May K-12 schools offer any plans other than 403(B) plans?

Assuming you are talking about elective deferral plans, yes they may. They may off Deferred Compensation plans under Code Section 457.

Best wishes,
Joel L. Frank

That is correct regarding the 457(g) plan. Effective Jan. 1 2002, public school employees may participate in both the 403(B) and 457(g). This means that the employee may contribute up to $22,000, not including catch-up provisions.

Also, the school may also elect to participate in a 401(a) matching plan. This can be utilized for additional benefits. For additional benefits

Both the 457(g) and the 401(a) plans can also be set up for seasonal and part-time employees as a FICA alternative plan. Saving the school district the matching part of the FICA.

Email me if you have any further questions.

sadler_kyle@hotmail.com

Who sells these 401(a) plans?

I keep hearing about such plans but have not seen any marketing activity.

A 401(a) plan offering is not limited to a matching plan. The school could have any kind of 401(a), unless the school is governmental. Then it could not offer a 401(k) plan unless it had a grandfathered 401(k) plan available (see other threads).

GBurns asks: Who sells these 401(a) plans?

Answer: The same entities that sell all the other tax-favored retirement plans.

Peace,
Joel L. Frank

A governmental school can also have a post-tax thrift plan (post-tax, gains taxed on distribution), and should be able to have a Roth account feature (post-tax, gains not taxed on distribution). Also, I see no prohibition on the IRA-equivalent accounts for governmental plans.