Guest yorkPA814 Posted May 28, 2009 Posted May 28, 2009 As a small non profit are we required to have a vesting schedule for our 403(b) ( 1yr, step down, 2yr 100 %) or can we immediately vest employer contributions?
jpod Posted May 28, 2009 Posted May 28, 2009 The answer is a definite "no," unless I am misunderstanding your question. What makes you think that you might have to have a vesting schedule for employer contributions?
Guest yorkPA814 Posted May 28, 2009 Posted May 28, 2009 H1! Thanks! Well, until now we have had a 403(b) in which only the employee made contributions. Our finance commitee has just made a recommendation to the full board in order to allow the employer to match contributions. One of the board members has posed some questions regarding the new plan which included: Is there a vesting period for employer contributions? I would like to answer her NO, if the decision is up to MGMT. I was not sure if there was some regulation that requires vesting!
david rigby Posted May 28, 2009 Posted May 28, 2009 The answer is a definite "no," ... Careful reading of the original post will indicate that two (opposite) questions are asked. To which question are you answering "no"? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
QDROphile Posted May 28, 2009 Posted May 28, 2009 Maybe this works: There is no requirement under section 403(b) to subject any amount to vesting.
jpod Posted May 28, 2009 Posted May 28, 2009 The answer is a definite "no," ... Careful reading of the original post will indicate that two (opposite) questions are asked. To which question are you answering "no"? Whoops; you're right. My "no" was a "no, there is no requirement to have delayed or graduated vesting."
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