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JimK

Can An Employer Match Contributions?

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Can an employer match a percentage of your contributions to a 457 plan? I know with a 401k it is not uncommon for the employer to match contributions, but is it allowed with 457s? If anyone can direct me to information reguarding this topic I would appreciate it.

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Yes, an employer can match an employees 457(b) contribution. However, the maximum contribution for a participant is limiited to the applicable amount for the year--$13,000 for 2004. The example under IT Regulations 1.457-4 addresses the employer match.

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I tried attaching a copy of the final IRC 457 regulations, but I could not get it to go through. Go to the www.irs.gov/ep website and search for them as Final 457 regulations. When that search comes up go to the IRB 2003-39, that will bring up the regulations. There are other articles on there also. You can also submit questions through that website, just be sure to include your telephone number.

 

 

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Guest Sierra

Yes, an employer can match an employees 457(b) contribution. However, the maximum contribution for a participant is limiited to the applicable amount for the year--$13,000 for 2004. The example under IT Regulations 1.457-4 addresses the employer match.

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$13,000 is the maximum elective deferral. The er match is not inclusive of this $13,000 limit.

 

Peace and Hope,

Joel

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Yes, an employer can match an employees 457(b) contribution. However, the maximum contribution for a participant is limiited to the applicable amount for the year--$13,000 for 2004. The example under IT Regulations 1.457-4 addresses the employer match.

--------------------------------------------------------------------------------------

$13,000 is the maximum elective deferral. The er match is not inclusive of this $13,000 limit.

 

Peace and Hope,

Joel

Hi Joel,

 

Doesn't that depend on whether we're speaking of a governmental or a non-profit 457(b) plan?

 

Take care,

Jeffrey

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Guest Sierra

Jeffrey,

 

For governments and non-governments the contribution limits (er and salary deferral) are the same.

 

Peace and Hope,

Joel

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Yes, an employer can match an employees 457(b) contribution. However, the maximum contribution for a participant is limiited to the applicable amount for the year--$13,000 for 2004. The example under IT Regulations 1.457-4 addresses the employer match.

--------------------------------------------------------------------------------------

$13,000 is the maximum elective deferral. The er match is not inclusive of this $13,000 limit.

 

Peace and Hope,

Joel

Hi Joel,

 

Are you saying that an employee can defer $13,000 AND the employer can match up to another $13,000 if they so choose?

 

Thanks,

Jeffrey

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Guest Sierra

The combined maximum is $41,000 for 2004 and $42,000 for 2005 or 100 percent of the ee's salary which ever is less.

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The combined maximum is $41,000 for 2004 and $42,000 for 2005 or 100 percent of the ee's salary which ever is less.

Hi Joel,

 

I've never heard that about 457(b)'s before. Can you show me or direct me to your source, so i can supply it to my investment provider in order to take full advantage?

 

Thanks,

Jeffrey

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Joel, I respectfully disagree. Under I.R.C. Sec. 457(b)(2), deferrals made both by or on behalf of a 457(b) participant are limited to $13,000 in 2004 (excluding catch-up contributions). The Sec. 415 limitation isn't a factor.

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