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When is a 403(b) not a 403(b)?

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New client with a plan document which is on a 403(b) Adoption Agreement and the plan's name is "403(b) DC Plan" but the plan only permits a nonelective employer contribution: no deferrals.

Is this a 403(b) plan?

(Why do I care?  Because it is not a PPA document.  If it is a 403(b), then I can restate now; if it is not a 403(b) but a DC plan, it is a problem.)


Patricia Neal Jensen, JD

Vice President and Nonprofit Practice Leader

|Future Plan, an Ascensus Company

21031 Ventura Blvd., 12th Floor

Woodland Hills, CA 91364

E patricia.jensen@futureplan.com

P 949-325-6727

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A 403(b) is permitted, but not required, to allow employee deferrals. The only real limitation is that if it allows deferrals for one, it must allow them for all, except for certain specified exclusions. 

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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