Section 457 to Be Updated: Long-Awaited Proposed Regulations Are Issued.

After a 9-year wait, the IRS has finally issued proposed regulations under Section 457 of the Internal Revenue Code. These proposed regulations bring the current regulations up to date with respect to statutory changes made to Section 457 since 2003. More importantly, the proposed regulations provide new guidance under Section 457(f) so that it can be reconciled with the regulations finalized under Section 409A in 2007. Although the proposed regulations may appear to provide new design opportunities for tax-exempt employers, upon further analysis, the utility of these new design opportunities is somewhat limited. [ABSTRACT FROM AUTHOR]