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Government with a 401(k) Plan


Guest mmagidson

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Guest mmagidson

If a governmental entity has a grandfathered 401(k) plan, is that plan subject to ERISA (i.e., Title I) or is it exempt because the sponsor is a government (a political subdivision of a state)?

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It is exempt from all portions of ERISA other than the portions of ERISA Title II (the Internal Revenue Code provisions) that apply to governmental plans. The governmental exemption found in ERISA section 4(B)(1) (29 USC 1003(B)) would apply to it.

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The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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