403b open enrollment

[Guest denali52]

are employers required by law to offer only one open enrollment period for enrollment in the 403(B) defered comp plan. My wife's employer told her that she could make only one change per year to her 403(B) plan and only during the open enrollment time.

I can make changes to my 457 plan anytime i wish, if there are IRC regs or any other regs pertaining to this I appreciate any helpfull info. thank you

[Carol V. Calhoun]

Federal tax law used to limit people to no more than one salary reduction agreement per year, but that law has long since been repealed. Thus, the only reason that open enrollment would be limited to once a year would be if the plan's terms, or applicable state or local law, imposed such a limitation.

[mbozek]

I am assuming that this restriction applies only to persons who have become participants in the plan. Under the universal availability rules for 403(B) annuities, an employee must be allowed to make salary reduction contributions in excess of $200 if any employee is allowed to make contributions. This can be interpretated to prevent a plan from imposing a delay in allowing a person to make salary reduction after commencement of employment (e.g., until the next open enrollment period). Some employees such a students exempt from FICA taxation and union members can be excluded.