Farm Bill postponed; Future of New Roth 457
Arrangements in 457 Plans Still Uncertain

Section 12512 of the Farm Bill, which is “Participants in government section 457 plans allowed to treat elective deferrals as Roth contributions” states as follows:

1. In General. Section 402A(e)(1) (defining applicable retirement plan) is amended by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by adding at the end the following:

   "(C) an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”.

2. Elective Deferrals. Section 402A(e)(2) (defining elective deferral) is amended to read as follows:

   "(2) Elective Deferral. The term “elective deferral” means -
   "(A) any elective deferral described in sub-paragraph (A) or (C) of section 402(g)(3), and
   "(B) any elective deferral of compensation by an individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”.

3. Effective Date. The amendments made by this section shall apply to taxable years beginning after December 31, 2007.