403(b) TSA - When are they subject to ERISA and when are they not?

[Guest mapiro]

I am curious as to what cicumstances a 403(B) TSA would be subject to ERISA and when it wouldn't be. And were can I get more information about this matter?

[Carol V. Calhoun]

A governmental or church 403(B) is never subject to ERISA. Other 403(B) plans are subject to ERISA unless they meet a limited exception in 29 CFR § 2510.3-2(f) for 403(B) plans that contain only employee deferrals. For a copy of that regulation, you can click on this link and then scroll down to subsection (f).

[Ellie Lowder]

In the case of a church 403(B) (e.g., the plans of religious organizations), be careful, because a church/church organizations could affirmatively elect to be covered under ERISA - and, in my long history w/403(B) and related plans, I have found some that have done exactly that.

[Carol V. Calhoun]

Ellie, you're right, I've seen a few of those, too, and should have clarified that in my response. The advantage is that they get to worry about only one federal law instead of 50 different state laws.