457 Answer Book, Fifth Edition / Edition 5

457 Answer Book, Fifth Edition / Edition 5

by Gary S. Lesser, David W. Powell, Peter J. Gulia

ISBN-10: 0735565945

ISBN-13: 9780735565944

Pub. Date: 07/26/2007

Publisher: Wolters Kluwer Law & Business

The 457 Answer Book is an in-depth resource that provides answers to the questions that tax-exempt organizations, state and local governments, their accountants, tax and legal advisors, 457 administrators, product providers, and investment counselors need to know. Guiding readers through all aspects of 457 plan administration — from installation through the

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The 457 Answer Book is an in-depth resource that provides answers to the questions that tax-exempt organizations, state and local governments, their accountants, tax and legal advisors, 457 administrators, product providers, and investment counselors need to know. Guiding readers through all aspects of 457 plan administration — from installation through the audit process — the 457 Answer Book describes: the duties and responsibilities of those performing the functions; the required legal, accounting, and administrative tasks; checklists that facilitate control of each administrative process; and suggested forms.

The 457 Answer Book also provides:

The history and legal origins of the plan

Design and drafting standards

Suggested administrative procedures

Data processing and payroll considerations

Operations and fund flow mechanics

Marketing and sales suggestions

And much more

457 Answer Book has been updated to include coverage of: ;

A new chapter on Fiduciary Duties to a Governmental Deferred Compensation Plan that concerns duties to an eligible deferred compensation plan maintained by a state or local government employer

A completely revised chapter on ineligible plans under Code Section 457(f), that discusses plans designed to provide benefits to executives of tax exempt and governmental organizations beyond the dollar limits applicable to eligible 457 plans, and includes analysis of nonqualified deferred compensation plans subject to tax under Section 457

When an acquirer can refuse to accept responsibility for a tax exempt acquiree's 457(b) plan

Changes made by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which permits governmental 457(b) plans to establish designated Roth accounts and permits governmental 457(b) plans, 401(k) and 403(b) plans to adopt in-plan Roth rollover provisions

A checklist of administrative differences between a pre-tax deferral account and a designated Roth contribution account

Reporting of direct in-plan Roth rollovers (IRRs) and distribution from designated Roth accounts on Form 1099-R

Reporting of designated Roth contributions to a governmental 457(b) plan on Form W-2 How the RMD rules apply to designated Roth accounts

Reporting of distributions of excess deferrals and designated Roth contributions from a governmental 457(b) plan

When amounts in a governmental 457(b) plan's designated Roth account can be used for unforeseeable emergency distributions in a 457 plan

The Supreme Court's decision that a fund adviser's fee need not be the lowest fee that would have resulted from arm's-length bargaining

Whether amounts withheld from wages as contributions to 457 plans or amounts necessary to repay 457 plan loans are included in the definition of disposable income under the Bankruptcy Code

The rules that apply to the deferral of compensation under a 457(f) plan and a discussion of the limitations to the amount of compensation that may be deferred under a 457(f) plan

A discussion of when the HEART Act's requirement that a death benefit be paid when a participant dies while performing qualified military service apply to a 457 plan and when amendments to comply must be made to governmental 457(b) plans

When the establishment of a group trust for a 457(b) plan is advantageous

A discussion of how governmental pension plans are funded and what happens if the governmental unit does not properly fund its pension obligations

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Product Details

Wolters Kluwer Law & Business
Publication date:
Edition description:
Older Edition

Table of Contents

1. The History of 457 Plans

• Deferred Compensation Before Code Section 457
• Code Section 457 Enactment
• Extensions of Code Section 457 in the 1980s
• Changes in the 1990s: Code Section 457 Plans Start to Look More Like Retirement Plans
• EGTRRA and Beyond
• Job Creation and Worker Assistance Act and Pension Protection Act
• Final 457 Treasury Regulations

2. Eligible 457 Plans

• Employers Subject to Code Section 457
• Church and Church-Related Employers
• Rural Cooperatives
• Plans Subject to Code Section 457
• Eligible 457(b) Plans
• Inconsistent Administration
• Application of ERISA to 457 Plans
• Who Can Participate in a 457(b) Plan?
• Trust Requirements for Eligible Governmental Plans
• Compensation Limits for 457(b) Plans
• Agreements to Defer Compensation
• Contributions by Employers
• USERRA Applicability
• Limitations on Contributions
• Qualified Governmental Excess Benefit Arrangements
• Coordination of Deferrals with Other Plans or Other Employers
• IRS Approval
• Federal Tax Consequences to Participants
• Withholding and Reporting
• State Taxation of Nonresidents
• Excise Taxes
• Investment of 457 Plan Assets
• Life Insurance
• Distributions and Related Issues
• In-Service Withdrawals
• Retirement Distributions
• Separation from Service and Deferred Distributions
• Distributions to Independent Contractors
• Plan-Approved Domestic Relations Orders
• Transfers Between Plans
• Government Balance Sheet Reporting
• Advantages of a 457(b) Plan
• Negative Election Plans
• Governmental Plan Rollovers
• Tax and Service Credit for Governmental Plans
• Plan Termination
• References

3. Distribution Rules

• Overview of the Pension Protection Act of 2006 Distribution and Taxation Provisions
• Early Distribution Rule
• Minimum Distribution Rule
• Rollovers
• Direct Transfers
• Special Distribution Rules for Public Safety Employees and Officers
• PPA 06 Distribution Provisions Effective in 2008
• Other Distribution Rules

4. Investments

• Permitted Investments for Deferred Compensation Plans
• Types of Investments
• Rabbi Trusts
• Trusts for Governmental Deferred Compensation Plans
• Employer Responsibility for Plan Investments
• Participant-Directed Investment

5. Beneficiary Designations and Estate Planning

• Author's notes
• Making a Beneficiary Designation
• Using Trusts
• Family Rights That Restrain a Beneficiary Designation
• Charitable Gifts
• Simultaneous Death
• Absentees
• Marriage
• Spouse's Rights
• Premarital and Marital Agreements
• Disclaimers
• Government Claims
• Unclaimed Property
• Tax-Oriented Estate Planning
• Seeking Advice About Making a Beneficiary Designation

6. ERISA, Its Exemptions, and Other Nontax Considerations for 457 Plans

• ERISA in General
• Governmental Plans
• Church Plans
• Top-Hat Plans
• Excess Benefit Plans
• Severance and Welfare Plans
• Selected Securities and Insurance Law Issues for 457 Plans
• ERISA and Tax Consequences of Funded 457(f) Plans

7. Mergers and Acquisitions

• 457 Plan Considerations
• 403(b) Considerations
• Severance Pay and 403(b) Plan

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