Does anyone know if the IRS has made a determination on negative elections for 403(B) plans? I understand that in the light of the 401(k) ruling, it was being contemplated.

I don't believe that they have so far, although last I heard, they were working on it. Anyone else heard of anything new in this area?

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Employee benefits legal resource site

There is currently a private letter ruling request in front of the IRS, and it is probable that we'll see that yet this year. There has even been "talk" about issuing a revenue ruling in view of the importance of the issue, but, of course, we can't rely on that "talk"! I also hear that the PLR will be favorable, e.g., that negative elections would be applicable to certain types of 403(B) plans (surely not to elective deferral-only plans, but to employer contribution and matching plans, whether ERISA or non-ERISA). Remember: as always, things could "flip-flop", so we can't take this to the bank!

In case you've not yet heard, Rev. Rul. 2000-35 was published in mid July. It permits negative elections for 403(B) plans.

Here's a link to Rev. Rul. 2000-35, in case you are interested.