403(b) Non-ERISA 403(b) ERISA 401(k) Safe Harbor 401(k) Traditional
Employer can Match? No Yes Yes Yes
Flexible eligibility? No No Yes Yes
Employers can auto-enroll? No Yes Yes Yes
ACP Test exempt? Yes No Yes No
ADP Test exempt? Yes Yes Yes No
Top Heavy Test exempt? Yes Yes Yes No
Annual 5500 filing exempt? Yes No No No
ERISA 403(b) Non-ERISA 403(b)
Allows employer contributions Yes No
Allows auto-enrollment Yes No
Universal Availability Required Required
Allows auto-enrollment Yes No
Requires annual 5500 Yes No
Large plan audit Yes No
ADP Test Exempt Exempt
ACP Test Required Exempt
Why nonprofit employees may prefer a 401(k) to a 403(b)
  403(b) Non-ERISA 403(b) ERISA 401(k)
Employers can match? Not allowed Yes Yes
Typical Investment Cost More expensive More expensive Cheaper
Automatic Savings No Yes Yes
Average participation 79% 79% 89%
2022 2023
Employee Contribution Limit $22,500 $20,500
50+ Catchup Contributions $7,500 $6,500
Employee Contributions Limit w/ 50+ Catch-Up $30,000 $27,000
Employer Contribution Limit 25% of plan eligible compensation Same as 2023
Max Plan Eligible Compensation $305,000 $350,000
Under 50 Total Contribution Limit (Employee + Employer) $66,000 $61,000
50+ Total Contribution Limit (Employee + employer) $73,500 $61,000
Highly Compensated Employee Threshold $150,000 $135,000