Is there a difference between what is termed a "401(k) top hat pl

[Guest Robin Davis]

I always thought that they were the same thing by different names but now I am wondering based on some messages that I have read.

Your thoughts will be appreciated.

[Guest Monster]

I've used the terms interchangeably though I don't know if that is correct or not.

(I'm also waiting to see if this posting works as my last one never appeared)

[Kirk Maldonado]

401(k) Top Hat Plan is a contradiction in terms. They are mutually inconsistent types of plans.

[Guest Monster]

Ooops! I'll have to read more carefully from now on. - I assumed that read 457. Would that be a contradiction in terms?

[Guest Robin Davis]

I'm sorry, I forget how literal attorneys are(grin)! What I was referring to is in the 401(k) topic section someone had some questions about their Top Hat plan. I have always thought that when someone talks about a Top Hat plan they are referring to a nonqualified deferred comp plan and was just making sure I am right in my thinking.

Monster - a 457 is a deferred comp plan, however, only for non-profit or governmental agencies. So, yes, the terms would be interchangeable when referring to a nonprofit or governmental agency.

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Robin Davis

D&D Benefits, L.L.C.

972-755-3327

[This message has been edited by Robin Davis (edited 01-06-2000).]

[Guest KLSusac]

A 401(k) top hat plan may be the name some are using to describe a nonqualified deferral plan that is being used to augment the deferral capacity of a 401(k) plan participant that has reached the limit. These plans are also called 401(k)Mirror Plans and a Wrap Around Plans.These plans are simply defined contribution nonqualified plans BUT differ from the old deferred compensation plans in that the investment benchmarks are clones of the investment options in the underlying qualified 401(k).

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KLSusac

[Guest Robin Davis]

Thanks, KL, that's what I thought but needed a little verification based on something I read in the 401(k) forum.

Again, thanks!

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Robin Davis

D&D Benefits, L.L.C.

972-755-3327