ACP Testing

[metsfan026]

I have a non-gonvernmental Plan, but they do educational services and do get some grant money for pre-school programs.  Would they be considered exempt from ACP Testing?  I just want to make sure, as the issue is coming up with the auditors if it is required or not.

Thanks in advance!

[Peter Gulia]

If a § 403(b) plan has contributions beyond voluntary wage-reduction contributions (and rollover contributions), there are three categories: governmental, church, and neither.

That a charitable organization, if not itself a government agency or instrumentality, gets government grants does not by itself make the organization’s § 403(b) plan a governmental plan.

This is not advice to anyone.