Available only to state and local government entities, these
plans allow employees to defer a portion of current income on a
pre-tax basis. The deferral limits are the same as those under a
section 401(k) provision.
Catch-up contributions in addition to those discussed relative
to 401(k) deferrals are available under special rules prescribed by
the Internal Revenue Service.
State and local government entities cannot sponsor
profit-sharing plans or 403(b) plans.