jlf Posted July 11, 2001 Posted July 11, 2001 Are 401(k) plans allowed to be offered by all units, agencies of state and local government?
Guest Tom Geer Posted July 12, 2001 Posted July 12, 2001 401(k)(4)(B) says no governmental 401(k)s, other than rural cooperatives and indian tribal governments. These is also grandfathering for older plans. They do get 457 and school systems get 403(B)s.
jlf Posted July 13, 2001 Author Posted July 13, 2001 Tom....Please clarify...the state of California operates a 401(k) for its employees.........and NYC is about to offer one. What's going on. Best wishes, Joel L. Frank
MGB Posted July 13, 2001 Posted July 13, 2001 Tom mentioned the grandfathering. There was a short period in the '80s whereby a public employer could set one up. Then they took that away again, but those that had set it up could keep them. That would have included all state, local and instrumentalities (e.g., port authorities and other transportation quasi-governmental organizations). I assume that is when California put one in. Just last week I was reading a letter ruling that allowed a new one, but that had to do with very specific circumstances of the parent municipality having one and letting an instrumentality of them set up a new one (I don't recall the exact situation). As for NYC, do you have more information? Are you sure it is a 401(k) and is new for that unit? In general, they cannot set up new ones.
david rigby Posted July 13, 2001 Posted July 13, 2001 NC has a grandfathered one. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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