Frequently Asked Questions

Are employer retirement contributions made during the PPP window forgivable?

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Subject to limits on self-employed individuals and owner-employees, Nova believes that employer contributions made during the PPP window are forgivable. This would appear to apply to a wide variety of employer retirement contributions including matching, profit sharing, defined benefit and cash balance contributions. It is also possible this would apply to both the 2019 and … Read more

Other than governmental employers, who can establish a 457(b) plan?

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The organization must be a tax-exempt organization under IRC 501(c), excluding churches as defined under IRC 3121(w).  The most common example of a non-governmental organization sponsoring a 457(b) plan would be a charity which is tax-exempt under IRC 501(c)(3).  Other examples include certain credit unions, country clubs, civic leagues and other groups organized under IRC … Read more

What is 457(b) plan?

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A 457(b) plan is a type of non-qualified tax advantaged deferred-compensation retirement plan that is available for governmental and certain non-governmental employers. The employer provides the plan and the employee defers compensation into it on a pre-tax basis.   Sometimes the employer also makes contributions.

What special rules apply when doing top heavy testing on a union plan?

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The top heavy rules allow an employer to elect to perform top heavy testing by combining multiple plans if certain conditions are met.  If an employer has both a union plan and a non-union plan, under certain circumstances, the plans may be permissively aggregated for top-heavy testing if the union and non-union plans provide comparable benefits.

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