Successor Plan Rules

[waid10]

Hi. Does anyone know how the successor plan rules apply to a 403(b) plan? I was under the impression that you could terminate a 403(b) and allow participation in a new 403(b) and not violate the successor plan rules if the new 403(b) was a deferral-only plan (i.e., no employer contributions). Does anyone know if this is correct?

[Guest Tom:]

I don't think that elective deferrals are permitted either. Pursuant to 1.403(b)-2(b)(7) and 1.402(g)-1(b)(3), elective deferrals are considered to be employer contributions.