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Treasury Dept Issues Proposed 457 Regs

On June 22, 2016, the IRS published new and long-awaited regulations under Section 457(f) of the Internal Revenue Code.  For now, these regulations are "proposed." but it is anticipated they will become final around January 1, 2017.  In the meantime, they can be relied upon immediately.  Also. importantly, when finalized they are retroactive, meaning that they will apply to any existing deferral arrangements under 457(f) that have not yet become taxable.

In general, these proposed regulations are favorable to employers who provide non-qualified deferred compensation under Section 457(f) of the tax code. They also add flexibility for employees participating in those plans.  For example, a non-compete agreement can now be used to delay taxation under a 457(f) plan.  This and other key topics are discussed in more detail in the link below.

Treasury Dept Issues Proposed 457 Regulations