Richard Anderson
Oct 10 2001, 06:48 PM
I'm new to 403(B) plans. This is my first (and only) one.
Is the ACP on matching contributions done exactly like for a 401(k) plan? Prior or current year; statutory exclusions; etc.
Are the 180% and 140% safe harbors still in effect?
Carol V. Calhoun
Oct 13 2001, 09:19 PM
Yes, it is exactly the same, except that (a) the ACP test does not apply to church plans, or plans of state and local government, and (B) the ADP test does not apply at all to 403(B) plans, but they are subject to a separate "universal availability" rule under 403(B)(12).
Tom Geer
Oct 16 2001, 11:12 AM
Notice 89-23 is in effect until IRS announces otherwise.