Key Features of an ERISA 403(b)

Q. What are some key features of ERISA 403(b)?

A. Some key features and distinctions of ERISA 403(b)s include: 

• The 25-year service catch-up is performed. 
• Hardship distributions can be made by deferral only.
• Post-severance employer contributions can be made.
• Excise tax or Form 5500 filings due to late deferrals are not required.
• Elective deferral contributions are not subject to nondiscrimination testing
• The new long-term part-time employee rule is not applicable
• The employer does not own the contract in a custodial arrangement and the employer and cannot designate movement of funds between recordkeepers; individuals must make those designations.