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Joy

457(b) A Pension Plan?

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Guest Sierra

Wow, the cool ignore feature does work - I can barely hear the muffled sounds now!

 

Okay, back to the original post:

 

First, is a 457(b) a pension plan in that it is a venue through which employees defer compensation to use post employment? In other words, can it be considered a pension plan in the most ______ sense of the phrase?

I think using "pension plan" as a common layman's term to indicate a venue or vehicle by which retirement benefits or assets are accumulated to be used post-employment is okay to use for a basic understanding. However, the words "pension plan" can and have a much deeper meaning with additional requirements attached to it, so I think a pension person might shy away from using exactly that terminology when discussing a 457(b) plan.

 

Second, the bwise FAQ on 457(b)s states, "Private plans — Non-governmental tax-exempt entity plans.

ERISA generally requires that a private retirement plan providing benefits to employees be funded by a trust or annuity contract. The rules, however, require that private 457(b) plans be unfunded in order to obtain tax benefits. Therefore, a plan will violate ERISA unless an exception applies. If a tax-exempt employer limits participation to a select group of management or highly compensated employees (or "top hat" group) then it is exempt from most ERISA requirements."

From what ERISA requirements are private - tax-exempt 457(b) plans NOT exempt?

This question has been answered (it's the benefits claim section of ERISA that they are not exempt from).

 

I hope this answers your two questions!

 

John,

 

Thank you for giving intruder an example of just how easy it is to stay on topic!

 

Having said that, why do you continue to refuse to address that part of intruder's answer to Joy that asserts that the distribution rules for non-profit 457(b) are the same as IRAs?

 

John: Will you join me in requesting that intruder delete that single sentence from his answer to Joy?

 

Peace and Hope,

Joel L. Frank

 

Joel

 

I described 457b plans as being subject to the distribution rules for IRAs under IRC 401(a)(9) to differentiate the payment rules under 457b plans from the rules for non qualified deferred comp plans of profit making employers under IRC 409A which are not subject to the distribution rules under IRC 401(a)(9), even though some plans subject to IRC 409A are also subject to ERISA.

 

Intruder:

 

Does this latest "contribution" of yours mean you retract your statment of January 28, 2008 addressed to John: undefined Thanks for your enlightened comment. I dont think anything can be done to prevent Joel's redundent rants for attention.undefined

 

Having said that and wiith respect, I cannot for the life of me understand your latest assertion. Maybe your co hort Mr. Feldt can interpret for all of us.

 

Having said that, I respectfully request that you go back to your original post to Joy and delete what you said, not what you meant to say. Please delete:

 

"Distributions are subject to the same distributions rules as IRAs"

 

Peace and hope,

Joel L. Frank

Pension Columnist

The Chief-Civil Service Leader

277 Broadway

New York, NY 10007

 

 

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Guest Sierra

 

Joel

 

I described 457b plans as being subject to the distribution rules for IRAs under IRC 401(a)(9) to differentiate the payment rules under 457b plans from the rules for non qualified deferred comp plans of profit making employers under IRC 409A which are not subject to the distribution rules under IRC 401(a)(9), even though some plans subject to IRC 409A are also subject to ERISA.

 

Intruder:

 

Insofar as you posted the WRONG information 5 days ago (January 25, 2008) and 4 days have gone by (January 26, 2008) since I respectfully CORRECTED you, I must be "SKEPTICAL" of the validity of your latest post, no?

 

Having said that and with all due respect I simply cannot understand what your latest statement means. I welcome the interpretation of other observers to these boards. That aside, does this mean you retract the following statements and you agree to delete them?

 

1. January 25, 2008: "Distributions are subject to the same distributions rules as IRAs."

 

2. January 28, 2008: "John: Thanks for your enlightened comment. I dont think anything can be done to prevent Joel's redundent rants for attention."

 

PLEASE DO NOT TAKE FIVE DAYS TO "RESEARCH" YOUR REPLY!

 

Peace and Hope,

JOEL L. FRANK

Pension Columnist

The Chief-Civil Service Leader

277 Broadway

New York, NY 10007

 

 

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