457(b) and 401(k)

[Guest ButchElfers]

Two country clubs have merged into one. The one club has a 401(k) plan the other club has a 457(B) Top Hat Plan.

1) Can they have both in place at the same time?

2) If so, can participants who are eligible for both plans contribute to both plans during the same plan year?

3) If they decide to stop the 457(B) plan, what can participants do with their account balances? Roll into an IRA?

4) Will having a 457(B) plan affect the testing (or anything else) for the 401(k) plan?

[mbozek]

1. yes

2. yes

3. recieve a distribution upon termination of the plan or termination of emploment-- no rollover is permitted however a tax free transfer to another 457(B) plan is permitted.

4. no