junior11
Sep 28 2004, 01:40 PM
We are working witth a non-profit foundation with an ERISA 403(b). As an option
for them(to avoid third party admin), does a paired non-ERISA 403(b) (for deferrals) and a SEP-IRA (for employer contributions) have merit? Can the existing ERISA 403(b) assets be transferred to the new non-ERISA 403(b) without any triggering event?
mbozek
Oct 4 2004, 09:18 AM
I am not sure what admin costs you are saving other than the minimal Reporting and disclosure requirements for the 403b (5500, SPD). There will still be admin costs for employee sal reduction. A SEP has a special rule that requires contributions for all ee who perform service in 3 of last 5 years so part timers cannot be excluded. Why not make er contributions to the 403b for those ee who perform 1000 of service?