4041 / What nondiscrimination requirements apply to a tax sheltered annuity plan that provides for contributions other than by salary reduction?

According to the final regulations, under IRC Section 403(b)(12)(A)(i), employer contributions and employee after-tax contributions must satisfy all of the following nondiscrimination requirements in the same manner as a qualified plan under IRC Section 401(a):

(1)  Section 401(a)(4), relating to nondiscrimination in contributions and benefits, taking Section 401(a)(5) into account

(2)  Section 401(a)(17), limiting the amount of compensation that can be taken into account

(3)  Section 401(m), relating to matching and after-tax employee contributions