start up 457(b) and 457(f)

[Guest willow100]

I have a client that is looking to start up a 457(b) and 457(f) plan. They will have maybe 20-30 people

in the b and 1 person in the f plan.

They are a non-for-profit enitity and have both a 403(b) and a 401(k). We will look at their 403(b) provider, but their 401(k) provider does not do non-qualified plans.

I have checked with a few firms and most have said no. So far Principal has said yes.

Please let me know if you aware of a non-qual administration firm who will do these start up plans?

Thanking you in advance!!!!

willow

[davef]

Unless your client is a governmental entity, how can you cover that many employees under the 457(b) plan? It should be a top-hat plan in order to avoid the various ERISA rules.

[Guest willow100]

My understanding is that has long as it is only offered to only for highly compensated and management employees that the number of participants doesn't matter.

Thanks,

willow

[John Feldt ERPA CPC QPA]

I think Nationwide has a platform to handle 457(b) plans, but they usually use a TPA firm to do the admin work.

Make sure the 457(b) only covers a select group of management employees, be careful.

We use a law firm to draft the documents for the 457(f) plans.

edited for typo.

[davef]

That's correct. But I was assuming that a not for profit org would not have that many "top hat" employees. Seemed like a lot. If they all fit under the top hat definition (as nebulous as it is), then it should be OK.