Section 457(b) Plans

System

Can anyone assist me with a non-profit agency being able to have a 401(k) plan and also a 457(b)Plan? There are mixed reviews on this issue. The 457(b) is funded (employees are the only contributors), but the agency is listed as the owner. Does anyone know if this is legal?

mikicini

Yes, you can have both. Of course, the 457(b) is a "Top Hat" plan that can only be offered to "top" management.
ps. The maximums are the same for 2003 $12,000 (with the "catch up" of $2,000 for those over 50). Therefore, a "top" manangement person could defer up to $28,000 if they are over 50.