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Eligible 457 Top Hat?


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Posted

Can a non profit employer (nongovermental) establish an eligible 457(B) plan for a top hat group? Contributions will not exceed amount for which ineligible, 457(f) plan is required. Is this practical, where employer intends to make contributions as percentage of income, rather than to allow deferrals??

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Posted

Absolutely! There is no requirement that a 457(B) plan have employee contributions. And a 457(B) plan for a tax-exempt organization (other than a governmental organization) must be a top hat plan, since otherwise, ERISA would require funding the plan, which would eliminate its 457(B) status.

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Employee benefits legal resource site

Employee benefits legal resource site

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