Elective deferrals to 403b plans

[Guest jyork]

Hello,

I would like to know if an employee can ask their employer to convert retro pay increase, professional growth stipend, and longevity stipend from elective deferral to non-elective deferral (employer contribution)? If this is possible will non-elective deferral be subject to OASDI, MEDICARE, SDI taxes? I have been told that non-elective deferrals into a 403b will save on the above taxes for both employee and employer. The employer in this case is 501(3)© Public School District.

Thanks,

jyork

[QDROphile]

If you are talking about an individual, the practical answer is negative. You may get a post that goes in to one time election rules that offer certain opportunities, but the arrangements are impractical, as well as unavailalbe to current employees under the proposed regulations. If you are talking about converting amounts for all employees from current compensation to deferred compensation, that can be done, but does everyone want to have those compensation items go into the 403(b) plan? Nonelective contributions are not included in FICA wages.

[joel]

Hello,

I would like to know if an employee can ask their employer to convert retro pay increase, professional growth stipend, and longevity stipend from elective deferral to non-elective deferral (employer contribution)? If this is possible will non-elective deferral be subject to OASDI, MEDICARE, SDI taxes? I have been told that non-elective deferrals into a 403b will save on the above taxes for both employee and employer. The employer in this case is 501(3)© Public School District.

Thanks,

jyork

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FYI: A 501©3 employer is not a Public School District.