Employee "opt out" of a 403 b

[KevinMc]

For an ERISA 403b plan that doesn't exclude a particular participant for any other reason, can they "opt out" of receiving the employer match and/or discretionary contribution? The idea would be to negotiate a higher salary......any help appreciated.

[QDROphile]

From an experience years ago, and involving an IRS letter ruling, I recall that the one-time irrevocable election concept under 401(k) also applied to 403(b) plans as well. I have not thought about what may have happened since in the law (other than the employer must have a plan document). That might not fit where you want to go or the timing elements. The person could be made ineligible for the match and discretionary contribution without participating (recorded opting out), subject to discrimination rules, and a risk that the negotiation would be treated as a CODA. Done properly, the CODA risk should be very small.

[EPCRSGuru]

You might have to have an "opt-out" provision in your plan document--talk to your attorneys.