403B Plan to 401k

[KevinMc]

A small non profit currently has a 403b plan and would like to change investment providers. The preferred provider will only allow a plan for this size on their 401-k platform. Is there a provision that would allow the 403b to be amended to a 401k prior to changing providers or does the 403b have to be terminated and a new 401k plan started and what are the steps? Any help is appreciated.

[ETA Consulting LLC]

You cannot amend a 403(b) to a 401(k). They are two different animals. You'd likely have to terminate the 403(b) and begin the 401(k). I would ensure that the free-ride on the deferrals isn't compromised by trying to start a 401(k) without a safe harbor provision. This happens too often as the investments become the primary sale absent any thought of proper plan design.

Good Luck!

[rcline46]

Get a new asset provider. Don't let the wagon drive the horse!