Can 501(c)3 offer a 403(b) and a 401(k)?

[Guest jusducki]

Employer currently has a MP plan and a 403(b). Broker called and asked that we amend/restate MP to a 401(k) so all participants could control their own investments. Employer will now contribute the MP formula (6% of comp) to new 401(k) as a Profit Sharing contribution and, if participants choose, may contribute to the 401(k). Broker never mentioned Employer also has an active 403(b) plan - the controller happened to mention it to me today and said he felt no one would defer salary to the 401(k) as all seem happy with their 403(b) account. My knowledge of 403(b) plans is zip. Can Employer offer both plans? If so, does having both plans affect the testing for the 401(k) or is the 401(k) simply handled on its own merit? Am I making this more complicated than it really is?? Thanks in advance for any help given!

[Guest mjb]

NP can maintain 403b and 401k but employees salary reduction under 402(g) is limited to 15,500 /20,500 contribution to both plans. However, 403b is not subject to ADP testing so HCEs will contribute to 403b instead of 401k to max out contributions. Non hces will contribute to 401k b/c they are not subject to ADP test. Also some NP employees can contribute an additional 3k pre tax to a 403b plan. Dont know why employer will pay to maintain both plans.

[A Shot in the Dark]

If everyone is happy with 403(b) plan and it is meeting the needs of the employer and the employees, amend and restate MP plan to profit sharing plan to house employer contributions, leave 401(k) provisions out of the picture.