Municipal & Non-Profit Retirement Plans

It is estimated that today’s workforce will need 70 to 90 percent of their pre-retirement income to maintain their current standard of living when they retire. (Source: Internal Revenue Service (IRS Publication 4484 (Rev.2-2015))

What are Governmental & Non-Profit Retirement Plans?

IRC 457(b) Deferred Compensation Plans

Plans of deferred compensation described in IRC section 457 are available for certain state and local government and non-governmental entities tax exempt under IRC 501. Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years.

IRC 401(a) Defined Contribution Plan

A money-purchase retirement savings plan that is set up by an employer. The 401(a) plan allows for contributions by the employer, the employee, or both in some instances. Contribution amounts, whether dollar-based or percentage-based, eligibility, and vesting schedule are all determined by the sponsoring employer.

403(b) Plans

A 403(b) plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for certain employees of public schools, employees of cert tax-exempt organizations, and certain ministers.

Individual accounts in a 403(b) plan can be any of the following types.

  • An annuity contract, which is a contract provided through an insurance company,
  • A custodial account, which is an account invested in mutual funds, or
  • A retirement income account set up for church employees.

Although governmental plans have a blanket exemption from Employee Retirement Income Security Act of 1974 (ERISA) pursuant to §3(34), they are subject to state Uniform Trust laws and Prudent Investor laws that are similar to ERISA and many plans choose to use ERISA rules as best practices. With that in mind, over the last 25 years, we have developed a range of services to address the many demands placed on retirement plan sponsors, including:

  • Customized Investment, Education and Fee Policy statements
  • Consultant’s Review for Fiduciary Practices (CRFP)
  • Investment Advisory Services
  • Participant Level Investment Services
  • Provider Analysis and Fee Benchmarking
  • Retirement Plan participant advice.

At Accredited Fiduciary Advisors, LLC we practice a high level of loyalty to plan participants, also known as the “Exclusive Benefit Rule”. The duty of loyalty requires us to act solely in the best interest of the plan and its participants. Contact us for a complimentary, no obligation assessment of your current plan.