New York Charter School

[Guest Deflector]

I have a plan that is a Charter School from the New York State Board of Regents. They were told that they could not sponsor 457 plans. I researched and could not find anything prohibiting them from sponsoring a 457 plan. Does anyone know if they are prohibited and/or where I could find some information on this. Thanks.

[ERISAnut]

Typically, any non-profit may sponsor a 457(b) plan. Either it is a governmental 457(b) or a non-governmental 457(b) plan. The non-governmental 457(b) is commonly referred to as a top-hat plan.

Now, the individual you spoke to may have been trying to state that they may not establish a 403(b) plan; which is restricted to public education institutions and 501©(3) charitable organizations. If they are stating that the charter school is not a public education institution, then it would make sense that they cannot establish a 403(b).

Details are important. Unless I am missing something, this would be the only explanation that would make sense.

[Guest mjb]

I have a plan that is a Charter School from the New York State Board of Regents. They were told that they could not sponsor 457 plans. I researched and could not find anything prohibiting them from sponsoring a 457 plan. Does anyone know if they are prohibited and/or where I could find some information on this. Thanks.

Maybe there is something in the NY state law that authorizes charter schools which forbids the establishment of a 457 plan or a deferred comp plan. You need to review the incorporation documents and by laws for the charter school. Simplest way is to ask the person who told the school that they could not establish a charter school for the reason.

Generic references to the tax code provisions regarding adoption of a 457 or 403b plan are irrevalent.

[TLGeer]

Just to correct one item, educational organizations can be 501©(3) and then sponsor 403(b) plans.

There may be some peculiarity in how charter schools are organized that interferes with one or the other plan type.

Otherwise, I entirely agree with mjb.

[Guest Deflector]

Thank you for your response. I do not have contact with the prior administrator to ask them. My thinking was it was on the state level also. Does anyone know if it is limited on the state level or where I could find the by laws online.

[GBurns]

Before you go looking online, you have to first decide what to look for.

Is the charter school a non-profit ?

You can find that out from the school. To verify you might also check with the state Div of Corporations (or whatever it is called).

The school should also have copies of tax documents that should show status.

In any case, your question should have been directed to the person who said no, for explanation and support.