Reading up on 414(h) "Pick up Plans"

[austin3515]

And it raised a question for me on 403b's. 414h seems to indicate that mandatory employee contributions can only be pre-tax for governmental agencies that sponsor these pick up plans and meet a whole slew of requirements.

So, now I look at the TIAA 403b document and it allows for mandatory employee contributions. Yet the plans are sponsored by 501c3's. Are these supposed to be after-tax? Is there another exception out there for 403b plans?

[Peter Gulia]

An employer contribution (even if it is a salary-reduction contribution, and perhaps labeled as a participant or plan-defined "Employee" contribution) is not treated as an elective deferral if the contribution is made according to the participant's one-time irrevocable election. 26 C.F.R. 1.402(g)-1©, 1.402(g)(3)-1.

[austin3515]

But it's not an irrevocable election, it is a mandatory employee contribution. I think there is a difference, don't you?