403(b) deferral test/refund

[mlp0816]

WIthin a 403(b), since there is not a ADP test that is performed, can HCE's contribute at least $17,500 without worry of receiving a refund? Or is there some other type of test performed to avoid discrimination on the deferral side if the NHCE's are not deferring that much??

[austin3515]

Only that the deferral opportunity must be provided to ALL employees, no age or service requirement (some excpetions of course). It's called Universal Availability and is how the 403b meets nondiscrimination on elective deferrals.

This should have been posted in the 403b forum, but I'll let it slide because I want to make sure you can see my response...