Nonprofit (501(c )(3)) plan sponsor provides a lump sum numberto each employee representing an amount which can be contributed to the HSA or, if not, to the 403(b ) plan. It has always been my opinion that such a choice makes this money, when contributed to the 403(b ) plan, an employee contribution because of the old cash or deferred rules. The employer would like it to be deemed an employer contribution. We could insert a Non-Elective provision with individual groups and test it, but I am just not certain that the fundamental question and answer are correct.
Please share your thoughts! Thank you.
Patricia Neal Jensen