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  1. That would have been my recommendation. Unfortunately, this new client already terminated the 457(b) and distributed assets before we could advise them otherwise. Now, they are trying to figure out ways to get benefits to their top folks, and the 457(b) seems to be the best option for them. But, we have the issue of their termination of the prior plan so recently. Thanks for the advice re: benefitslink. Will try that as well.
  2. How long must a plan sponsor wait following a termination of its 457(b) plan (and distribution of all assets) before adopting a new 457(b) plan? 401(k) rules require the passage of at least 12 months from the distribution of assets before staring another 401(k) plan. 409A requires 3 years before adopting the same type of nonqualified plan. I cannot find a specific time frame for 457(b) plans. It seems logical that the IRS would suspect an improper attempt to accelerate payment of benefits if one plan was terminated and another started within a 12 month period. In this particular case, that was not the intent. However, I imagine the IRS would view it that way. Thoughts? Cites?
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