Sullivan v. City of Worcester

The question before us is whether a custodial account approved as an investment by the Internal Revenue Service and hence authorized by the first sentence of G. L. c. 71, § 37B, must be purchased from “an insurer authorized to issue life insurance or annuity contracts in the commonwealth” (fourth sentence of G. L. c. 71, § 37B [see note 2, infra}).

The plaintiff, a school psychologist in Worcester, sought to invest in a tax-deferred retirement plan through payroll deduc*361tions. Having determined that a custodial account authorized by § 403(b)(7) of the Internal Revenue Code (1982) was more…