The National Tax-Deferred Savings Association (NTSA) recently hosted their annual Summit via a virtual series of workshops on 403(b) and 457(b) retirement plan education. Our very own CEO, Mark Heisler, was the host of a workshop examining on one of the most frequently asked questions by Financial Advisors…

Which ERISA retirement plan is best suited for a 501(c)(3) organization: a 403(b) or a 401(k)?

During the session, Mark discussed the similarities and the differences between the two plan designs when working with a 501(c)(3) organization that is looking to establish a retirement plan for their employees. He paid particular attention to the different rules associated with non-discrimination testing, post severance employer contributions, and the excise tax correction for late deferrals. In the final analysis, the decision to recommend one plan design over the other comes down to the facts and circumstances of the organization. It is a matter of knowing the right questions to ask employers about the organization to arrive at a sound recommendation.

Interested in learning more about the difference between 403(b) and 401(k) plan designs?

Contact our team today and learn more about what plan design is right for your organization!