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Can priest elect not to receive profit sharing contribution?


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Posted

Clergy members of a for-profit organization does not want to receive the nonelective profit sharing contribution to which they are entitled. The plan is not using a standardized prototype document (so irrevocable elections not to participate not so much an issue).

Can these priests elect not to receive profit sharing contribution? If so, would a mere plan amendment address this? Does anything else have to be done?

Thanks for your input.

Posted

you can of course exclude anyone by name if you want (as long as you pass coverage)

priests who are members of a religious order, and have taken a vow of poverty at one time were excludedable from 403(b) plans, but as I understand things even this is no longer true

Universal Availability

The following groups of employees, who previously could be excluded, may no longer be excluded from making employee salary deferrals to their employer's 403(b) plan:

Union Employees -Visiting Professors -Individuals who make a one-time election to participate in a governmental plan -Employees affiliated with a religious order who take a vow of poverty.

Posted

Electing not to receive profit sharing contributions seems to be taking a vow of poverty to the extreme.

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