Financial Planner

Category - Retirement Savings and Income Planning

What are Section 457 plans also known as?
  1. Executive Plans
  2. Money Purchase Plans
  3. Government Plans
  4. 401 (k) Plans
Explanation
Answer: C - Section 457 plans are also known as government plans. The Internal Revenue Code gives rules for the governing nonqualified plans of government entities and non-profit organization. There is an election to defer compensation that must be made before the compensation is earned, the employer may discriminately choose any employee for coverage, and the maximum deferral limit is $16,500 as of 2009.
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