Year end employment for match?

[Trekker]

I plead ignorance in advance. I do not work on 457(b) plans but had this question thrown my way.

May a 457(b) plan condition its match on last day employment? The plan is silent.

If permitted, am I correct that it is too late to amend for this for the 2014 calendar year?

I also just found out that there is a 403(b) plan. I do not know if the match is made to the 457(b) or the 403(b), so an answer covering both situations would be helpful.

Thank you!

[QDROphile]

You can do whatever you want in 457(b) plans, subject to contractual restraints. Contractual restraints are likely to restrict ability to make mid-year changes that diminish participant benefits. Whether anyone will assert a contract claim is another matter. Results may vary depending on whether or not the 457(b) plan is a government plan. I assume that your response to the question thrown your way will not be taken in any way as advice.

Although many apply 401(k) principles to 403(b) plans, the rules can be different. A last day provision is not in itself improper. There is no basis for retroactive amendment under 403(b) as there is under 401.

[Trekker]

Oh, you are so right that any response I give will be made clear that it is not advice!

[Trekker]

You can do whatever you want in 457(b) plans, subject to contractual restraints. Contractual restraints are likely to restrict ability to make mid-year changes that diminish participant benefits. Whether anyone will assert a contract claim is another matter. Results may vary depending on whether or not the 457(b) plan is a government plan. I assume that your response to the question thrown your way will not be taken in any way as advice.

Although many apply 401(k) principles to 403(b) plans, the rules can be different. A last day provision is not in itself improper. There is no basis for retroactive amendment under 403(b) as there is under 401.

Follow up question: What do you mean by 'contractual restraints'? Are you referring to plan document or another agreement?