457(b) - Tax-Exempt Organizations (Non-Church)
A 457(b) plan for non-church, tax-exempt organizations allows the employer, a select group of management or highly compensated employees and independent contractors to contribute to the plan.
Consult a benefit plan advisor to set up a 457(b) plan for a non-church, tax-exempt organization.
| 457(b) plan on IRS.gov
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- Can only be set up by tax-exempt organizations (non-church)
- Participant’s retirement benefits based on participant’s account balance
- Allows select group of management or highly compensated employees and independent contractors to contribute to their own retirement by deferring compensation, up to $17,0001 or more for 3 years prior to normal retirement age
- Plan may allow employer contributions
- The maximum combined annual contributions are the lesser of 100% of includible compensation or $17,0001 and more for 3 years prior to normal retirement age
- May cover select group of management or highly compensated employees and independent contractors in the plan
- The Plan may not make loans
- All contributions are subject to claims of creditors
1Dollar limits are for 2012 and are subject to cost-of-living adjustments for future years. |
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Maintaining a plan on IRS.gov
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Correcting Plan Errors on IRS.gov
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ADDITIONAL RESOURCES
- Publication 4484, Choose a retirement plan for employees of tax-exempt and government entities (schools, hospitals, churches, charities) (.pdf file)
