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403(b) plan merged with 401(a) plan - how to correct

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How do you correct a merger of a 403(b) plan with a 401(a) plan?

Client mistakenly merged a 403(b) plan with a 401(a) plan last year. This year, the client moved the 401(a) plan assets out of the 403(b) plan and merged the 401(a) assets with another 401(a) plan.

Do you need to file a correction with the IRS for the 403(b) plan?

Thanks for any suggestions.

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I think it would be a multi-step correction process, including consideration of whether the 401(a) plan assets were appropriately held in trust at all times.

I recently came across a retirement plan written by a medium size law firm that included 403(b) accounts to hold the salary deferral contributions of HCEs, whereas the rest of the plan is supposed to be a 401(k) plan. Your client is not alone in being poorly advised.

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