Vesting on 403(b) match when made to Church Retirement Plan

[Guest tonjer]

I have a situation where the matching contributions for participants in a 403(B) plan are made to a church retirement plan (defined benefit). Do the EGTRRA vesting requirements apply to the matching contributions made to the church retirement plan?

[mbozek]

If the church plan is exempt from ERISA then the vesting rules do not apply.

[david rigby]

...unless the plan provisions make them applicable.

[Guest tonjer]

So even though the match is based upon participant contributions to the 403(B) plan, because the match is made to a Church plan, the vesting rules do not apply? My concern was that because the match contributions are based upon the 403(B) contributions, the vesting rules would apply.

[mbozek]

There is no vesting requirement for employer contribututions under IRC 403(B). Thus there are no vesting requirements for contributions to a 403(B) plan exempt from ERISA. Contributions had to be vested for the purpose of the exclusion allowance which was repealed effective January 1, 2002. Employee contributions to a 403(B) plan subject to ERISA must be 100% vested. Non matching employer contributions to a plan subject to ERISA must be vested under either 5 year cliff or 7 yr graded schedule.