What is the ERISA Title One 403(b)?

    The ERISA Title One 403(b) is an employer-sponsored retirement plan for 501(c)(3) organizations. These plans are subject to the annual
    governmental testing and reporting requirements of Title One of ERISA.

    ERISA Title One 403(b)

    At A Glance




















    ERISA Title One 403(b) Benefits

    Employer Benefits
    •        Design an arrangement similar to a 401(k) that includes matching contributions and other employer contributions.
    •        Attract and retain quality employees.
    •        Improved employee morale, productivity and employer/employee relations.

    Employee Benefits
    •        Save for retirement with pre-tax dollars.
    •        Earnings are tax deferred until withdrawn.
    •        Contribution limits are greater than those of IRAs.
    •        Contribution amounts are flexible.
    •        Special salary-deferral contribution limits for tenured employees may allow for greater retirement savings.
ERISA Title One 403(b)
Administrator Testing   
Required annually.
Establishment  
New plans must be established by the employer’s fiscal year end.
Employee Contribution Limit
Maximum employee deferral is the lesser of 100 percent of income or $16,500.
Catch-up Contribution  
Catch-up provision of up to $5,500 for participants age 50 or older.
Employer Contributions
25% company limit on discretionary and matching contributions
Loans Available
Yes
Total Employee/Employer Max Contribution
2010 plan year: $49,000.
Total Employee/Employer Max Contribution with Catch Up
2010 plan year: $54,500.
Employee Eligibility Requirements
One year with 1,000 hours of service AND 21 years old.
Vesting
Employee contributions are 100 percent vested.
Employer contributions may be subject to a vesting schedule if elected by the
employer in the Plan Adoption Agreement.
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