As a leading provider of retirement plan services, Legend can assist your organization
with the design, implementation and maintenance of a §457(f) Deferred Compensation
Top Hat plan.
Eligible Employers
Tax-exempt employers
Eligible Employees
Top hat employees only. The Department of Labor defines these individuals as highly compensated employees who are top decision makers
Contribution Limits
100% of compensation
Taxation
Distributions are taxed as soon as no substantial risk of forfeiture exists, even if the employee doesn't take constructive receipt of any assets
Employer Asset
Exposed to Employer’s general creditors in times of uncertainty
Normal Distributions
Upon separation from employment. Arrangements should be made for the continuing risk of forfeiture after separation from the employment to spread out benefits
(e.g., consulting contract), vesting in 20-25% each year
Exchanges
Participants may exchange accounts
from one approved vendor to another approved vendor
Transfers to & from Plan
None allowed
Rollovers into Plan
None allowed
Rollovers to IRAs
None allowed
Premature Penalty
None at any age
Required Minimum Distributions
Not applicable
Legend Equities Corporation and its affiliates do not provide tax information or advice.