Skip to main content

You are here

Practice Management

Election Forms for Executives

Q. A non-profit client has a 403(b) and a top-hat 457(b) plan. The 457(b) states that an eligible executive is entitled to receive their benefit following termination of employment (amongst others, see below) but is able to defer this distribution until a later date. This plan has an executive who recently terminated and wants to do just that; however, the client does not have an election form for the executive to complete.  Is there a sample election form for this kind of thing?

A. The 457 statute and regulations permit the participant to defer payment of the amounts but only before the date that they become distributable (in your case separation from service). A participant cannot change this once they otherwise are eligible to receive the distribution, which according to your email has already occurred. The form for this would typically be one that the TPA for the plan provides before the time that a distributable event occurs. Such a form would need to satisfy the provisions of the plan and adoption agreement, so it goes beyond the section attached.