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anitje

Are Non-Qualified Plans Required To Have Plan Documents?

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According to my benefits office:

"The hospital's Fidelity 457(b) is a non-qualified plan and has a very different set of distribution rules than the 457 plan you reference below. (We are not required to have a plan document on an employee contributed plan; only a summary plan description.)"

 

Is this true?

 

Thanks.

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Ok, I understand this situation. Yep its true because its a nonqualifed plan. Google nonqualified and qualified plans and you will understand also. I am not a pro in this area and I am just as mystified about all of the definitions in tax deferred retirement plans too.

 

OK, they gave you the money, would you like reinvest it for retirement? We can help you here.

Steve

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Ok, I understand this situation. Yep its true because its a nonqualifed plan. Google nonqualified and qualified plans and you will understand also. I am not a pro in this area and I am just as mystified about all of the definitions in tax deferred retirement plans too.

 

OK, they gave you the money, would you like reinvest it for retirement? We can help you here.

Steve

 

 

Thanks for the reply. From all the research I have done, I do not have the option of reinvesting in a tax-deferred retirement plan since it was in a non-governmental, nonqualified plan. So if I cannot prove them wrong in distributing the funds, I have to pay the taxes on the bulk sum in 2011.

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Ok, I understand this situation. Yep its true because its a nonqualifed plan. Google nonqualified and qualified plans and you will understand also. I am not a pro in this area and I am just as mystified about all of the definitions in tax deferred retirement plans too.

 

OK, they gave you the money, would you like reinvest it for retirement? We can help you here.

Steve

 

 

Thanks for the reply. From all the research I have done, I do not have the option of reinvesting in a tax-deferred retirement plan since it was in a non-governmental, nonqualified plan. So if I cannot prove them wrong in distributing the funds, I have to pay the taxes on the bulk sum in 2011.

 

Hi anitje,

Yes, I understand you have to pay the taxes and can't reinvest it in a tax deferred retirement plan. But you have money to invest, it’s still your retirement plan. Most of us have retirement after-tax money too. For example, you might want to consider a tax efficient fund such as an index fund or funds for tax efficiency going forward.

Just some thoughts,

Steve

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457(b) plans are required to have a written plan document, at least according to Treasury Regulation 1.457-3(a), it must be a written plan estabished and maintained by an eligible employer.

 

A full SPD (summary plan description) is not required.

 

See prior thread.

 

http://bwise.ibforums.com/index.php?showtopic=4087&view=findpost&p=25200

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