Employee Plans Compliance Unit (EPCU) - Current Project - Non-Governmental 457(b) Plans Excess Deferrals Project

 

Why did I receive an EPCU compliance check letter?

Our records show that you maintain a non-governmental 457(b) plan and you filed a Form W-2 showing contributions to the plan exceeding the annual limits.

Background

Code section 457 plans may allow participants to make 'catch-up' deferrals during the three-year period immediately preceding the year in which they attain normal retirement age if they have not deferred the maximum amount for all prior years of participation in the plan. We will contact non-governmental sponsors of 457(b) plans with participants whose contributions exceed a statutory annual limit.

What is EPCU attempting to determine?

Our goals are to verify the plan's eligibility and application of deferrals for a 457(b) plan.

We will correspond with you to obtain information about your plan and verify the accuracy of the Forms W-2, with regard to the plan and the catch-up contributions. In instances where a plan is not established or operated in accordance with IRC Section 457(b), we will inform you of our conclusions and actions that may need to be taken as a result.

What actions do I need to take?

Please provide a timely response to the information request. If you do not have a 457(b) plan or if you believe for any other reason that you should not have been contacted, please communicate with us and explain your circumstances.

You may furnish other documents or clarifying material that you believe will be helpful for us to review. Please answer the questions as completely and accurately as possible.

This letter initiates a compliance check. We will not inspect your books and records to determine a liability for a particular tax period. If you don't respond, however, we may need to take other measures to ensure compliance, including an examination of your plan or organization.

If you receive a letter and have questions

Please review the Other Resources provided below. Our contact information is also provided in the letter you received so you may call us to discuss this project and how it relates to you.

Other resources

457(b) Current Plan Contribution Limits

457(b) Prior Plan Contribution Limits PDF

457(b) Plans