nongovernmental 457 plans may not be rolled into any other type of tax-deferred retirement plan. It may be rolled only into another nongovernmental 457 plan. Also, money deferred into nongovernmental plans is not set aside in a trust for the exclusive benefit of the employee making the deferral. The Internal Revenue Code requires that money in a nongovernmental 457 plan remains the property of the employer and not taxable until time of distribution for specific situations as allowed by the original 457 plan or in cases of withdrawals for emergency cash needed situations. If funds are set aside or provided in a separate account for the employee or in the employee's name then that type of 457 plan is not a tax-deferred plan and becomes a nongovernmental 457(b) funded pretax plan. 457(b) (eligible) plans Employee Retirement Income Security Act (ERISA) legislation has said that nongovernmental plans must be limited to some group of more highly compensated employees. The level of compensation required is not specified by ERISA, but it must be according to some ascertainable standard that the employer sets. The same highly compensated limit ($125,000 a year for the preceding year of 2019 and $130,000 for the preceding year of 2020 or 2021) in place for 401(k) discrimination testing would likely be acceptable, as would restricting the plan to some class of employees such as directors or officers. Because of this limitation to higher-compensation employees, 457(b) plans are occasionally referred to as "top hat" plans. 457(f) (ineligible) plans IRS code section 457(f) allows for nongovernmental, nonprofit organizations to set up a plan that can be tax deferred and exceed the normal defined contribution employee deferral limit. Ineligible 457 plans are made available because nonprofit organizations are not allowed to have another kind of nonqualified deferred-compensation plan. Generally, these deferred amounts would be currently taxable under section 83 of the code, unless the employee faces a "substantial risk of forfeiture", which has been clarified by the IRS to mean that in addition to the money remaining available to general creditors of the organization or subject to not vesting, and if the employee does not stay with the employer for the full vesting period. When the risk of forfeiture is gone, the value of the property given to the employee ceases to be deferred from taxation and is included in current ordinary gross income. Another plan design, the rabbi trust, gives