OKC73134

If utilizing a 401a prototype document under the Matching Contribution - Formula there should be an option that reads similar to this - The following contributions are Matched Employee Contributions: "Contributions made under the following 403(b) and/or 457(b) plan(s)of the Employer shall be included in the definition of Matched Employee Contribution" and it allows you to enter the name of the 457b or 403b plan name. Under Plan Features just select Marching Contributions Our TPA firm has found a large variance in state laws and several states that are silent in this area or specific only to certain governmental entities or arms. We always suggest to the Plan Sponsor to consult an ERISA attorney in that same state.

Non-publicly traded ESOP large plan is terminating. Plan is a 12/31 year end. Plan terminating amendment was prepared by ERISA attorney who provides the document and executed by the client (6/17/18) to terminate the plan as of 6/30/18. Included in the amendment was a change in definition of compensation. It defines compensation as the 12 months immediately prior to 6/30/18 (7/1/17 - 6/30/18), therefore, using full year compensation for the allocation. Removed the hours requirement and stated the contribution would be allocated to all eligible employees who were employed on 6/30/18 based on full year compensation. Anyone else have experience with this type of change? The 7/1/17-12/31/17 compensation was already the basis of allocation for the 2017 plan year. Can this same compensation be used as part of the basis of allocation for the 2018 plan year?

Carol - the current 403(b) plan is reflected as Non-Erisa. Would that change any of the options?

We have a new client who is a Hospital that currently holds dual status but is dropping the 501(c)3 status. Currently have a 403(b). They are adopting a new 457(b) and a 401(a) plan for employer match. Assets are in 403b individual annuity accounts. Nothing is changing regarding Employer other than non-profit status. What are the options to move over those existing 403(b) balances to new successor plan? Approximately 200 employees are not currently 100% vested in employer contribution. Exchange or transfer does not apply since they are not going from 403b to 403b. They do not want to 100% vest currently in the 403b plan. Want to move match funds and retain vesting schedule.

Thank You Carol. The Hospital is also currently a 501(c)(3). They have been looking at various legal options to cease that status. .

Have a new client that is a Governmental Hospital in the state of Texas. Presently has a 403(b) plan and moving to a 457 Govt Plan. Under the Hospital umbrella they have a subsidiary that is a 501(c)3 organization (with a separate EIN#) and would be considered part of a control group. Currently those employees are all participating in the same 403(b) plan, however, the 501(c)3 entity is not listed on the present adoption agreement. I have reviewed the Advisory Opinion 2003-16A and Section 501(r) Compliance. Could they be considered an agency or instrumentality of the Hospital and be included in the 457 Govt Plan under same document?