Transcription of M. SECTION 457 DEFERRED COMPENSATION PLANS ... - IRS …
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M. SECTION 457 DEFERRED COMPENSATION PLANS OF STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT EMPLOYERS by Cheryl Press and Robert Patchell 1. Introduction SECTION 457 PLANS are nonqualified, unfunded DEFERRED COMPENSATION PLANS established by state and local government and tax-exempt employers. These employers can establish either eligible (covered by 457(b)) or ineligible (covered by 457(f)) PLANS , and are subject to the specific requirements and deferral limitations of SECTION 457 of the Internal Revenue Code of 1986 ("Code").
Aug 16, 1986 · 457(e)(2), 1.457-2(d). Corporations cannot be participants in a plan. (2) Select Group of Employees of Non-governmental Tax-exempt Entities While any employee or independent contractor of a governmental entity can be a participant, tax-exempt organizations that are non- governmental must
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