Employer FAQ Information
If you are a school district currently working with The Omni Group, please refer to the frequently asked questions below. If a question doesn't provide enough information to help you or if you have a question not listed below, please contact us.
Click a question to see the information.
» What responsibilities does the district have as the employer under a salary reduction Section 403(b) program?
In the most typical case, the employer's only responsibilities are to ensure that contributions are properly remitted to the issuer of the employee's contract, and that the employee's W-2 income and tax withholding are properly adjusted.
» Must the employer adopt a formal plan document in order to establish a Section 403(b) program?
Many Section 403(b) programs have no formal plan document beyond individual salary reduction agreements and the individual contracts that are purchased under this program.
» What are the tax consequences if a Section 403(b) program fails to satisfy the applicable Code requirements?
The primary consequence ordinarily will be the employee's inclusion in gross income of the employer contribution.
» Are Section 403(b) limits imposed on a calendar-year basis or on a plan-year basis?
Generally, all limits are on a calendar year, not a plan-year, basis.
» What nondiscrimination rules apply to the district's 403(b) programs?
With respect to salary reduction contributions, a plan meets the nondiscrimination requirements so long as all employees of the district may elect to make salary reduction contributions of more than $2,000 per year.
» Can an employer indemnify a non-ERISA fiduciary?
Yes, a TPA may provide indemnification.
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