A primer on Code section 457 plans

Article Abstract:

IRC section 457 governs the taxation of nonqualified deferred compensation plans offered by government employers and non-church tax-exempt organizations. The law governing taxation of these benefits has evolved since the IRS first proposed in 1978 that employees should be taxed based on the constructive receipt doctrine. Section 457 defines when such plans will be considered eligible for tax deferral treatment. Plans that are not exempt from section 457 and are not eligible under section 457 will be subject to taxation when funds are no longer subject to substantial risk of forfeiture.

Compensation and benefits, Nonprofit organizations, Public employees, Government employees

---

Section 457 plans: deferred compensation plans for tax-exempts and government organizations

Article Abstract:

'Section 457 plans' are nonqualified deferred compensation plans which since 1986 apply to all tax-exempt employers. If a plan meets the requirements of IRC (b) and (d), participants will not be deemed in constructive receipt of monies set aside for them and can defer tax until they actually receive the money. Participants in plans not satisfying IRC 457 standards are taxed on monies deferred unless if there is no great risk of forfeiture. Plans must be unfunded and there is a cap on the amount deferrable. ERISA and social security implications are described.

---

Untangling the thicket: the effects of informal communications on participants' rights under ERISA plans

Article Abstract:

Employees have begun to sue employers for discrepancies between informally communicated information about ERISA benefit plans and the actual written plans using breach of contract, federal common law estoppel and other causes of action. The circuit courts have been inconsistent in their rulings and determining whether the employer misrepresented the plan is difficult. However, some employees have succeeded using estoppel and breach of contract causes of action, making the potential liability for employers significant.

Cases, Breach of contract, Estoppel

Similar abstracts:

• Abstracts: A national pension system. Public pension plans in the third millennium. Where have all the good fiduciaries gone?
• Abstracts: The new US deferred compensation law: relevance, meaning, and response. Greater transparency for hedge funds - a natural development in the USA
• Abstracts: A flat tax would harm to private pension system. Is daily valuation right for your organization?
• Abstracts: Investor views on corporate treasury activities: UK. A very cheery consensus - the thoughts of Buffett, Graham and Keynes
• Abstracts: External legitimacy of unions: trends in New Zealand. Eternal legitimacy of New Zealand trade unions: an update

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.