457 Answer Book, Eighth Edition
The 457 Answer Book is the first in-depth resource that provides answers to the need-to-know questions asked by tax-exempt organizations, state and local governments, and their lawyers, accountants, investment advisors, recordkeepers, and other service providers.
The 457 Answer Book, Eighth Edition, provides updated and expanded coverage of legislative and regulatory developments and changes affecting plans under Internal Revenue Code (Code) Section 457. The new edition is also updated for new law under the SECURE Act—the Setting Every Community Up for Retirement Enhancement Act of 2019, enacted on December 20, 2019 as a division of the Further Consolidated Appropriations Act, 2020.
Note: Online subscriptions are for three-month periods.
Highlights of the Eighth Edition include:
- Coverage of how a governmental plan might permit a still-working distribution when the participant is age 59½
- Coverage of which plans’ fiduciaries may use a safe harbor to meet fiduciary responsibility in selecting an annuity insurer
- Discussion of whether a participant may get a plan loan’s proceeds as a line of credit accessed through a bank card
- Discussion of when a court might defer to a government plan administrator’s plausible interpretation of a statute or rule to possibly overcome a substantial-compliance doctrine
- Discussion of why the IRS appears to take the position that employees hired after age 67½ (or 69 for persons attaining age 70½ after 2019) may not be able to fully utilize the contribution catch-up rule.
- Discussion of the reduction in minimum age for allowable 457(b) distributions.
- Coverage of whether a person’s refusal or failure to cash a plan’s payment alters a payer’s tax-reporting and withholding duties or a participant’s tax consequences.
- Discussion of the new penalty exception for a qualified birth or adoption distribution.
- Updated coverage of recent disaster relief.
- Expanded coverage and new examples on the tax on excess tax-exempt organization executive compensation under Code Section 4960 imposed.
- Discussion of when plan amendments are required in a 457(b) plan to allow for disaster distributions.
- Discussion of whether a service provider’s or its employee’s disqualifying political contribution could result in undoing a service provider’s compensation.
- Discussion of when a fiduciary may participate in deciding a matter that affects his or her own benefit under the deferred compensation plan .
- Analysis of when a participant’s required beginning date turns on age 72, rather than on age 70½ Coverage of when a deceased participant’s remaining benefit must be distributed by the end of the tenth calendar year that follows the year of death.
- Discussion of whether a plan’s fiduciaries can follow a state’s investment direction.
- Why the tax law’s age of majority, before which a beneficiary’s ten-year minimum-distribution period does not begin, does not necessarily relate to a state’s definition of majority or adulthood.
- Expanded coverage of whether 457 plan assets available to the creditor-spouse in a divorce proceeding.
- New coverage of whether the 457 plan assets of a participant creditor of the United States in a garnishment proceeding are available under the Mandatory Victim Restitution Act.
- Discussion of whether a trust is treated as an eligible designated beneficiary to avoid distributing a deceased participant’s remaining benefit by the end of the tenth calendar year that follows the year of the death.
- When a plan’s fiduciary may rely on a safe harbor about lifetime-income disclosures.
- Whether ERISA’s safe harbor for selecting an annuity insurer applies to a governmental plan.
- Whether a governmental plan’s administrator must provide procedural due process.