Plan Document for ERISA 403(b) Plan

[Guest rmwright]

Client has a 403(b) plan that started as a non-ERISA plan but became an ERISA plan when the employer decided to make matching contributions. Client doesn't believe a plan document was established when the employer matching contributions began. In addition, we know for a fact 5500's have not been filed.

It is my understanding the non-filings can be corrected by submitting the 5500's for each year they are due along with the $1,500 penalty.

What are the options for not having a document?

In addition, what about the administration of the plan since it became an ERISA plan?

Thanks in advance for your help!

[Peter Gulia]

With a plan that's intended as a 403(b) plan, the opportunities for getting a plan into reasonable ERISA and Internal Revenue Code compliance are more flexible than for section 401 plans. But which solutions are worth pursuing depends heavily on the particular facts and circumstances, including even the identity and charitable purposes of the plan sponsor, and so doesn't work well as a bulletin-board discussion. I've done many workouts with employers that had never imagined the existence of ERISA. Please feel free to call me for a conversation (without fee) about what's feasible.