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For Profit Sub of 501c3

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Eligible employer means -

(A) A State, but only with respect to an employee of the State performing services for a public school;

(B) A section 501(c)(3) organization with respect to any employee of the section 501(c)(3) organization;


So no then, because the employees here are not employed by the 501(c)(3) org.  Sounds like everyone agrees?

Austin Powers, CPA, QPA, ERPA

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Concur.  A corporation other than a 501(c)(3) charity or for public schools cannot maintain a 403(b) plan, unless the corporation is an employer of a minister, and then only for the minister.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania



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Agree.  Sub, as a for profit, cannot sponsor a 403(b).  Sub should adopt a 401(k).   Or the 501(c )(3) can terminate the 403(b) and adopt a 401(k) and then the Sub can also adopt the 401(k).  (Not recommending the latter but it would put them both in the same plan, if that goal is important.)

Patricia Neal Jensen, JD

Vice President and Nonprofit Practice Leader

|Future Plan, an Ascensus Company

21031 Ventura Blvd., 12th Floor

Woodland Hills, CA 91364

E patricia.jensen@futureplan.com

P 949-325-6727

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