(Archived Content)
FROM THE OFFICE OF PUBLIC AFFAIRS
To view or print the Microsoft Word content on this page, download the free Microsoft Word Viewer.
JS-551Today, the Treasury Department and the IRS issued final regulations governing deferred compensation plans under section 457. These include 401k-type plans established by state or local government employers permitting their employees to save on a pre-tax basis, as well as deferred compensation plans of tax-exempt employers. These eligible governmental plans hold about 100 billion dollars in retirement savings, which is about 5 percent of the more than 2 trillion dollars in the nations 401k-type savings. The regulations were developed taking into account the recommendations of the state and local governments that sponsor these plans.
The existing regulations for 457 plans have not been changed since 1982. Since then, there have been a large number of important statutory changes. The new regulations replace the 1982 regulations, incorporate the guidance the IRS has issued since 1982, and address a wide variety of open issues. The regulations are generally effective for years that begin after 2001.
Related Documents: