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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IRS FEE INCREASE - Installment Agreements*

**Here is a new announcement from the IRS**
IRS INCREASES FEES FOR INSTALLMENT AGREEMENTS (FORM 9465)
IRS Announces Installment Agreement User Fee Increases for Some Taxpayers

This news release supersedes News Release IR-2006-176, dated Nov. 13, 2006.
IR-2006-196, Dec. 28, 2006
WASHINGTON – Beginning Jan. 1, 2007, the Internal Revenue Service will implement revised user fees for installment agreements. For eligible individuals with income at or below certain levels, the fee for entering new agreements will not increase but remain at the 2006 level.
The Office of Management and Budget has directed federal agencies to charge user fees reflecting the full cost of goods or services that convey special benefits to recipients beyond those accruing to the general public. The installment agreement user fees have not been increased since first implemented in 1995. Increases in labor and other costs of processing have increased the cost of processing installment agreements.
User fees for entering into a non-direct debit installment agreement will increase from $43 to $105, and the fee for direct debit installment agreements will increase from $43 to $52.
Taxpayers with income at or below established levels, based on the Department of Health and Human Services poverty guidelines, can apply and be qualified to pay a reduced user fee of $43 for establishing new agreements including direct debit installments. Information about requesting the reduced user fee will be included in installment agreement acceptance letter sent to individuals.
The fee for restructured or reinstated agreements will increase from $24 to $45 regardless of income level.
Related Item:
Final Regulations on User Fees for Processing Installment Agreements

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This information is not intended to be advice to the recipient. In compliance with Treasury Department Circular 230, unless stated to the contrary, any Federal Tax advice contained in this Blog was not intended or written to be used and cannot be used for the purposes of avoiding penalties.