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Fisher

Dual Status Gov't Hospitals

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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?

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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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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.

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