Mark Va

Hi Carol, I just saw your reply after I sent my previous post. So please just disregard anything redundant. But maybe there’s part you can further reply to

Thank you for your reply. His intention is to maximize both the voluntary 403(b), and increase his irrevocable 403(b) percentage, so he could also maximize the total irrevocable allowable limit. Thus maximizing both allowable limits each year. Is the irrevocable one-time signing any part of a binding Federal, or State law? Or is this irrevocable % election the institutions rule. Being treated as a new employee again would be preferable if it is legal to do so. Also, what events would cause the one-time irrevocable election to be irrevocably binding. For instance if the tax preparer never properly report the 403(b) deferred income, could that mean the election % could still be altered. Or am I misunderstanding the concept.

As a resident physician of a NYS hospital, making only 75k per and loaded with 500k of debt, my son-in-law made a one-time only, irrevocable election on the 403(b) plan of just 5% during the first day of orientation, without realizing what the future consequences could be. Now 5 years later, after finishing a one year fellowship in Vanderbuilt Univ Hospital in TN, the same NYS Hospital has offered him a lucrative contract as a board certified physician. However, he didn’t even recall signing the original irrevocable 403(b) form on his first day 5 years before, nor did anyone explain what the loss consequence could be if he later took a full position after residency. (He was obviously very poor, struggling and loaded with debt at the time he signed.) Is there any way, or is there any precedent in altering this one-time only election.