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Non-ERISA 403(b) Satisfy CalSavers Exemption?


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The plan sponsor is a 501(c)(3) org and can sponsor a 403(b)... Either ERISA or Non-ERISA.   The CalSavers program requires the employer to have a plan for exemption.  CalSavers is an IRA so I think a Non-ERISA plan would satisfy the exemption, but CalSavers is a little vague about this.  Any knowledge or opinions on this subject?

Thanks

Patricia Neal Jensen, JD, VP

FuturePlan

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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Here’s two relevant texts from the regulations:

“Exempt Employer” means an Employer that . . . (ii) maintains or contributes to a Tax-Qualified Retirement Plan[.]

“Tax-Qualified Retirement Plan” means a retirement plan that qualifies for favorable federal income tax treatment under Sections 401(a), 401(k), 403(a), 403(b), 408(k), or 408(p) of Title 26 of the United States Code. An employer-provided payroll deduction IRA program that does not provide for automatic enrollment is not a Tax-Qualified Retirement Plan.

https://www.treasurer.ca.gov/calsavers/regulations/final-regulations.pdf

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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