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Guest D Ledden
Posted

Is there a safe harbor plan design available for 403b plans, as there is for 401k plans? I understand no ADP testing is required for 403b plans, but didn't know if there was the ability to 'get out' of the ACP test as well.

Posted

Yes, a 403(B) plan may comply with the 401(m) safe harbor plan design to avoid 401(m) testing. See IRS Notice 98-52, Section VI©, which was not modified by Notice 2000-3.

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