457 Plan as FICA Alternative
Posted 08 June 1999 - 02:52 PM
It appears to me that this strategy should work, with one possible exception. Section 457(B)(4) states that a plan must provide that "compensation will be deferred for any calendar month only if an agreement providing for such deferral has been entered into before the beginning of such month." If part-time and temporary employees are required to defer 7.5% of their wages as a condition of employment, does this satisfy the requirement of an "agreement providing for such deferral"?
I would appreciate any comments or help from anyone who has looked into this issue.
Posted 10 June 1999 - 05:51 PM
Employee benefits legal resource site
Posted 12 September 1999 - 10:11 PM
Posted 15 September 1999 - 11:55 AM
It seems to me that there is also a requirement that the employees vote on the FICA drop.
Isn't there also a requirement for employer contributions?
Also, does a 457 plan meet the definition of retirement plan?
Posted 16 September 1999 - 01:28 AM