adp/acp in 403b plan

[Guest Laura Browne]

In an non-ERISA 403b plan, is adp/acp testing required?

[ljr]

The deferrals do not need to be tested but any match does.

[Guest jazmyn]

You would not have an ACP test in a non-ERISA plan. If you had matching contributions then the plan would be considered an ERISA plan and yes you would have to run and ACP test.

[Lori Friedman]

The ADP test is never required for a 403(b) plan.

If the plan has an employer match, it won't be a non-ERISA plan and will become subject to ACP testing. But, the employer really doesn't want to "go there". It's best to protect the non-ERISA attributes of a 403(b) plan and make any employer contributions to a separate, parallel qualified plan. It's ok to do a 403(b) match into a qualified plan sponsored by the employer.