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Need 457 Advice

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  1. Also-- I appreciate your feedback and citing to that regulation, but what the regulation is telling us basically is that amounts are not counted against the contribution limits until they are vested. It does not tell us a default rule for WHEN the amounts actually vest, as far as I can tell... Am I missing that somehow? The examples show how if the employer contributions and employee contributions both vest in the same year, it can exceed the contribution limits and potentially cause problems... but both employer contributions and employee contributions are included in the "annual deferrals" amount that is defined in the regulation. Clearly, the rule is not that 100% of employer contributions vest immediately-- plans can provide otherwise if they choose to. The question is, do employee contributions need to vest immediately, or can they also have a vesting schedule or outside vesting date making them forfeitable? If not, what is the rule similar to a 411 rule that would apply to a 457 plan? And if the plan is silent, what is the default rule for when amounts vest?
  2. Unfortunately that does not help-- Maybe I need to rephrase the question... The issue is WHEN do amounts vest if the plan has no vesting schedule or provision saying vesting is immediate or vests on a certain date. The plan is SILENT. And nothing in the plan says anything is conditioned on the future performance of substantial services by the individual. So how can it be determined when amounts vest? If nothing in the plan subjects anything to substantial risk of forfeiture, is the default rule that 100% vests immediately, even if the plan is completely silent on that point?
  3. Thanks for the reply-- but where does it say that annual deferrals are 100% vested?
  4. I have a question about when amounts vest in participants' accounts if the plan is completely silent and does not have any vesting provision or vesting schedule. The plan says "the employer MAY pay amounts" when participants reach normal retirement age, separate from service, etc. It does not say anything specifically conditioning vesting on future performance of substantial services. If the plan is a 457(b) plan that does not say when amounts vest, when do amounts vest? If the plan is an ineligible 457(f) plan and amounts vest when no longer subject to a substantial risk of forfeiture, if the plan is silent about any conditions of future performance or non-compete conditions, what is the default for when the amounts vest? If you have any guidance, it would be appreciated. Thank you!!
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