On July 11, 2003, the Internal Revenue Service (IRS) issued final regulations on Section 457 deferred compensation plans. Focusing on the legislative intent and history, the Treasury Department and the IRS wrote and issued these regulations in an effort to clarify the statutory language contained in various laws impacting 457 plans that have been enacted over the past two decades. The regulations include guidance on the Small Business Job Protection Act of 1996 (SBJPA), Taxpayer Relief Act of 1997 (TRA) and the recent Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA).
The regulations were released July 11, 2003 and made effective retroactive to January 1, 2002. The deadline to update 457 Plan Documents was December 31, 2005. If you sponsor a 457 plan and have any questions, contact Client Services.