Baden Retirement Plan Services can administer 457(b) plans for state or local governments, and tax exempt organizations under Internal Revenue Code 501(c) (IRC 501(c)). 457(b) plans may be a good supplement to a 401(k) or a 403(b) plan if an employer wishes to provide for greater tax deferred contributions.

• Typical number of employees in the plan: A non-governmental 457(b) plan must be limited to a select group of management or highly compensated employees (HCEs); Non-highly compensated employees of other types of organizations are eligible to participate in addition to the HCEs
• Features: These types of plans can be considered eligible under IRC 457(b) or ineligible under IRC 457(f). Employers or employees can make tax deferred contributions to the plan through salary reductions. The salary reduction contribution limit is set by IRC 402(g). A 457(b) plan can be combined with other retirement plans.

Similar to a 401(k) plan, a 457(b) plan must comply with applicable Internal Revenue codes and the Department of Labor’s Employee Retirement Income Security Act of 1974 (ERISA), which is the federal law that sets minimum standards for operating most voluntarily established tax qualified retirement plans to provide protection for individuals who participate in the plans.

For more information, contact Tom Ackmann at (260) 969-2677 or use our Contact Us form to e-mail your inquiry.