Deferred compensation plans of state and local governments and tax-exempt organizations

What this document is

26 U.S.C. s. 457: Deferred compensation plans of state and local governments and tax-exempt organizations is a state statute published by U.S. Government Publishing Office (govinfo.gov). It is one of the documents that insurance license exam questions are written from, including life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 26 U.S.C. § 457(e)(15) (Applicable Dollar Amount)

  “(15) Applicable dollar amount (A) In general The applicable dollar amount is $15,000. (B) Cost-of-living adjustments In the case of taxable years beginning after December 31, 2006, the Secretary shall adjust the $15,000 amount under subparagraph (A) at the same time and in the same manner as under...”

• 26 U.S.C. § 457(b)(3) (Special Last-Years Catch-Up Ceiling)

  “(3) which may provide that, for 1 or more of the participant's last 3 taxable years ending before he attains normal retirement age under the plan, the ceiling set forth in paragraph (2) shall be the lesser of - (A) twice the dollar amount in effect under subsection (b)(2)(A), or (B) the sum of -...”

• 26 U.S.C. § 457(b)(2): maximum amount deferrable for the taxable year

  “which provides that (except as provided in paragraph (3)) the maximum amount which may be deferred under the plan for the taxable year (other than rollover amounts) shall not exceed the lesser of - (A) the applicable dollar amount, or (B) 100 percent of the participant's includible compensation,”

• 26 U.S.C. § 457(b)(6): deferred amounts remain employer property

  “except as provided in subsection (g), which provides that - (A) all amounts of compensation deferred under the plan, (B) all property and rights purchased with such amounts, and (C) all income attributable to such amounts, property, or rights, shall remain (until made available to the participant...”

• 26 U.S.C. § 457(d)(1)(A): distribution requirements, earliest availability

  “under the plan amounts will not be made available to participants or beneficiaries earlier than - (i) the calendar year in which the participant attains age 70½ (in the case of a plan maintained by an employer described in subsection (e)(1)(A), age 59½), (ii) when the participant has a severance...”

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More Federal sources sources

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• Fair Credit Reporting Act - 15 U.S.C. § 1681a (Definitions)State statute
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• 15 U.S.C. s. 1681c: FCRA requirements relating to obsolete information in consumer reportsState statute