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Patricia Neal Jensen

When is a 403(b) not a 403(b)?

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New client with a plan document which is on a 403(b) Adoption Agreement and the plan's name is "403(b) DC Plan" but the plan only permits a nonelective employer contribution: no deferrals.

Is this a 403(b) plan?

(Why do I care?  Because it is not a PPA document.  If it is a 403(b), then I can restate now; if it is not a 403(b) but a DC plan, it is a problem.)

 

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A 403(b) is permitted, but not required, to allow employee deferrals. The only real limitation is that if it allows deferrals for one, it must allow them for all, except for certain specified exclusions. 

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