Discrimination

[Guest BruceC]

My understanding is that if a 403(b) plan is written to offer ' 'Unviersal Availability', as described in 403(b)(12)(A)(ii), that it is excluded from Title I and need not do annual non-discrimination testing.

If so, and there is no ACP testing, what prevents a school board from picking and choosing select employees to receiving a match or even an elective ER contribution?

BruceM

[QDROphile]

State law, collective bargaining agreements, salary deferral rules, public scrutiny.

[Laura Harrington]

State law, collective bargaining agreements, salary deferral rules, public scrutiny.

If the plan has employer contributions it is no longer exempt from Title I.

[QDROphile]

Sounded like a governmental plan to me, but maybe it was a private school.

[Belgarath]

There's a difference between being tax qualified and subject to Title I of ERISA. If the school system or whoever wants to offer a tax qualified plan to qualify under 403(b), then they have to comply with IRS requirements, regardless of whether Title I applies or not.

[Guest BruceC]

State law, collective bargaining agreements, salary deferral rules, public scrutiny.

I'm speaking of a Govt school district, which I believe is exempt from Title I.

And my question really relates to the IRC, not local policy, although I suspect the latter is what prevents discriminatory ER contributions to a plan with UA.

BruceM