457 plans and form 5500

[Santo Gold]

I gathering up some information for a non-profit who might be interested in a 457 plan. Is there a 5500 filing requirement for either a 457f or 457b?

Thanks

[QDROphile]

457(b) and 457(f) arrangements tend not to be viable except as top hat plans or governmental plans because of ERISA requirments other than filing Form 5500.

[John Feldt ERPA CPC QPA]

If the non-profit wants to provide benefits primarily to upper management and HCEs, then a 457(b) plan could work. If they file a letter with the DOL when the plan is established, notifying the DOL of the existence of the plan, then no 5500 filing would be required (unless the laws/rules get changed).

Be careful - a 457(b) plan document for a non-profit company should have much different provisions than what you would see in a document for a 457(b) of a government employer.

I can't speak as to the 457(f) side of your question.

[Lori Friedman]

An exempt organization's I.R.C. Sec. 457 arrangement has no Form 5500 filing requirement as long as it keeps to its intended purpose -- to provide deferred compensation opportunities to "top hat" individuals. If the arrangement covers rank-and-file workers, it becomes subject to ERISA and is required to file a Form 5500.

[TLGeer]

An exempt organization's I.R.C. Sec. 457 arrangement has no Form 5500 filing requirement as long as it keeps to its intended purpose -- to provide deferred compensation opportunities to "top hat" individuals. If the arrangement covers rank-and-file workers, it becomes subject to ERISA and is required to file a Form 5500.

If the plan is governmental (in the ERISA sense) or a church plan, it can cover a broader group. The critical issue is for nongovernmental (in the 457 sense) 457(b)s and all 457(f)s to avoid ERISA funding rules. All proper 457(b)s and 457(f)s are fully ERISA exempt, and therefore have no 5500 requirement.

[jpod]

One minor caveat to the discussion of 457fs for non-profits: If it is not a "pension plan" as defined in ERISA (i.e., it does not provide for retirement benefits or for a deferral of compensation until termination of employment or beyond), there is no ERISA-related reason to limit participation to a top-hat group.

[Santo Gold]

Thank you for all the replys. After doing a little research, am I correct that a Form 990 is necessary to report deferrals for both types of plans? Due by 5/15 for calendar year entities?

Thanks

[jpod]

If (and only if) the 990 is otherwise required to be filed by the non-profit employer, then information concerning deferred compensation is requested on the schedule identifying officers' compensation.