Can a utility service sponsor a 401(k) plan or does it have to be a 40

[Guest WHill]

I have a for-profit utility service that did have a Money Purchase Pension Plan and now wants to switch to a 401(k) Plan. Can a Utility Service sponser a 401(k) Plan or does it have to be a 403(B) or 457 Plan?

[MWeddell]

Yes, the utility may sponsor a 401(k) plan. Because the utility is for-profit, you can't sponsor a 403(B) or 457 plan.