Plans for Exempt Organizations

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Most tax-advantaged retirement plans have at least until the end of 2026 to adopt amendments required by the legislation known as SECURE and SECURE 2.0. However, tax exempt organizations are different when it comes to 457(b) plans. This is because such plans were neglected and excluded from the IRS Notice that extended the amendment deadline…

In May, I blogged how 457 plans are bipolar in two ways. First, Internal Revenue Code (Code) section 457 describes the tax consequences of unfunded deferred compensation plans for both tax exempt organizations and state and local governments and the rules for each are quite different. Second, it describes the income tax consequences of eligible…

Anyone who has ever dealt with Internal Revenue Code section 457 and the deferred compensation plans authorized by it will understand the title to this article.   Code section 457 describes the tax consequences of two kinds of plans:  eligible deferred compensation plans (457(b) plans) and ineligible plans (457(f) plans). The two have very different tax consequences. …

The deadlines for amending many retirement plans for recent changes in the law under the CARES Act and SECURE Act have been extended to December 31, 2025 (governmental qualified or 457(b) plans or a 403(b) plan for public school employees deadline is generally within 90 days after the legislative body with authority to amend the…