Lori H Posted January 26, 2015 Share Posted January 26, 2015 If a small non-profit starts a 403(b) and has no intention of making employer contributions is it subject to 5500 filing? I looked at 29CFR2510.3-2(f) and I am guessing they are exempt, but wanted to get a second opinion. Link to comment Share on other sites More sharing options...
Belgarath Posted January 26, 2015 Share Posted January 26, 2015 No way to tell from the information given. Deferrals only is a good start, but so much depends upon also satisfying the "limited employer involvement" - such as hardship determinations, QDRO determination, and all the rest. You'd need to look very carefully at your document and vendor agreements. It shouldn't be this difficult!!! I wish the DOL would be more reasonable (i.e. loosen up) on some of this foolishness. Link to comment Share on other sites More sharing options...
QDROphile Posted January 26, 2015 Share Posted January 26, 2015 The DOL foolishness is trying to maintain the lie that requirements of the tax regulations do not force all such plans into ERISA. Link to comment Share on other sites More sharing options...
Peter Gulia Posted January 26, 2015 Share Posted January 26, 2015 Some practitioners wonder that EBSA's more recent interpretations have given charitable-organization employers too much false hope about somehow making available 403(b) contracts without doing anything to establish or maintain a plan. If an employer has discretion in administering a retirement plan (which seems inevitable if a participant must not decide her own claims, and an insurer or custodian is unwilling to decide claims), shouldn't a participant get the disclosure and reporting that Congress in 1974 provided for? And if a small business with three employees can file a Form 5500 report on a salary-reduction-only 401(k) plan, why is it too hard for a small charity with three employees to file a Form 5500 report on a salary-reduction-only 403(b) plan? K2retire 1 Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
Lori H Posted January 27, 2015 Author Share Posted January 27, 2015 yea you would think that with bringing in the plan doc requirements that they would just more closely align 403 with 401(k) regarding reporting requirements. Link to comment Share on other sites More sharing options...
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