Public School hositng 457 does not have to be the owner of the plan?

[Guest getaxa]

I just heard that Nationwide has a plan document that some how gets around the Public school being the owner of the 457 plan? I thought the entity that hosted a governmental 457(B) plan had to be the owner of the plan, did that change with EGTRRA and if so where does it say that? Any help would be great!

[Michael Devault]

I believe that this was changed by the Small Business Job Protection Act of 1996. Amounts deferred under a deferred compensation plan maintained by a state or local government must be held in a trust (or custodial account) for the benefit of the plan participants.

Look at IRC section 457(g).

Hope this helps.