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Churches and 401(k) Plans


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Guest LLandau
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Does anyone know of situations under which a church would be precluded from sponsoring a 401(k) plan for its employees?

Posted

Under Code Section 401(k)(4)(B), tax-exempt organizations may include a 401(k) arrangement as part of a retirement plan, but governmental employers cannot. Between 1986-1996, tax-exempt organizations could not add a 401(k) arrangement to a plan, but that prohibition was lifted effective in 1997.

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