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non-profit, city-owned, utility companies and 401Ks


Guest itrade4u2

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Guest itrade4u2

Can anyone tell me if a non-profit utility company that is owned by a city government can start a 401k? I think that they can do a 457, but they would prefer to do a 401k.

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  • 2 weeks later...

Probably not. In most instances, such an entity would be treated as a governmental plan. Thus, unless that entity, or another entity treated as part of the same "employer" for federal tax purposes, had a grandfathered 401(k) plan, the entity could not start a 401(k) plan.

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