Deferrals (403(b)) as Condition of Employment

[PMC]

Can an employer require employees to make a specified percentage of deferrals to its 403(b) Plan as a condition of employment? Would this violate the CODA definition?

Same plan - the employer makes an employer contribution on behalf of all participants. If the above is acceptable (i.e., mandatory deferrals permitted as a condistion of employment), would the employer contribution be considered a Match because only received if deferrals are made or would it not be considered a Match because all participants receive the employer contribution, it's just you have to make deferrals to even be employed and a plan participant?

[mariemonroe]

I think an employer can require a specified percentage of deferrals to its plan as a condition of employment. I don't think this is considered an elective deferral. Check out Treas. Reg 1.402(g)(3)-1(b) which states that an elective deferral does not include a contribution made as a condition of employment that reduces the employee's compensation.

I'm not sure about your second question. I would guess that it is not a match (assuming the employee contribution is not an elective deferral).