457b Retirement Plan

[CarolV-CLIC]

What line on the Health blank should the assets in a 457B retirement plan be reported. Other Assets or Write Ins? (or something different).

Thanks for the input!

[Glenn]

Hello Carol,
Please note the following first. A 457b is defined as :

A 457(b) plan is an employer-sponsored, tax-favored retirement savings account. Also known as a deferred compensation plan, it's offered to state and local government employees such as police officers, firefighters, or other civil servants. Some high-paid executives at certain nonprofits like hospitals, charities, and unions are also able to use 457(b) plans. You can think of the 457(b) plan as a 401(k) for the government-worker or tax-exempt organization worker but there are a couple of unique differences that make a 457(b) even more attractive from a tax benefit standpoint but we are not discussing those here.

So the assets supporting the deferred compensation plan liability ( part of general expense liabilities - employee benefits) would be reported on page 2 Assets line 25 Write ins.

Please refer to SSAP 11 paragraphs 13-15 - Deferred Compensation

So like SSAP 92 and SSAP 102 Pension and Post Retirement Benefits, the assets that represent the overfunding of these type liabilities is also reported on page 2, line 25 write-ins . The Overfunding status however, is considered a prepaid asset and must be subsequently non admitted.

So carry this logic forward for the Deferred Comp Plans ( 457b Plan) that you have . If you have an asset that represents the funding of the deferred comp plan it too would be reported on page 2, line 25 write ins .
It would be a prepaid expense and subsequently non admitted.

Thank you for the question.

Regards,
Glenn S Sackett