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Erisa Rules For 403b In Contra Costa
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Multi-State
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Contra Costa
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US-001HB
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Employees who normally work fewer than 20 hours per week (or such lower number of hours per week as the plan may provide), subject to the conditions applicable under Code Section 410(b)(4).
Basic ERISA compliance requires employers provide notice to participants about plan information, their rights under the plan, and how the plan is funded. This includes ensuring plans comply with ERISA's minimum standards, recordkeeping, annual filing and reporting, and fiduciary compliance.
Under this provision, if you have 15 or more years of service at the same employer, you can contribute an additional $3,000 a year if you have not maxed out your 403(b) contributions in previous years. The 15-year service catch-up contribution, however, has a $15,000 lifetime limit.
All 403(b) plans are subject to Title I of ERISA unless an exemption applies.
A 403(b) plan must generally allow all employees to make elective deferrals to the plan. Under the universal availability rule, if an employer permits one employee to defer salary by contributing it to a 403(b) plan, the employer must extend this offer to all employees of the organization.
403(b) plans that are subject to ERISA must comply with DOL regulations, which may include obtaining an employee identification number (EIN) for the plan. Governmental, non-electing church and other 403(b) plans that meet the safe-harbor requirements under the DOL regulations are not subject to ERISA.
One key exception is the ADP test that normally applies to salary deferrals. As a trade-off to the universal availability requirement (described above), 403(b) plans are not required to pass the ADP test. This allows any highly compensated employees to maximize their deferrals.
All 403(b) plans are subject to Title I of ERISA unless an exemption applies.
How do I start a 403(b)? 403(b) plans are sponsored by your employer. Enroll with your selected 403(b) vendor, then complete your employer's salary reduction agreement to start contributing to your account. Your contributions may be either pre- or post-tax, depending on what's available to you and what you choose.