Jump to content
Sign in to follow this  
Guest J Simmons

Is A 457b A Plan Described In 219(g)(5)(a)(iii)?

Recommended Posts

Situation is this: Govt ER has a 457b plan with no service requirement. Govt ER also has a 401a plan with a 3 month service requirement. An EE wants to make a one time, irrevocable election under 1.401(k)-1(a)(3)(v). That requires the election be made before becoming eligible for any plan described in 219(g)(5)(A).


219(g)(5)(A) included "(iii) a plan established for its employees by the United States, by a State or political subdivision thereof, or by an agency or instrumentality of any of the foregoing". According to the 457 Answer Book, 4th Ed, at pp 1-15 and 2-13, it is suggested that a 457b plan does not fall under 219(g)(5)(A)(iii). If not, then the EE in the situation may make the irrevocable election during the first 3 months employed. Otherwise, the EE cannot make such an election have employment begins.


Does anyone know the citation of authority for the notion that a governmental 457b plan is not a 219(g)(5)(A)(iii) plan?


The last sentence of 219(g)(5)(A) says: "An eligible deferred compensation plan (within the meaning of section 457(b)) shall not be treated as a plan described in subparagraph (A)(iii)." This exempts governmental 457 plans.


Nongovernmental 457 plans are simply not on the basic list, so they are not 219(g)(5)(A) plans either.


Tom Geer

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Create New...