Have a non-profit asking:
They currently have a non-ERISA 403B program, and plan documents signed in 2012. 8 people participate, no-one puts over $3,000 into it. There is no employer match. Their current custodian is asking for new updated non-ERISA 403B plan adoption agreement – we’ll find one…..My question is can they stop the 403B, then offer either a Traditional or ROTH IRA to be deducted from their paychecks? Remember the employer doesn’t match. However the employer DOES contribute quarterly to a SEP for each employee, 4%. Each employee has a 403B, and a SEP. And….two employees won’t set up their SEP and refuse the contribution. I vote unwind the 403b! and bring education to the e/e’s so everyone has the SEP $. Thanks for advice and guidance.