Last month, in Part 1 of this blog on 10 common mistakes in 457 plans sponsored by tax exempt organizations (EOs), I gave the first five common mistakes I’ve seen in my practice working with these sponsors. See “Ten Common Mistakes in 457 Plans of Tax Exempt Organizations–Part 1“. This Part 2 continues
Plans for Exempt Organizations
Ten Common Mistakes In 457 Plans of Tax Exempt Organizations–Part 1
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…
457 Plans Are Bipolar
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. …
Tax Exempt Organizations Must Amend 457(b) Plans By December 31 For Increased RMD Age
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…