FICA/FUTA on 457(b) Distributions

[Guest Golden Girl]

Not for Profit Plan

Plan is distribuitng 457 deferal account. Actual deferrals from pay were already taxed for FICA/FUTA when made/

Are the earnings on the deferrals subject to FICA/FUTA or are they somehow exempted?

Thanks

[Belgarath]

Assuming that as you said, they were subject to FICA/FUTA when deferred, then upon distribution, the gain is not taxed. See IRC 3121(v)(2)(B) and IRC 3306®(2)(B).