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SteveM

Municipalities Adding A 403(b) Plan When They Already Have A 457(b) Pl

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Are municipalities allowed to add a 403(b) plan if they already have a 457(b) plan like hospital districts are able to do?

 

 

Yes but govt entity must be eligible to establish a 403b plan such as municipal hospital or college. Municipal governments cannot establish a 403b plan for general govt employees.

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Guest Sierra

A municipal hospital must have a corporate existence separate from the municipality and it must be as a 501©(3) non-profit since the hospital is not an 170(b)(1)(A)(ii) educational organization. IRC Section 403(b)(1)(A).

 

A few years back, I helped a municipal hospital that had a 501©(3) corporate existence separate from the municipality when it started a 403b plan. In the meantime, the municipality dissolved that separate corporate existence for the hospital, rendering it a mere agency of the municipality like the water dept. The 403b plan was unwittingly continued.

 

We had to resolve the 'ineligible employer' issue through Bob Architect at the national office.

 

 

Hi J Simmons,

 

In New York there are many Public Benefit Corporations. The NYC Health and Hospitals Corporation is one of them and they have for many years sponsored a 403(b) thru Prudential Financial. The City also makes their Deferred Compensation 457(b) and 401(k) Plans available to employees of the HHC.

 

How's that for being well covered by the employer?

 

Peace and hope,

Joel

 

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Guest Sierra

A municipal hospital must have a corporate existence separate from the municipality and it must be as a 501©(3) non-profit since the hospital is not an 170(b)(1)(A)(ii) educational organization. IRC Section 403(b)(1)(A).

 

A few years back, I helped a municipal hospital that had a 501©(3) corporate existence separate from the municipality when it started a 403b plan. In the meantime, the municipality dissolved that separate corporate existence for the hospital, rendering it a mere agency of the municipality like the water dept. The 403b plan was unwittingly continued.

 

We had to resolve the 'ineligible employer' issue through Bob Architect at the national office.

 

Hi J Simmons,

 

In New York there are many Public Benefit Corporations. The NYC Health and Hospitals Corporation is one of them and they have for many years sponsored a 403(b) thru Prudential Financial. The City also makes their Deferred Compensation 457(b) and 401(k) Plans available to employees of the HHC.

 

How's that for being well covered by the employer?

 

Peace and hope,

Joel

 

Joel,

 

do they have a position for me as an employee? I want all those benefits!

 

And to really get our mouths to water the City's Deferred Comp Plan also offers: A Roth feature to their 401(k), as well as a Traditional and Roth IRA Program.

 

 

 

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