Deposits to a 403(b) Plan

[52626]

If an employer sponsors a 403(b) with a match, do the deferral deposits fall under the same DOL timing as 401(k) plans?

[Just Me]

It depends. The question is whether ERISA applies. If the employer is governmental, no. It it's a church, it could go either way depending on the church's election with respect to ERISA. If not exempt from ERISA, then the match makes it an ERISA-covered plan and such rules apply.

[TLGeer]

The contribution timing rules are, technically, rule as to when salary reduction contributions become plan assets that must be held in a trust, annuity or custodial account. They do not apply to any other kind of contribution.

If you wait way too long, you may end up with the match being treated as an annual addition for a later year, and you need to determine the match to do the ACP testing on it.

Tom Geer