Guidance on Section 457(f) Plans in Clearance, IRS Official Says

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Guidance on nonqualified deferred compensation plans under tax code Section 457(f) is in the clearance process at the Treasury Department and IRS and might be released by September, Cheryl Press, senior legal counsel in IRS's Office of Chief Counsel, says. The Section 457(f) guidance will cover various nonqualified plans, including severance and vacation pay plans, whose salary deferral limits exceed the $16,500 or $22,500 catch-up limits of tax code Section 457 plans, she says. Section 457(f) plans are nonqualified deferred compensation plans maintained by state and local governments and tax-exempt entities.