Is it possible to restate a 403b into a 401k? I have an employer who set up a 403b not knowing they had to be in custodial accounts and for Oppenheimer to be the custodian. Oppenheimer wants to charge them $750 a year to provide custodial services. The employer decided they wanted to have a 401(k) so they can have an inside trustee and not have to pay Oppenheimer for this service.

Do they have any options?

Aren't there going to be possibly even greater charges from the various service providers needed for a 401(k)?

I am sure that the Adminstrator and/or recordkeeper, and the investment providers will all have charges. Who will do the testing and reporting etc and How much will those charges be?

There will be no more charges than normal. This was an ERISA qualified 403(b), so the reporting was all the same. As a TPA, we charge the same fees for a 403(b) as we do for a 401(k).

What si normal for a 403(b) should not be normal for a 401(k).

Are you also providing the investment vehicles?

Are you saying that neither the 403(b) nor the 401(k) investments have any sales charges or account fees?

403(b) plans have many advantages over a 401k plan including simplifed 5500 filing (only answering Q 1-5, & 8) no irs determination letter or ADP testing. I dont understand how reporting can be the same for a 403(b) plans and 401k plans.

Under current law 403(b) assets cannot be transferred to a 401k plan nor can a 403b be restated into a 40lk plan because a 403(b) plan is not a qualfie dplan.