Get more! Sign up for PLANSPONSOR newsletters.
Ask the Experts March 26, 2024
What Organizations Can Sponsor a 403(b) Plan?
Experts from Groom Law Group and CAPTRUST answer questions concerning retirement plan administration and regulations.
Reported by PS
Q: I work at a brand-new chamber of commerce organized under Section 501(c)(6) of the Internal Revenue Code. Can we sponsor a 403(b) plan? If not, what type of retirement plans can we sponsor?
Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:
A: This is an excellent question, as it is often a source of confusion. Although tax-exempt charitable organizations under Internal Revenue Code Section 501(c)(3) can sponsor a 403(b) plan, other types of 501(c) organizations, such as 501(c)(6) chambers of commerce, generally cannot.
However, 501(c)(6) organizations can sponsor other types of retirement plans, such as 401(a), 401(k) and 457(b) plans.
NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.
Do YOU have a question for the Experts? If so, we would love to hear from you! Simply forward your question to Amy.Resnick@issgovernance.com with Subject: Ask the Experts, and the Experts will do their best to answer your question in a future column.