Governmental Plans under Internal Revenue Code Section 401(a)
Under Code section 414(d), a governmental plan is a Code section 401(a) retirement plan established and maintained for the employees of:
- the United States or its agency or instrumentality;
- a state or political subdivision, or its agency or instrumentality; or
- an Indian tribal government or its subdivision, or its agency or instrumentality (participants must substantially perform services essential to governmental functions rather than commercial activities.)
Other types of governmental plans include:
- 403(b) tax-sheltered annuity plans;
- 457 deferred compensation plans;
- qualified excess benefit arrangements; and
- Certain grandfathered 401(k) plans adopted by a governmental entity before May 6, 1986.
Recent Developments
The IRS and Department of Treasury are soliciting comments on possible standards for determining if a retirement plan is a governmental plan under section 414(d) of the Internal Revenue Code, and have announced their intent to issue guidance that would affect the normal retirement age rules for governmental plans and extend the effective date of the 2007 NRA regulations.
Apply for a Determination Letter
How and why to request a determination as to whether the form of a governmental plan document satisfies applicable tax qualification requirements. Also, see our newsletter article on determination letters for governmental plans.
Correct Plan Errors
Find, fix and avoid mistakes in governmental plans.
Additional Resources
Presentations for governmental plans on tax law requirements, EPCRS, examinations and how the IRS’s Federal, State and Local Governments division interacts with Employee Plans; frequently asked questions about EPCRS and determination letters; and newsletter articles.
Contact Us
E-mail us your questions, comments and suggestions about Code section 401(a) governmental plans.
