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457 testing 5500 ???


Guest Tom Freeman
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Guest Tom Freeman

Are salary deferral 457 plans required to perform non-discrimination testing?

Also are these plans required to complete a form 5500 or any other form?

Thanks for your help.

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Guest CVCalhoun

Section 457 plans are not subject to nondiscrimination testing. Also, like most other governmental plans (other than pretax health or life insurance premium plans or other flexible benefits plans), they are exempt from the Form 5500 requirement. See Announcement 82-146, 1982-47 I.R.B. 53.

Hope this helps!

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Guest Tom Freeman

Thank you for the response. Does anyone have an on-line source where I can get Announcement 82-146 as my printed references do not go that far back. Thanks again, - TF

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Guest CVCalhoun

Well, I couldn't find an online source for Announcement 82-146, so I made one. smile.gif If you click here, you will get to it.

[Note: This message was edited by CVCalhoun]

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  • 6 months later...

Aren't pre-tax health and pre-tax group term life plans currently exempt from the Form 5500 filing requirement (Notice 90-24)?

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Guest CVCalhoun

No. Notice 90-24 has the following to say about section 125 plans (which would include pre-tax health and life insurance plans):

    Section 120, Section 125 and Section 127 Plans

      Employers maintaining plans under sections 120, 125, or 127 that prior to the TRA '86 amendments were required by section 6039D of the Code to file an annual return, must continue to file Form 5500, Form 5500-C, or Form 5500-R, whichever is applicable, by the filing date of that return (generally, the last day of the 7th month after the plan year ends). However, these employers are not required to supply the additional information regarding highly compensated employees required by the section 1151 of TRA '86 amendments to section 6039D, for any plan year beginning before the Service issues further guidance on these expanded section 6039D reporting requirements. The expanded section 6039D reporting obligations for these plans will apply only to plan years beginning on or after the date of publication of further guidance.

Thus, such plans are subject to Form 5500 requirements.

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Employee benefits legal resource site

[Note: This message has been edited by CVCalhoun]

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