Bruddah Kimo Posted October 1, 2010 Posted October 1, 2010 Hi - I'm somewhat new to the 403b world and had some questions put to me by a broker. I'm not sure how to respond. A local municipality is looking to start up a retirement plan - they currently have a SIMPLE. It will cover school EE's and other municipal EE's. They want to make a 3-5% contribution to the employee's. Some questions: 1) can they offer a 401k or are they limited to a 403b? 2) Since it is a government agency must the 403b be a non-ERISA plan or can it be an ERISA 403b? 3) If they can offer both 401k or 403b, what would be the advantage of either? Thank you for any insights you can provide!
QDROphile Posted October 1, 2010 Posted October 1, 2010 No 401(k) unless you can find a grandfathered government plan to tap into. 403(b) for school employees only. Look into a 457(b) plan as the government equivalent of a 401(k) plan.
david rigby Posted October 1, 2010 Posted October 1, 2010 McKay Hochman's comparison chart: http://www.mhco.com/Library/Articles/2008/...art_103108.html I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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