Mandatory & elective deferrals

[SheilaD]

I had some work with a school that has a 403(b) plan. They have lots of problems (just finished filing 8 years of back 5500's for one). The plan calls for mandatory employee contributions of 3% of pay with a "match" of 3% of pay. 1 year wait. I understand that for plan purposes the mandatory employee contributions are actually non-elective and do not count toward maximum deferral limit and are not subject to universal availability rules. However the plan does allow for employee deferrals in excess of 3% of pay which I would think is an elective deferral. As the elective deferral is subject to universal availability - wouldn't they have to allow employees to start deferring immediately and not wait the 1 year?

Thank you.

[ETA Consulting LLC]

Your understanding is correct. The "elective deferrals" are subject to universal availability. The nonelective contributions (as you described) are not.

Good Luck!