Federal government plans and 401(a)

[Flyboyjohn]

I'm going to demonstrate a lot of ignorance but here's what I "think" the rules are:

1. Governmental plans are exempt from ERISA

2. State and local governmental plans can (and usually do) obtain a DL saying they are qualified under 401(a) so their employees have some certainty as to their tax consequences

If OK so far now to my question: do Federal government plans also have DLs or is there something somewhere that says they're 401(a) qualified?

Question is coming up under the new section 1411 Net Investment Income Tax where the regs are exempting distributions from plans qualified under 401(a).

Thanks

[Flyboyjohn]

I'm reposting in hopes there's a guru amongst us who missed the first post, bottom line question is whether Federal government retirement programs (and in particular US military retirement pensions) are considered to be 401(a) qualified plans.

[shERPA]

According to this Fact Sheet, "IRC 7701(j) states that the TSP [Federal Thrift Savings Plan] is to be treated as a trust described in 401(a)..."

I think this answers your question WRT the TSP, for the military, pub 525 says military pensions are reported as income on the pension income line of 1040, since there is no separate line for military retirement income presumably military plans are also treats as 401(a), though I don't have a specific cite for this.

https://www.tsp.gov/PDF/formspubs/oc94-20.pdf‎

[david rigby]

I wonder what would happen if a participant asked to see a copy of the determination letter.

[John Feldt ERPA CPC QPA]

I am not too sure that "most" governmental plans apply for D letters. Could be, but it seems less likely from my own experience with gov't plans.