One employer with both 401k and 403b plans

[dmb]

Employer has a 401k and a 403b plan, deferrals and match only. May and/or must the plans be combined for 410b testing. Also, not sure what to ask about ADP and ACP testing since no ADP testing for 403b plans. Any help would be greatly appreciated. Thanks.

[K2retire]

I'm not an expert on 403(b)s, but since they are required to have universal availability I'm having trouble understanding the need for coverage testing.

[QDROphile]

Have you looked at Treasury Regulation section 1.403(b)-5?

[MWeddell]

For purposes of determining whether the deferrals and match portion of the 401(k) plan satisfy coverage testing, the 403(b) plan is disregarded. Treas. Reg. 1.410(b)-7(f) is the clearest citation for this.

There is no coverage test for the deferral portion of the 403(b) plan but instead is a universal availability requirement.

For purposes of determining whether the match portion of the 403(b) plan satisfies coverage testing, the rules are a bit muddy. In my view, it can't be aggregated with the 401(k) plan's matching portion because the regulations governing qualified plans won't allow the two types of arrangements to be aggregated for other purposes. However, if an average benefit percentage test is needed to be performed to get the match portion of the 403(b) plan to satisfy coverage testing, then qualified plans (including the 401(k) plan) are included in the average benefit percentage test.