Start up 403(b) and 5500 reporting

[Lori H]

If a small non-profit starts a 403(b) and has no intention of making employer contributions is it subject to 5500 filing? I looked at 29CFR2510.3-2(f) and I am guessing they are exempt, but wanted to get a second opinion.

[Belgarath]

No way to tell from the information given. Deferrals only is a good start, but so much depends upon also satisfying the "limited employer involvement" - such as hardship determinations, QDRO determination, and all the rest. You'd need to look very carefully at your document and vendor agreements.

It shouldn't be this difficult!!! I wish the DOL would be more reasonable (i.e. loosen up) on some of this foolishness.

[QDROphile]

The DOL foolishness is trying to maintain the lie that requirements of the tax regulations do not force all such plans into ERISA.

[Peter Gulia]

Some practitioners wonder that EBSA's more recent interpretations have given charitable-organization employers too much false hope about somehow making available 403(b) contracts without doing anything to establish or maintain a plan.

If an employer has discretion in administering a retirement plan (which seems inevitable if a participant must not decide her own claims, and an insurer or custodian is unwilling to decide claims), shouldn't a participant get the disclosure and reporting that Congress in 1974 provided for?

And if a small business with three employees can file a Form 5500 report on a salary-reduction-only 401(k) plan, why is it too hard for a small charity with three employees to file a Form 5500 report on a salary-reduction-only 403(b) plan?

[Lori H]

yea you would think that with bringing in the plan doc requirements that they would just more closely align 403 with 401(k) regarding reporting requirements.