How Can a Top-Hat 457(b) Sponsor Confirm Having Filed its Plan Statement?

Q: We are a private tax-exempt organization that maintains a top-hat 457(b) plan for select management and highly compensated employees. We were recently asked for our top-hat plan statement, but we could not locate it. How do we know if we actually filed such a statement with the Department of Labor?

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

A: Before the Experts answer your question, we should explain, for our readers, what a top hat plan statement is and why it is important. Retirement plans are generally subject to the Employee Retirement Income Security Act’s fiduciary rules unless an exception is met. One exception to this requirement involves top-hat 457(b) plans of private tax-exempt employers. If a one-time top-hat plan statement is filed with the DOL for such a plan, the plan is generally exempt from the reporting and disclosure requirements of ERISA, including 5500 annual report filings. Thus, it is quite important for a top hat plan statement to be filed with the DOL, since it eliminates the administration associated with reporting and disclosure requirements. Fortunately, when a plan sponsor is uncertain as to whether or not it filed a top-hat plan statement, the DOL can help. Specifically, they have a Top Hat Plan Statement Search webpage where plan sponsors can see whether the DOL has a record of their filing. 

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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