"It is not uncommon to find governmental agencies that do not operate a public school system, do not have an IRS determination letter and are not within any other classification of an eligible employer, having operated a Section 403(b) Plan for many years. They have been under the misconception that because they are exempt from federal income taxation as a 'local government,' they are an eligible employer. However, the IRS considers a 403(b) plan maintained by an ineligible employer to have experienced a potentially disqualifying event, which it classifies as an 'Employer Eligibility Failure,' starting from the plan's inception."  MORE >>