Roth Arrangements in 457 Plans

January 17, 2007

At the end of the 2007 session the Senate passed a bill that included the governmental Roth 457 provision. The Senate Manager's Amendments (Amendment 3855) to the House Farm bill, H.R. 2419, included the Governmental Roth 457 provision. The bill passed the Senate on Friday, December 13, 2007. A House-Senate conference on the Farm bill is expected early in 2008. Recently the Joint Committee on Taxation released the revenue estimate for the proposal which indicated that the Roth 457 provision raises slightly more than $1 billion over 10 years for the Federal Treasury. This revenue effect greatly increases its prospects for enactment. Read more on the estimated budget effects of the "Heartland, Habitat, Harvest and Horticulutre Act of 2007"