Employers
457(b)
This is a deferred compensation plan that is available to certain state and local governments as well as certain non-governmental entities tax exempt under IRC 501.
If your organization chooses to sponsor an eligible 457(b) plan, this will allow your employees to defer income taxation on retirement savings into future years. Should your plan be ineligible, your employees may be subject to different tax treatment under 457(f).
For example, the current annual limit for deferrals is the same as it is with 403(b) - $16,500 (in 2009). Employers can offer both 403(b) and 457(b) plans at the same time. If both are available to employees they can invest $16,500 into each one or $33,000 total.
If your organization chooses to sponsor an eligible 457(b) plan, this will allow your employees to defer income taxation on retirement savings into future years. Should your plan be ineligible, your employees may be subject to different tax treatment under 457(f).
For example, the current annual limit for deferrals is the same as it is with 403(b) - $16,500 (in 2009). Employers can offer both 403(b) and 457(b) plans at the same time. If both are available to employees they can invest $16,500 into each one or $33,000 total.
GGG Administrative Services for 457(b) plans:
- Plan Documents
- Fund or Vendor recordkeeping
- Consolidated Common Remitter (payroll to investment)
- Disbursements and tax reporting
- Limits testing (stand alone or with 403(b)