457(f)What are the different possible investments that are allowed by IRS?

[Guest Tadashi]

Please help, need answer asap...

[QDROphile]

The nature of your question indicates that you need to understand 457(f) basics. The employer promises to pay an amount. The amount is determined by the terms of the plan. How the employer comes up with the payment is up to the employer. If the employer decides to hedge its promise or create a sinking fund for its promise, the employer may be limited by constraints on investments that apply to the employer. The ability of the employer to hedge may affect how the employer designs the plan to the extent the terms include an earnings component for the amount payable. The IRS has nothing to do with it, except indirectly. For example, a very large earnings rate could be a problem under 501©(3) rules if the employer is a 501©(3) organization.