Should we try?

[Guest m.n.ouellette]

Hi All. I have a prospective client that has a 457 to administer. We only specialize in DC plans. For those of you who administer both, is it a smooth transition, or not worth undertaking? We don't mond new challenges, but you gotta draw the line somewhere!

Thanks for any advice.

[Guest Joel Lee]

A 457 is a DC plan.

[Ron Snyder]

I suggest that you ask your software vendor whether your software handles 457 administration. Of course any software that handles DC plans will track the accounts, but you need to be comfortable with your ability automatically to track and check allocation limits, non-discrimination rules and other requirements of 457 plans as well as track account balances. [by the way, the rules and limits are minimal.]

Is it a governmental or a tax-exempt 457 plan? The rules are different.

[Guest m.n.ouellette]

Thanks for the replies!

mn

[Guest flogger]

A 457 can be either DB or DC. What is this plan? Is it a for-profit or non-profit sponsor?

There are a lot of differences between Q and Non-Q plan admin. We have unsuccessfully tried to get ASC to work as a Non-Q platform. This would work if we had better programming abilities, but it's taking some time.

My advise is to stay away unless you understand what needs to be done. The Non-Q plan admin is actually easier than that for Qualified, but almost as arcane.