Trouble Ahead for the Non-ERISA 403(b) Plan

There is still a lot of confusion out there about how the non-ERISA safe harbor works.  Many people over simplify the rules and assume if there is no employer contribution that you will be a non-ERISA 403(b) plan. That couldn’t be further from the truth.  If there is any active involvement of the employer, it likely crosses the ERISA line.

This blog by Bob Toth is an excellent example showing enforcement by the Department of Labor, and that it’s pretty tough to toe that fine line.

 

In addition to blogging here, I also tweet regularly about topics of interest to Tax Exempt plans. Follow me on Twitter: @1aaronfriedman1.

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Affiliation Disclosures 

Insurance products and plan administrative services are provided by Principal Life Insurance Company, a member of the Principal Financial Group® (The Principal®), Des Moines, IA 50392.

© 2014 Principal Financial Services, Inc.

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