Flat-dollar non-elective contribution?

[Guest jayback]

Client has already set-up a salary reduction 403(B) plan for its employees. Client would like to add a component whereby it contributes a flat dollar amount on behalf of all employees (not just employees who elect to contribute). Is this permissible or does client have to contribute based on percentage of salary? Can employer retain discretion to determine contribution from year to year? Are there alternatives outside the 403(B) plan to consider?

[mbozek]

is this a non profit employer or govt plan? NP 403(B) plans must non discriminate in favor of HCE above 90k. Flat contributions where er makes same $ contribution for all eligible emplyees will not discriminate in favor of HCEs because HCEs will receive lower contribution as a % of pay than HCEs. eg. 3000 contribution for ee making 30 k is 10% but 3000 k contribution for ee making 100k is 3% of comp. Govt plans are not subject to non discrimination rules. ER can elect to make contributions on a discretionary basis.

[Guest jayback]

Thanks for the response. The client is a non-profit. I had hoped that this was the answer.