403(b) and 457 PLANS

**403(b) and 457 PLANS**
Here is some information I picked up from a Nov 20, 2006 posting at
http://403b-457plansblog.blogspot.com/index.html written by Thomas L Geer, JD, LLM, New Castle, PA.
He has authorized me to quote from his blog.
2007 Limitations---403b and 457 Plans.
overall Limit --$ 45,000
403(b) Deferrals--$15,500
Age 50 Catch-Up--$5,000
Primary 457 Limit--$ 15,000
Age 50 Catch-up--$5,000

These plans have included members of my own family:
My wife is a former teacher in public schools and colleges, having taught in the Dallas ISD, St Mary University, Dallas County Community College District and Amber University.
One of my daughters is a former teacher and principal in the Dallas ISD--and is presently a principal in the Manor TX ISD.

HERE IS MORE ABOUT THESE PLANS FROM THE IRS
IRC 403(b) PlansCertain employers are allowed to have Internal Revenue Service (IRC) 403(b) Tax-Sheltered Annuity plans.
You are allowed to have a 403(b) plan if you are:
A public school, college or university,
A church,
A public hospital, or
A charitable entity tax-exempt under section 501(c)(3) of the Code

Basically, 403(b) plans are similar to 401(k) plans maintained by for-profit entities. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary. In this case, their deferred money goes to a 403(b) plan sponsored by the employer. This deferred money generally does not get taxed by the federal government or by most state governments until distributed. This is just as it is with 401(k) plans.
If you establish a 403(b) plan, you can have other retirement plans and you may need to file Form 5500.
Beginning in 2006, a 401(k) or 403(b) plan (but not a SARSEP or SIMPLE IRA plan) may permit an employee to irrevocably designate some or all of his or her elective contributions under the plan as designated Roth contributions
IRC 457 PlansPlans of deferred compensation described in IRC section 457 are available for certain state and local governments and non-governmental entities tax exempt under IRC 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC 457(f). Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years
. Ineligible plans may trigger different tax treatment under IRC 457(f).
Resources
Publication 4406 - 403(b) and 457 Retirement Plans(with plan feature comparison chart)
IRC 403(b)/457 Online Resource Guide
FAQs regarding Tax-Sheltered Annuities
Check-Up for Your 403(b) Pla
RECURRING REFERENCES –KEY RESOURCES:
FORMS AND PUBLICATIONS http://www.irs.gov/formspubs/index.html
WHERE TO FILE: http://www.irs.gov/file/index.html
RESTORED DEDUCIONS for Sales Tax
http://www.irs.gov//pub/irs-pdf/p600.pdf

OTHER FORMS AND PUBLICATIONS:
Car Expense Pub 334,463,535
Sale of Principal Residence Pubs 523 and IRC § 121
Sec 179 write-offs for SUVs and other equipment Form 4562, Pub 946, IRC §167
Office in Home Form 8829, Pub 587
Mutual Fund - phantom profits, reinvested dividends: Pub 550 and 564
Alternative Minimum Tax Pub 929 (individuals) Pub 542 (corporations)

Link to IRS Section Numbers: http://www.taxalmanac.org/index.php/Internal_Revenue_Code
To subscribe to IRS Newswire http://www.irs.gov/newsroom/content/0,,id=103381,00.html

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