Definition
An eligible 457 plan established and maintained by a State, political subdivision of a State, any agency or instrumentality of a State or political subdivision of a State, and certain other organizations (other than a governmental unit) exempt from tax
Referring Cite
IRC § 457(b), IRC § 457(e)(1)(A)
Additional Helpful Information
- Under a governmental 457 plan, only individuals who perform service for the employer may be participants.
- A governmental 457 plan, must provide that the maximum amount which may be deferred under the plan for the taxable year (other than rollover amounts) shall not exceed the lesser of 100& of compensation or the dollar limit in effect for the year for deferred compensation.