Is a governmental plan subject to the nondiscrimination requirements of Code section 117(d)(3)? Code section 117(d)(3) references 414(q), which is of limited applicability to governmental plans due to the inapplicability of 401(a)(4) to most governmental plans under TRA 97. Thanks.

As far as I can make out, they are. Neither the original 1977 moratorium nor the later statutory moratorium on applying nondiscrimination rules to governmental plans applies to plans other than retirement plans. Of course, whether the IRS really wants to go after governmental plans for nondiscrimination issues, after the firestorm it encountered when it attempted to apply such rules to governmental retirement plans, is a whole other question.