457(b) and 457(f)

[Guest Narcisso]

Is is possible for a 501©3 organization to have both a 457(b) and a 457(f), with the later limited exclusively to the CEO - so that the CEO could benefit from both plans simultaneously and the senior execs would benefit only from the 457(b)? We also currently have a Defined Contribution plan and supplemental 403b plan for all employees.

[E as in ERISA]

Yes. Since 457(f) has a requirement of substantial risk of forfeiture (vesting), it actually fits better with an employer-funded benefit as opposed to the employee's money -- and that would be expected to be limited to a smaller group of executives or even just one executive -- and used as a golden handcuff.

[Guest Narcisso]

Thanks - so to clarify, you could offer the 457 (b) which allows a selected group of highly compensated staff to shelter up to $14,000 (+4000 catch-up) from their existing salaries, and then offer the 457(f) with the employer contribution only to the CEO?

[mbozek]

There is no over 50 catch up for 457(b) plans of NP employers which limits deferrals to 14k.