Recommendations for 457 Plan Documents

Good afternoon.

I am looking for some recommendations for vendors who can provide plan documents and other services for starting a 457b plan for a small charity where there will be less than 5 participants (probably just 2-3).

Thank you,

457(b) plans are designed to provide governmental employers the opportunity to sponsor salary deferral plans for their workers since governmental employers are mostly precluded from offering 401(k) plans.  Are sure you mean 457(b)? 

457(b) plans can also be set up for NFPs (not for profit) orgs and a charity would normally fit this mold. Most TPA firms have access to building 457(b) documents.  I am not soliciting business, but I use Ft William for my 457(b) documents and I know that Relius also has 457(b) documents for NFPs.  Obviosly TPAs are in business to make a living so they are not free.

In NFPs a 457(b) plan is generally limited to 20% (again general rule)  or less of work force so if there are only 5 employees, you would be limited to 1 or perhaps 2 participants  under circumstances you would have to get the IRS to buy off on..  These participants would be from a "select group of employees" or Highly Compensated Employees as IRS calls them).  The HCE definition for 457(b) plans for NFPs is not the same as the HCE definition for qualified plans. 

Thank you Alex and ebplans.

Yes, this will be a 457b plan for NFP organization. I intend to hire / pay for the services, just didn't know who to ask!

Thank you for your suggestions.

We are QBI,LLC in California, an Ascensus company.  We prepare plan documents for 457(b) plans for NFP's and all the forms needed for enrollment elections, beneficiary selection, etc.   Also monitor the required DOL filing to be sure it is done.  Let me know if we can help or if you want a proposal.   We do NOT do ongoing administration on these plans.   I can explain or elaborate on this point if you wish. 

Patricia Neal Jensen, JD, VP

QBI,LLC, an Ascensus Company

patricia.jensen@ascensus.com

949-325-6727