Is the city's matching deferred comp in a 457 plan part of the total 8

[Guest Curtis L. Walsh]

Another question concerning the 457 DCP that my employer offers. Again I work for a municipal fire department of which the city contributes 4% of top step firefighter toward our 457 deferred comp plan. I have called several entities and have been given several answers to this question. Does the 8k maximum contribution as afforded by a 457 DCP include the employer match? Or can the employee contribute 8k and also have the 4% match invested? It should be known that the city's 4% match is not includable in our annual gross income as defined in section 457.

[Guest JWBrown]

I believe that the match would not count toward the $8000. I'm assuming that your deferrals are in the 457, while the match is within the context of a 401(a) plan (since 457 doesn't really accomodate such a contribution). Given that situation, the match would be subject the sec. 415 test, but it would not be included in the test for 457 contributions.