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Erisa Rules For 403b In Hillsborough
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Multi-State
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Hillsborough
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US-001HB
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FAQ
When is a 403(b) plan subject to ERISA? All 403(b) plans are subject to Title I of ERISA unless an exemption applies.
403(b) plans sponsored by 501(c)(3) organizations (such as tax-exempt hospitals and charitable organizations) are generally subject to ERISA but may choose non-ERISA if they meet specific requirements. In other words, they do not automatically qualify to be non-ERISA.
In general, ERISA does not cover plans established or maintained by governmental entities, churches for their employees, or plans which are maintained solely to comply with applicable workers compensation, unemployment or disability laws.
The top recordkeepers for ERISA 403(b) plans are TIAA, Lincoln Financial Group, Newport Group, VALIC and Principal Financial Group. For non-ERISA plans, the top five are Security Benefit Life, Voya Financial, VALIC, AXA and Fidelity Investments.
Limit on employee elective salary deferrals The limit on elective salary deferrals - the most an employee can contribute to a 403(b) account out of salary - is $23,000 in 2024, ($22,500 in 2023; $20,500 in 2022; $19,500 in 2021 and 2020).
ERISA restricts certain actions related to how benefit plans are designed and administered. For example, it limits the types of investments that retirement plans can make, imposes fiduciary duties on plan administrators, and mandates specific reporting and disclosure requirements.
A: All 403(b) plans are regulated by the Internal Revenue Service (IRS). The IRS defines who may participate in the plan and the plan's permissible investment options.
Unlike 401(k) plans, only about half of the estimated $1 trillion of assets in 403(b) retirement plans are subject to the Employee Retirement Income Security Act (ERISA), the main federal law protecting holders of these types of retirement accounts.
Equitable has been the #1 provider of K–12 403(b) plans for 10 consecutive years. We've been working with educators for over 165 years to help create strong financial foundations. We have one-of-a-kind financial products designed to meet the unique needs of educators.
401(k) plans and 403(b) plans offer very similar benefits. As such, one isn't really better than the other. The main difference is that each plan is offered to employees of different types of companies. Another key difference between the plans is that 403(b) plans also offer a $15,000 catch-up.