Plan Document requirement for multiple 403(b) programs in non-electing

[Guest TRUST53]

Does a non-electing church employer, such as a Catholic Archdiocese, need a qualified plan document if they have a matching provision for some of their employees?

or

Is it sufficient to prepare a "Statement of plan operating provisions" that also states which employee groups are eligible for the match since the church plans are not subject to ERISA?

This particular Archdiocese has a 403(B) custodial program allowing deferrals only for the schools and parishes, while it also has a 403(B) that has a match component for two high schools and the main administrative offices.

[Carol V. Calhoun]

Because the plans are not subject to ERISA, they do not require a formal plan document. Section I,A(6) of the IRS examination guidelines for 403(B) plans provides that "Unlike qualified plans, 403(B) plans are not subject to the requirement of a definite written program (although Title I requires a written plan document for certain 403(B) plans)." Thus, a plan which is not subject to Title I of ERISA need not have a formal plan document. You just need to make sure that either the underlying custodial account agreements or the "Statement of plan operating provisions" contains provisions necessary to bring the plan into compliance with section 403(B), such as (1) the coverage rules; (2) the direct rollover requirements under § 1.403(B)-2, Q&A 4; and (3) the 402(g), maximum exclusion allowance, and 415 limits.

[Guest TRUST53]

Thank You. Does this also apply to the match component?

[Carol V. Calhoun]

Yes, given that this is a church plan.