Can a 403(b) plan impose participation requirements for company contri

[Guest]

A private school wants to start a 403(B) plan. As required, participation will be immediate for salary deferrals. Can the school require a YOS for the profit sharing contribution and 2 YOS for the match? Thanks.

[Carol V. Calhoun]

Yes. The profit sharing and matching contributions need merely comply with the nondiscrimination requirements of Code sections 401(a)(4),401(m),410(B), etc. The universal availability requirement applies only to salary reduction contributions. See Code section 403(B)(12).