Forms 5500 have been filed for the last two years. What do I do about that? Any help would be greatly appreciated!!

[Guest Danny Miller]

No election is required to be a church plan, whether 403(b) or 401(k). An election is needed to be subject to ERISA and the full panoply of Code benefit rules, but not to have church plan status. In this case, if the plan is maintained by a diocese of a denomination, it should be a church plan, and the comfort of an IRS ruling on the point isn't needed. As a church plan, no 5500 need be filed. The fact that a couple were filed in the past doesn't affect church plan status--the IRS has issued a couple of rulings on this point. Hope this helps.