How can employers limit their involvement in a 403(b) plan?

Employers can limit their involvement in a 403(b) plan by making employer contributions non-mandatory. In a 403(b) plan, which is often used by non-profit organizations and educational institutions, employers are not required to make contributions on behalf of employees. By choosing not to contribute or by making their contributions optional, employers can minimize their financial commitment and administrative responsibilities associated with the plan. This approach allows employees to take greater control over their retirement savings while keeping the employer's involvement at a minimum.

The other options, while potentially relevant to the overall administration of a 403(b) plan, do not effectively limit employer involvement in the same way. Mandating employee contributions does not reduce employer involvement; instead, it increases the plan's obligations toward employees. Providing extensive benefit education enhances employee understanding and participation in the plan but does not limit employer responsibilities. Requiring annual audits increases oversight but is an administrative task that does not reduce employers' participation in contributing to the plan.