403b – A Basic Guide

Course Description:

All 403b plans must undergo a series of annual tests. The type of tests required for your plan will partly depend on the features and options outlined in your plan document. Some tests involve making sure simple limits are not exceeded. Others are designed to ensure that (Officers, Directors, Key Employees, etc.) don't receive a majority of the benefits available in the plan: These are tests referred to as Anti-discrimination tests. Officers, Directors and Key employees are referred to as Highly Compensated Employees (HCEs). Congress defines an HCE as anyone who makes more than $105,000 in 2008 - Please refer to the Statutory Limits Table for more details about annual HCE limits. Some Anti-discrimination tests attempt to make 403b plans more equitable by placing restrictions on how much an HCE can receive in company contributions. These restrictions are generally based on the benefits Non-HCEs are receiving.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Perform Universal Availability tests, Maximum Deferral Limit test, Annual Limitations test, and the ACP test.
• Understand the Coverage test and the Gateway Minimum test.