403(b) 5500's

[mlp0816]

Are 403(b) Church Plans excused from filing a Form 5500 if they offer an Employer Match

[movedon]

Yes, as long as it's a nonelecting church plan under 410(d).

[Guest Matthew Gouaux]

Agreed. See Footnote 1 of Field Assistance Bulletin 2007-02 (available at http://www.dol.gov/ebsa/regs/fab2007-2.html), which states:

"Under ERISA § 4(b) (1) and (2), “governmental plans” and “church plans” generally are excluded from coverage under Title I of ERISA. Therefore, § 403(b) contracts and custodial accounts purchased or provided under a program that is either a “governmental plan” under § 3(32) of ERISA or a non-electing “church plan” under § 3(33) of ERISA are not subject to Title I."

[mbozek]

Agreed. See Footnote 1 of Field Assistance Bulletin 2007-02 (available at http://www.dol.gov/ebsa/regs/fab2007-2.html), which states:

"Under ERISA § 4(b) (1) and (2), “governmental plans” and “church plans” generally are excluded from coverage under Title I of ERISA. Therefore, § 403(b) contracts and custodial accounts purchased or provided under a program that is either a “governmental plan” under § 3(32) of ERISA or a non-electing “church plan” under § 3(33) of ERISA are not subject to Title I."

The definition of a 403b plan that is exempt from ERISA as a church plan under 3(33) is different from the definition of a church plan that is exempt from the non discrimination requirements of IRC 403b which only exempt church plans defined in IRC 3121(w)(3)(A) and (w)(3)(B).