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.
Publication Name: The Journal of Pension Planning & Compliance
Subject: Human resources and labor relations
ISSN: 0148-2181
Year: 1996
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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.
Publication Name: The Journal of Pension Planning & Compliance
Subject: Human resources and labor relations
ISSN: 0148-2181
Year: 1992
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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.
Publication Name: The Journal of Pension Planning & Compliance
Subject: Human resources and labor relations
ISSN: 0148-2181
Year: 1997
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