Tech Talk: Timing of 457 Plan Adoption

Q. What is the timing for the adoption of a 457 plan and when the plan document must exist? 

A. The plan must be adopted and the plan document exist before the first day of the month in which the compensation is paid or made available in order to provide that compensation has been properly deferred by salary reduction, and an agreement providing for the deferral must have been entered into before the deferral.