Final 457(f) Regulations Unlikely to be Released this Year?

Last week Ilya Enkishev, an attorney from the IRS Office of Associate Chief Counsel, said it would be “incredibly optimistic” to think the final 457(f) regulations will be out this year. According to Enkishev, the IRS working group has struggled to reach a consensus on the terms of the safe harbor for bona fide paid leave plans. The IRS is also preparing final 409A regulations that it hopes to publish in tandem with the 457(f) regulations, making publication in 2017 less likely.

The final regulations become binding on January 1 of the year following publication. This means that effected organizations may well have at least one more year to prepare before the new rules take effect.