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Generally, 403(b) plans must meet most of the same nondiscrimination requirements that apply to other types of plans, such as coverage and general nondiscrimination. And contributory 403(b) plans must also meet Matching Test requirements although they are not subject to the Actual Deferral Percentage (ADP) test that 401(k) plans must satisfy. But noncontributory 403(b) plans meet all nondiscrimination requirements without having to conduct the statutory tests such as coverage and general nondiscrimination if they qualify under one or more of the 89-23 Transitional Safe Harbors. And contributory 403(b) plans are exempt from Matching Test requirements if they qualify under one of the Design-Based Safe Harbors and do not permit after-tax employee contributions.

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