K-t-F Posted February 27, 2013 Share Posted February 27, 2013 I have the opportunity to take on a small 457(b) plan and want to understand them before I agree. Is there a pretty good source, a 457(b) plans for dummies source, that will educate me on the finer points of this type of plan? Can anyone throw out some areas that I should watch out for with regards to these plans? thanks Its not easy being green Link to comment Share on other sites More sharing options...
Belgarath Posted February 27, 2013 Share Posted February 27, 2013 Sal's EOB is a very good source. I'd watch the distinctions between governmental and tax-exempt plans, as there are a few that are important. Documents can be a little tricky, depending upon your provider, as there aren't "prototypes" - Sungard, for example, has one sort of modeled on a prototype, but it is a collection of Word documents that you may have to modify - sometimes extensively. Distribution forms can be screwy and require a lot of customizing as well. Other providers may specialize in this a bit more - I don't know. You are also frequently dealing with clients who may not have qualified plans, so will be even more clueless on admin items than clients are in general. For a tax exempt, make sure you do the top hat filing with the DOL. Obviously, there are other issues as well. Really, I think Sal's book will get you up and running pretty well. Link to comment Share on other sites More sharing options...
K-t-F Posted February 27, 2013 Author Share Posted February 27, 2013 I dont have the EOB... I did find § 1.457-1 through § 1.457-12 online and saved them. Ill look them over and refine my post. Regarding a written document, § 1.457-3 says this: § 1.457-3 General introduction to eligible plans. (a) Compliance in form and operation. An eligible plan is a written plan established and maintained by an eligible employer that is maintained, in both form and operation, in accordance with the requirements of §§1.457–4 through 1.457–10. An eligible plan must contain all the material terms and conditions for benefits under the plan I have seen posts that say a 457(b) plan does not need a plan document. There must be different types? or are people just wrong? Im using the FT William doc now, dont currently subscribe to the 457 doc. I think they have a "prototype format" doc (dont quote me) similar to their VS "prototype format" doc. Ill ask. Thanks Its not easy being green Link to comment Share on other sites More sharing options...
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