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Texas Statutes (Last Updated: January 4, 2014) |
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GOVERNMENT CODE |
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Title 6. PUBLIC OFFICERS AND EMPLOYEES |
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Subtitle A. PROVISIONS GENERALLY APPLICABLE TO PUBLIC OFFICERS AND EMPLOYEES |
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Chapter 609. DEFERRED COMPENSATION PLANS |
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Subchapter A. GENERAL PROVISIONS |
Sec. 609.006. CONFORMANCE TO OR CONFLICT WITH FEDERAL LAW
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(a) A deferred compensation plan must conform to federal law to provide that deferred amounts and investment income are not includable, for federal income tax purposes, in the gross income of a participating employee until distributed to the employee, subject to the employee's option to designate all or a portion of deferred amounts as Roth contributions under Section 609.5021, the federal income tax treatment of which is governed by Section 402A, Internal Revenue Code of 1986.
(b) Federal law controls to the extent that this chapter materially conflicts with:
(1) Section 401(k), Internal Revenue Code of 1986 (26 U.S.C. Section 401(k));
(2) Section 457, Internal Revenue Code of 1986 (26 U.S.C. Section 457); or
(3) other federal law, including a federal rule governing deferred compensation plans.
(c) For the purposes of Subsection (b), a conflict is material only if, for federal income tax purposes, it is reasonably certain to result in the inclusion of an employee's deferred amounts or investment income in the employee's gross income before the amounts or income are distributed to the employee.
(d) The board of trustees of the Employees Retirement System of Texas may adopt rules necessary to make a deferred compensation plan established under Subchapter C a qualified plan under federal law, including federal rules and regulations.