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ERISA or non ERISA 403b?


Guest TrustMe401k

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Guest TrustMe401k
Posted

Sorry for the ignorance but i deal alkmost entierly in the 401k world. I have a 501©3 client with a 401a plan and they are contemplating a deferral only 403(B)7 plan. If they make matching contributions or non-elective contributions to the 401a plan, does that make the 403b subject to Title I of ERISA?

Posted

If the matching contributions to the 401(a) plan are based on what employees defer to the 403(B) plan, then this might be a role beyond what is authorized for employers in the regulatory safe harbor for non-ERISA 403(B) plans. If that's your case, I suggest you contact your ERISA attorney. The worst case is for you to treat the 403(B) as a non-ERISA plan and later have it determined that it was subject to ERISA.

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