ERISA
Non-ERISA
As a non-profit, an organization may be eligible to sponsor a 403(b) plan, but as an ERISA-compliant plan the employer might wish that they had sponsored a 401(k) plan.
Schools and hospitals may fall into this category.
We can help make a retirement plan easier for the employer (less administration, less cost, more predictable, more beneficial) whether the plan is a 401(k) or a 403(b).
Unfortunately, not every 403(b) will qualify for non-ERISA status. Those that do have non-ERISA status have much fewer regulations with less administrative burden. Specifically, non-ERISA plans are exempt from Title I of ERISA with fewer reporting, testing, and filing requirements.
An example of a non – ERISA plan is a “church plan” or Qualified Church Controlled Organization (QCCO). These plans do not have to A non-ERISA 403(b) or “church plan” or QCCO does not have to comply with the universal availability requirements and code sections 401(a)(4), 401(m), and 410(b). A “steeple church” exception is easier for compliance.
A non-QCCO is “church affiliated” (like a church affiliated hospital or retirement home. A non-QCCO is still qualified to participate in a church plan but most comply with universal availability, 401(a)(4), 401(m), and 410(b).
We specialize in serving non-ERISA 403(b) “church plans.” In fact, we have worked with ERISA counsel to help multiple organizations regain this status after accidentally opting into ERISA by complying with unnecessary regulations (like filing Form 5500). Perhaps your plan is carrying an unnecessary burden. We might be able to lighten the load.
[Note: Once an organization makes a 410(d) election to opt into ERISA, the decision is irreversible. An organization that might otherwise have qualified for non-ERISA 403(b) status may have adopted a regulatory framework with which they must now comply.]