403b nonelective contributions

[Guest Rachel Israel]

I am attempting to obtain requirements for non-elective contributions to a 403b plan. Time is unfortunately of the essence and I have been unable to locate much authority. Any information is helpful. My personal email is AIsraeltax@earthlink.net. Thank you.

[Carol V. Calhoun]

If the employer is one subject to ERISA (e.g., not a governmental or church entity), a 403(B) plan to which nonelective contributions are made will be subject to Title I of ERISA. Lots of books have been written about this, but there is not really anything that could be summarized within the confines of a message board.

If the employer is a governmental or church entity, the requirements are much simpler (especially starting in 2002, when the complicated "maximum exclusion allowance" rules of section 403(B) go away), the rules are much simpler. However, the benefits must still be provided through an annuity contract, or through a custodial account wholly invested in mutual funds. Usually, whatever provider you select for the annuity contracts and/or as the custodian can also provide you with plan documents that set forth the rules.