401(k) Availability for State and Local Governments

[Guest Joel Lee]

During what period of time were state and local governments permitted to establish 401(k) plans?

[mbozek]

Prior to some date in may or june of 1986.

[Guest Joel Lee]

mbozek,

To Clarify: When were public employers first allowed to offer 401(k)s and when was this authorization repealed.

Thank You,

Joel L. Frank

[mbozek]

IRS began issuing determination letters to public employers who established 401k plans in the 80s. The Tax reform act of 1986 revoked the right to issue determination letters for public plans adopted after may or june of 1986.