Governmental Plans under IRC Section 401(a) - Qualified Excess Benefit Arrangements


Under IRC Section 415(m), a portion of a governmental plan is a qualified excess benefit arrangement if:

  • it is maintained to only provide a participant's annual benefit that exceeds the IRC Section 415 limits;
  • it does not allow a participant to directly or indirectly defer any compensation to that portion of the plan; and
  • excess benefits are paid only from a plan trust account maintained solely for the purpose of providing excess benefits.