Section 401(k),403(b) and 457(b) Plans after EGTRRA

Section 401(k), 403(b) and 457(b) defined contribution pension plans have become a major element of the retirement income system of the United States, either as the employer's primary plan or as a supplement to a traditional defined benefit pension. Although these plans had separate origins and developments, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (effective 2002) made them more similar to each other and greatly increased portability among them. The act also greatly enhanced the opportunity to save for retirement under favorable tax conditions for those with the discretionary income to do so. This article examines and evaluates 401(k), 403(b) and 457(b) pension plans as affected by the provisions of EGTRRA.