Erisa 403(b) to Non-Erisa 403(b)

[Jilliandiz]

Can this be done? Are there any rulings or information I can read about this?

I'm not too familiar with 403(b) plan in general and I have someone asking me about switching a current Erisa 403(b) to a Non-Erisa 403(b) plan? Can anyone help me here?

[Guest mjb]

A salary reduction only plan can be exempt from ERISA if certain requirements under DOL reg 2510.3-2(f) are met. Employer can establish non erisa 403b plan for contributions remitted after the effective date of the plan. There are some downsides to being a non ERISA plan in that state laws regarding fiduciary duty may apply.

[Jilliandiz]

Would they have to terminate the Erisa Plan like you would a 401k plan before they could establish a non-erisa 403b plan? What about successor plan rules, do you think that would affect them setting up this non-erisa sooner than later?

[Guest mjb]

under current regs there is no termination of a 403b annuity because there are no plan assets to distribute (employees own the annuities). There are no sucessor plan rules for 403b plans.