403(b) plans

[Guest Big Al]

We just were asked to bid on a college that sponsors two 403(b) plans.

One has a match and one does not.

I am finding conflicting information on what testing needs to be done.

Anyone know for sure?

thanks

[Nassau]

The Final 403(b) Regulations provide that employer contributions and employee after-tax contributions must satisfy the nondiscrimination requirements in the same manner as a qualified plan.

The IRS Notice 89-23 good faith resaonable standard regarding nondiscrimination requirements no longer applies.

ADP testing requirements do not apply to elective deferrals because they are subject to universal availability requirements.

[Guest Big Al]

thanks

I imagine i have to do 401(m) on the plan that has the match.

Also, i believe that I have to 410(b) if it ends up that the plans do not cover everybody.

Anything else I may be missing?

thanks again

[Guest mjb]

thanks

I imagine i have to do 401(m) on the plan that has the match.

Also, i believe that I have to 410(b) if it ends up that the plans do not cover everybody.

Anything else I may be missing?

thanks again

The nondiscrimination rules, including 401(m) and 410(b) do not apply to public colleges or colleges sponsored by churches as defined in IRC 403(b).

[Guest Big Al]

thanks

I imagine i have to do 401(m) on the plan that has the match.

Also, i believe that I have to 410(b) if it ends up that the plans do not cover everybody.

Anything else I may be missing?

thanks again

The nondiscrimination rules, including 401(m) and 410(b) do not apply to public colleges or colleges sponsored by churches as defined in IRC 403(b).

I knew about the Church exclusion, but I was not aware of the college exclusion. Thanks