Tax Exempt Plans

457(b) - Tax-Exempt Organizations (Non-Church)

A 457(b) plan for non-church, tax-exempt organizations allows the employer, a select group of management or highly compensated employees and independent contractors to contribute to the plan.  

Consult a benefit plan advisor to set up a 457(b) plan for a non-church, tax-exempt organization.

457(b) plan on IRS.gov

 

 
  • Can only be set up by tax-exempt organizations (non-church)
  • Participant's retirement benefits based on participant’s account balance
  • Allows select group of management or highly compensated employees and independent contractors to contribute to their own retirement by deferring compensation, up to $17,5001 or more for 3 years prior to normal retirement age
  • Plan may allow employer contributions
  • The maximum combined annual contributions are the lesser of 100% of includible compensation or $17,5001 and more for 3 years prior to normal retirement age
  • May cover select group of management or highly compensated employees and independent contractors in the plan
  • The Plan may not make loans
  • All contributions are subject to claims of creditors 
1Dollar limits are for 2013 and are subject to cost-of-living adjustments for future years.

Maintaining a plan on IRS.gov

 

 

Correcting Plan Errors on IRS.gov

 

 

 

 

 ADDITIONAL RESOURCES