403(b) vs. 401(k)

[Guest Cyndi]

I work for a newly merged health system of non-profit facilities. Currently we have both 403(b)'s and 401(k)'s throughout the system. We're building one retirement program to include all employees and want to go with a 401(k)plan. I'd like to provide upper management with 401(k) selling points vs. 403(b)'s and any assistance would be greatly appreciated.

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Cyndi

[MWeddell]

One thing to watch out for is that if there are any for-profit affiliates, they tend to be the locations that have 401(k) plans and the not-for-profit locations tend to have 403(b) plans because they couldn't have 401(k) plan from 1986-1996. In this case, it's often difficult to get the 401(k) plans to pass coverage testing for years beginning in 1998 and later because the HCEs tend to concentrate in the for-profit locations and there are no special coverage testing rules that allow you to ignore this.

[Guest TYounkin]

I would keep in mind that employees in 401(k) plans are more protected under ERISA than employees in 403(B) plans.

One persons strong arguement is found at this forum.... http://www.morningstar.net/nd/ndNSAPI.nd/B...003&convId=6028

I think you will find many articles useful if you do an article search on the web.

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http://www.geocities.com/CapitolHill/Congr...2077/links.html