Can a public school district maintain a 401(k) plan?

[Guest]

As I read IRC section 401(k)(4), a public school district cannot maintain a 401(k) plan for its nonteaching staff. (The teachers are covered by a state teachers retirement program.) Therefore, a 403(B) or 457 plan are the only options. Am I interpreting this correctly?

[IRC401]

You are correct, BUT some states have grandfathered 401(k) plans. If you are in such a state, there may be a state 401(k) plan in which the teachers could (in theory) participate.