General Questions
Who can establish a 457(b) plan?
The organization must be a state or local government or a tax-exempt organization under IRC 501(c).
How do 457(b) plans work?
Employers or employees through salary reductions contribute up to the IRC 402(g) limit ($15,500 in 2008, $16,500 in 2009) on behalf of participants under the plan.
What are the advantages of participating in a 457(b) plan?
There are significant tax advantages for participants in a 457(b) plan:
- Contributions to a 457(b) plan are tax-deferred.
- Earnings on the retirement money are tax-deferred.
Publications:
Pub. 4484, Choose a retirement plan for employees of tax-exempt and government entities (schools, hospitals, churches, charities
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Resources:
Guidance:
457 Final Regulations (T.D. 9075)
Issued July 11, 2003 with a retroactive effective date of January 01, 2002, these regulations encompass the changes made by legislation from the two decades.
Rev. Proc. 2004-56, 457(b) Model Language
Related Guidance:
Notice 2007-7, Pension Protection Act Guidance
Final 415 Regulations
Notice 2005-5, Automatic Rollover
Rev. Rul. 2004-57, Union Administered 457 Plan
Rev Rul 2004-12, Rollovers to Eligible Retirement Plans
Notice 2003-20, 457(b) Reporting Requirements
Rev Rul 2001-51, EGTRRA Changes to IRC 415 Requirements
Announcement 2001-106, Tax Credit for Retirement Plan Contributions for Low-Income Savers
Notice 2001-56 , EGTRRA Changes to Compensation Limits
IRC 501(c)(3)
Prior Law Guidance
EP Exam will be reviewing 457(b) plans under pre-regulation guidance and interpretation for years before 2008.
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