sponsoring § 401(a) or § 403(b) plans. Controlled Group Rules for Tax Exempt Entities - Tax exempt entities under Code § 501(c)(3) (such as charitable trusts or foundations) that sponsor § 401(a) or § 403(b) plans are treated as a single employer under the controlled group rules. This can apply to multiple § 501(c)(3) 2020 403(b) vs. 401(k) comparison chart Feature 403(b) 401(k) Eligible employer Educational organizations and nonprofit organizations under 501(c)(3) of the IRCAny employer Eligible employees All employees but may exclude: • Employees who work less than 20 hours per week • Professors on sabbaticals • Certain students Issue Snapshot - 403(b) Universal Availability Requirement. A 403(b) plan must satisfy the universal availability requirement with respect to elective deferrals. All employees of the employer must be eligible to make elective deferrals if any employee has the right to do so, with certain limited exceptions. Jan 14, 2017 · The requirements for these loans are very exacting if you miss even one payment it could trigger a default on the loan which would allow the IRS to declare a default and penalize you an early withdrawal penalty. Employers can offer contributions matches on a 403b. This is a huge benefit that you should be sure to take advantage of.