Guest Sherrie Boutwell Posted January 22, 2001 Share Posted January 22, 2001 Does anyone have any thoughts on the application of the new minimum distribution rules to 457 plans? Specifically, whether participants may take advantage of the new rules prior to amendment of a 457 plan document? I do not see any specific guidance/model amendments, so I assume a 457 plan with old language would need to be amended to take advantage of the new rule? Link to comment Share on other sites More sharing options...
Guest Sherrie Boutwell Posted January 23, 2001 Share Posted January 23, 2001 Check out IRC section 457 - it is a form of deferred compensation plan that is available to governments/nonprofits. Link to comment Share on other sites More sharing options...
Guest Ralph Amadio Posted January 23, 2001 Share Posted January 23, 2001 Sherrie, as always, it is much safer to go by the letter of the plan document. If you mean by "amending the plan" updating for the new requirements for distributions, I would certainly wait for enabling language. On the other hand, if the amendments you refer to are, as I have discovered, a 457 just now being amended for SBJPA, then I would certainly discuss heavily with the plan sponsor and their counsel before making any changes. Link to comment Share on other sites More sharing options...
Guest Sherrie Boutwell Posted January 26, 2001 Share Posted January 26, 2001 Thanks, Ralph. By enabling language, are you referring to language in the statute or the plan? It seems to me that the statute incorporates 401(a)(9) by reference so I don't see the need for a statutory change. But, I agree that the plan will need amending. And, unlike IRAs and qualified plans, the Service did not provide any special rule to allow 457 plans to move forward without an amendment, although that does seem to be the Service's general intent with the proposed regs. And, my clients' participants are demanding relief under the new regs - they got a lot of press out here. Link to comment Share on other sites More sharing options...
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