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Ray K

457 Plan

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Not only does the chorus at the highly regarded benefitslink disagree with you, I have a few extra websites for your perusal

 

TIAA-CREF has a very clear outline: http://www.tiaa-cref.org/administrators/re...ison/index.html

 

You will notice that under "Section 415 Contribution Limits," it is clearly marked "Does not apply" under the 457 plan box.

 

Idaho's take on 457 limits: http://www.persi.idaho.gov/html/EMPLOYER/E...lities_2007.pdf

 

In a 401(k) plan or 403(b) plan, the employer contribution together with any voluntary contributions made by the participant may not exceed the participant's gross salary or $45,000 in 2007, whichever is less. The 415 limits are not applicable to 457 plans, which generally cannot receive employer contributions.

 

Prudential: You see the text distinctly refers to 403 and 401, but 457 is not included: http://www.prudential.com/media/managed/2007LimitsNFP.pdf

 

Contributions made to 403(b) arrangements and 401(k) plans are also subject to the limit on annual additions under Internal Revenue Code section 415, which applies to the combination of elective and employer contributions

 

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Guest Sierra

Based on all of the documentation why is it that not one of the professionals has suggested to the IRS that it needs to correct item number 3 on that list of 10 items? Carol Calhoun does not exclude 457 Plans in her chart pertaining to the 415 limits. Hopefully, this important difference will be noted by the pros and the regulators for 2008.

 

Peace and Hope,

Joel L. Frank

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Section 403:

 

(E) in the case of a contract purchased under a salary reduction agreement, the contract meets the requirements of section 401 (a)(30),

then contributions and other additions by such employer for such annuity contract shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such contributions and additions (when expressed as an annual addition (within the meaning of section 415 ©(2))) does not exceed the applicable limit under section 415.

You will find no such similar language in IRC Section 457 linking it to the limits within section 415.

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Guest Sierra

Section 403:

 

(E) in the case of a contract purchased under a salary reduction agreement, the contract meets the requirements of section 401 (a)(30),

then contributions and other additions by such employer for such annuity contract shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such contributions and additions (when expressed as an annual addition (within the meaning of section 415 ©(2))) does not exceed the applicable limit under section 415.

You will find no such similar language in IRC Section 457 linking it to the limits within section 415.

Thank you Vince for pasting that up. I too, have seen that the reference to 415 is not made under section 457.

 

Joel

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