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Dual Status Gov't Hospitals


Fisher
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Can someone provide me the reasons why a Gov't Hospital would not choose to file or act as a 501©(3) organization besides not having to comply with the new Community Health Needs Assessment (CHNA). What reasons prior to CHNA would they have had besides possible UBIT. And if they did choose to act as one, other than wanting to have a 403(b) plans, what requirements would be needed to continue to act as a 501©(3) organization.

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Not speaking as an expert here.

It is my understanding that 501©(3) organizations generally have to comply with ERISA and plans sponsored by governmental entities don't.

Isn't it essentially automatic that governmental entities are exempt from federal taxation? Why would they want to confuse things by self-identifying as any sort of non-profit?

Always check with your actuary first!

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  • 2 years later...

Don't know if you ever got closure on this issue.  Governmental hospitals can get 501(c)(3) status.  With that accomplished, they can maintain a TDA/403(b) plan as well as a 457(b) plan.  The cost of getting and maintaining 501(c) status is compliance with 501(r). 

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  • 2 months later...

The other "cost" of being a 501(c)(3) is that some very old GCMs say that a governmental entity that obtains 501(c)(3) status becomes subject to UBIT.

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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