Non Governmental 457 Plan

[Nassau]

On December 23, 2008, President Bush signed into law the "Workers, Retiree, and Employer Recovery Act of 2008." One major provision of the law allows for the suspension of required minimum distributions (RMDs) from tax-deferred retirement accounts for 2009. Plan participants who are financially able to forgo their distributions may chose to suspend the 2009 RMDs so that they don't have to sell investments that may have fallen substantially in value.

Does the Workers, Retiree, and Employer Recovery Act of 2008 apply to non governmental 457 (b) Plans? Meaning that plan participants' can suspend their required minimum distributions (RMDs) for 2009?

[Guest kprhok]

On December 23, 2008, President Bush signed into law the "Workers, Retiree, and Employer Recovery Act of 2008." One major provision of the law allows for the suspension of required minimum distributions (RMDs) from tax-deferred retirement accounts for 2009. Plan participants who are financially able to forgo their distributions may chose to suspend the 2009 RMDs so that they don't have to sell investments that may have fallen substantially in value.

Does the Workers, Retiree, and Employer Recovery Act of 2008 apply to non governmental 457 (b) Plans? Meaning that plan participants' can suspend their required minimum distributions (RMDs) for 2009?

This is what I found in the Act. It appears to waive for 457(b) governmental plans only (those under 457(e)(1)(A). I am not sure why non-governmental 457(b) arrangements are carved out, and am also trying to find more on this, so if anyone has more, please reply. Thanks!

.TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS

SEC. 201. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES FOR CERTAIN RETIREMENT PLANS AND ACCOUNTS.

(a) In General- Section 401(a)(9) of the Internal Revenue Code of 1986 (relating to required distributions) is amended by adding at the end the following new subparagraph:

‘(H) TEMPORARY WAIVER OF MINIMUM REQUIRED DISTRIBUTION-

‘(i) IN GENERAL- The requirements of this paragraph shall not apply for calendar year 2009 to--

‘(I) a defined contribution plan which is described in this subsection or in section 403(a) or 403(b),

‘(II) a defined contribution plan which is an eligible deferred compensation plan described in section 457(b) but only if such plan is maintained by an employer described in section 457(e)(1)(A), or

‘(III) an individual retirement plan.