While the option is available it is not known how prevalent or if any 403(b) plan has been started or amended to be ERISA-qualified.
While they are different in some fundamental ways, qualified and unqualified plans appear almost the same to the participant and the options available are very similar.
The only important differences for the participants are some additional ways that they can withdraw employer money, not salary-deferral money, before the typical 59½ age restriction, but only if the plan is funded with annuities and not mutual funds.
The federal government wants to eliminate this difference in proposed regulations expected to be finalized in 2007.
403(b) plans are instead subject to universal availability which, briefly and in general, means all employees must be permitted to make salary-deferral contributions.
If a person has taken a 403(b) plan and their age is less than 59½, then they cannot initiate an early withdrawal unless they can demonstrate a triggering event such as financial hardship, disability, or separation from service.
Mich. 2001) Judge Spector held that the fixed-income annuity was not such a trust and could be reached by creditors.
Some critics argued that this is disparate treatment of similar pension schemes and that more consistent protection was called for.