Q. I have recently run into an employer with a Code Section 501(c)(18) pension trust, and I am not sure what it is. Are these assets eligible for rollover treatment?
A. I tend to think of a 501(c)18 plan as a “pre-403(b)” plan to permit employees to save pre-tax for retirement. These are plans established before June 25, 1959 where employees can contribute pre-tax up to $7,000 (not indexed) annually. No employer contributions are permitted; and no contributions can be made after age 70 ½. No rollovers to any other type of plan or to an IRA are permitted. The salary deferrals do offset other elective deferrals described in Code Section 402(g). If established before June 25, 1959, the plans are grandfathered and can be continued; however, it is rare to see them.