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Federal credit unions

Guest Steve C

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Guest Steve C

Here's one I never expected to ask...

I was looking through old CPE articles from IRS, and came across a 1979 article stating that:

"federal credit unions are considered to be instrumentalities of the United States, exempt from Federal income tax under the provisions of the Federal Credit Union Act, 12 U.S.C. S1768."

This reminded me of the definition of "governmental plan" in 414(d):

"…a plan established and maintained for its employees by the Government of the United States…or by any agency or instrumentality..."

So, should retirement plans sponsored by federal credit unions be treated as governmental plans?

I'll be shocked if the answer is yes. Thanks.

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  • 4 months later...
Guest Lawrence_Groves

Under a April 2004PLR the IRS is disallowing all Federal Credit Union Non-Qualified 457(f) Plans as being instrumentalities of the Federal Governmnet.

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