Groom of counsel David Ashner was featured in the PLANSPONSOR article, "Know Your DC Plans," where he examined the three types of defined contribution ("DC") plans and their benefits to tax-exempt, church, and governmental sponsors.
PLANSPONSOR reported that, according to Ashner, "A 457(b) used by a tax-exempt employer is 'a top-hat plan.'"
The outlet further reported that Ashner said that "403(b) plans, another DC plan type available to nonprofits and governmental institutions, are similar to 401(k)s. The primary trade-off is that 403(b)s have fewer testing and compliance requirements, while 401(k)s 'typically have a wider range of investment options.'"
Ashner agreed that "the main reason for a nonprofit or government employer to offer a 401(k) is the 'wider array of investment options,' such as CITs and the option of self-directed accounts," according to PLANSPONSOR.
To read the article, click here.