Irc Section 457

Issue snapshot irc section 457 b eligible deferred compensation plan written plan requirements.

Irc section 457. Under section 457 c 2 amounts excluded from income under certain types of plans must be treated as amounts deferred under section 457 and therefore counted against the 7500 annual limitation or the 457 b 3 15 000 catch up limitation. The taxable year in which there is no substantial risk of forfeiture of the rights to such compensation determined in the same manner as determined for purposes of section 457a of the internal revenue code of 1986 as added by this section. Internal revenue code 457.

Irc section 457 the organization must be a state or local government or a tax exempt organization under irc section 501 c. Generally speaking 457 plans are non qualified tax advantaged deferred compensation retirement plans offered by state governments local governments and some nonprofit employers. Deferred compensation plans of state and local governments and tax exempt organizations.

Generally for years beginning after 12 31 2001 an eligible deferred compensation plan under irc section 457 b or section 457 plan must meet the written plan document requirements. Code unannotated title 26. These plans are other section 457 plans section 401 k cash or.

3 accelerated payments. Some examples of failures are of a charitable hospital with a 403 b plan being taken over by a local government entity and not terminating the 403 b plan and of quasi federal government organizations adopting irc section 457 type plans. The plan must comply in form and operation with the requirements of the code and regulation.

457 a 1 a. Plans of deferred compensation described in irc section 457 are available for certain state and local governments and non governmental entities tax exempt under irc section 501. Except as provided in subparagraph b the application of section 457 of the internal revenue code of 1986 by reason of the amendments made by this section to deferred compensation plans established and maintained by organizations exempt from tax shall apply to taxable years beginning after december 31 1986.

They can be either eligible plans under irc 457 b or ineligible plans under irc 457 f.