Tex.
Gov't Code Section 609.006
Conformance to or Conflict with Federal Law
(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 or convert all or a portion of deferred amounts as or to Roth contributions under Section 609.1025 (Roth Contribution Programs) or 609.5021 (Roth Contribution Programs), as applicable, 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.
Source:
Section 609.006 — Conformance to or Conflict with Federal Law, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.609.htm#609.006 (accessed Jun. 5, 2024).
