TAX 9873 Lecture Notes - Lecture 67: 457 Plan, Tax Deduction, Contract
Document Summary
All 457 plan assets are owned by the entity that offers the plan. Assets in tax-exempted organizations are subject to seizure by creditors. Assets in state and local government plans are not subject to seizure by creditors. There are limitations that can be provided in tax exempt world. People set up tax exempt orgs, get tax deduction and pay themselves money out of tax exempt org. Prevent abuses of getting charitable deductions and getting paid out of your own tax exempt org. Ceot of entity, created retention tool k/yr, stay 10 years, every year you stay, we give you. k when you get vested included in income at that point in time. Eligibility- meet definition of employees for public. For those within 3 years prior to with 15 or more years of service, retirement, special amounts are allowed subjected to lifetime limit of. Termination, age 70. 5, retirement, death, disability, death, or hardship or unforeseeable financial emergency.
