exclude from 403b if eligible for other salary def plan (401k)

[Earl]

if the 403b plan excludes employees who are eligible for the 401k plan does the 401k plan have to have immediate entry so that the 403b is no violating the universal eligibility requirement?

Or put another way, if the 403b excludes people eligible for the 401k but the 401k has a 1 year of service (and 1/4ly entry) participation requirement, have I found a problem?

Thanks

[PensionPro]

If you have employees excluded from the 403(b) who are not eligible to defer under another plan, yes you have found a problem. The regs say you can exclude employees who are eligible to make a cash or deferred election (as defined at §1.401(k)-1(a)(3)) under a section 401(k) plan of the employer.