401k and 403b at same time

[jkharvey]

A potential new client is telling us that TIAA/CREF set them up with a 403b plan for deferrals (to avoid ADP test) and a 401k plan for the match. I'm not familiar enough with the new 403b regs (or anything 403b for that matter) to understand how a 401k plan can exist to make contributions for deferrals made into another plan. Is this possible?

[Kevin C]

Could they be saying a 401(a) plan for the match?

Yes, it is possible to have the match on 403(b) deferrals go into another plan. We had a couple of clients that were set up this way pre-EGTRRA when the 415 limit was 25% of pay. For one, the 401(a) plan document was a PS volume submitter document with match and ACP language added. Another pair of plans we inherited used a money purchase document with match and ACP language added for their 401(a) plan. Both were submitted for and received GUST determination letters as minor modifiers of volume submitter documents.