Nonqualified Plans Flashcards
1
Q
457 Plan
What is it?
A
Deferred compensation plan of governmental units, governmental agencies, and also non-church controlled, tax exempt organizations
2
Q
457 Plan
Can it be discriminatory?
A
Yes
3
Q
457 plan
What are the contribution limits
A
Contribution limit is an employee employer combined limit
Cannot exceed the lesser of $23,000 (2024) or hundred percent of employees compensation
Age 50+ catch up $7500
May provide a special final three-year additional catch-up provision. Effectively doubles the allowable contribution limit in the last three years of employment
4
Q
457 Plan
Are 457 Deferrals aggregated with other plan contributions?
A
No
5
Q
457 plan
Plan cannot be paid prior to one of the following
A
Age 59 1/2
Retirement or Death
Certain Emergencies
