Irs Section 457

457 a 1 a.
Irs section 457. Less common are 457 f plans which are offered to top level employees and some non government employees. Retirement topics 457 b contribution limits retirement topics 457b contribution limits internal revenue service skip to main content. Federal government employees have thrift savings plans instead.
Except as provided in subparagraph b the application of section 457 of the internal revenue code of 1986 by reason of the amendments made by this section to deferred compensation plans established and maintained by organizations exempt from tax shall apply to taxable years beginning after december 31 1986. Ineligible 457 plans are made available because nonprofit organizations are not allowed to have another kind of nonqualified deferred compensation plan. A 457 b plan is usually available to local and state government workers and those employed by tax exempt organizations.
Under section 457 a compensation deferred pursuant to an eligible plan and the income attributable to such deferred compensation are taxable in the year in which the deferred amounts are paid or made available to a plan participant or other beneficiary. 457 a 1 in general any amount of compensation deferred under an eligible deferred compensation plan and any income attributable to the amounts so deferred shall be includible in gross income only for the taxable year in which such compensation or other income i r c. They are offered by state local government and some nonprofit employers.
Irs code section 457 f allows for nongovernmental nonprofit organizations to set up a plan that can be tax deferred and exceed the normal defined contribution employee deferral limit. Deferred compensation plans of state and local governments and tax exempt organizations. Participants are allowed to contribute up to 100.
A 457 b plan s annual contributions and other additions excluding earnings to a participant s account cannot exceed the lesser of. Internal revenue code 457. 457 u s.
Section 457 deferred compensation plans of state and local government.