IRS To Correct “Minor Errors” in 409A with 457(f) Regulations
December 1st, 2011 by JBWK
BNA reports that IRS officials have acknowledged they will fix some “minor errors” in section 409A regulations (addressing deferred compensation) through its upcoming section 457(f) regulations.
457(f) governs the taxation of nonqualified deferred compensation plans of government and tax-exempt entities. The IRS has repeatedly announced its intention to issue more onerous regulations on 457(f) plans, but has yet to do so. Be on the lookout for them early next year.
It also said it will take that opportunity to address some minor technical errors in the 409A regulations issued in 2007. None should be substantive; they should only clarify some outstanding issues, such as sections that cite inaccurate sections of the Internal Revenue Code.
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