The CARES Act’s New Rules for Coronavirus-related Distributions from Governmental 457(b) Plans

By Jeff Chang

As expected, the recently enacted Coronavirus Aid, Relief, and Economic Security Act contains provisions providing affected workers with greater, more tax-favored, access to portions of their retirement savings. Although it will be possible to make Coronavirus-related distributions from 401(k)s, 403(b)s, IRAs and governmental 457(b)s, we are focusing here on governmental 457(b) plans. Continue reading

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Using 457(b) Unforeseeable Emergency Distributions During the Coronavirus Crisis

By Jeff Chang

During the Coronavirus emergency, it may make sense for state and local governments that sponsor 457(b) plans to allow their employees to access the monies in their accounts as unforeseeable emergency distributions. Not all governmental 457(b) plans provide for these types of distributions. However, it is a relatively easy process for a governmental 457(b) plan sponsor to amend its plan to activate this feature. Continue reading

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One-time Irrevocable Elections and 401(a) Opt-in Plans

By Jeff Chang

There appears to be some confusion among California municipalities about 401(a) opt-in plans use and an employee’s ability to make a one-time irrevocable election to make pre-tax contributions. Continue reading

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Making Sense of Your Retiree Health “Savings” Plan

By Jeff Chang

Several municipal clients adopted retiree health savings plans or post-employment health plans, and continue to have questions about what they are and how they should be administered. Continue reading

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Taking Advantage of Governmental Retirement Plan Contribution Limits

By Jeff Chang

Many governmental 457(b) deferred compensation and 401(a) defined contribution plan sponsors do not take full advantage of the contribution limits for these plans. To do this, you need to understand: the limits, who they apply to, how they coordinate and your ability to target contributions. Continue reading

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