() Which of the following statements regarding 457 plans is (are) true? 1. An in

Question

() Which of the following statements regarding 457 plans is (are) true? 1. An individual who defers $15,500 to his 403(b) plan during 2008 can also defer $15,500 to a 457 plan during 2008 (salary and plan permitting). 2. A 457 plan allows an executive of a tax-exempt entity to defer compensation into an ERISA protected trust. 3. In the final three years before normal retirement age, a participant of a government sponsored 457 plan may be able to defer $31,000 (2008) for the plan year a 1 only b. 2 only c. 1 and 3 d. 2 and 3

Explanation / Answer

Ans c) 1 and 3 only

Employees who have both 457(b) and 403(b) plans can contribute the maximum allowable amount that is $15,500 in 2008, to both the plans, thus making the maximum allowable amount to be $31,000. This makes the first statemetnt true.

For employees who are within three years of their plan's normal retirement age, the 457(b) allows to contribute up to 200% of the maximum allowable contribution, that is $31,000 in 2008. This makes the third statement true.

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.