Making Payment to terminated vested 457(f) paticipants

[Guest bsnipes]

HELP!!!!!!!!!

I have a situation whereI need to coordinate payout of vested 457(f) funds to a terminated participant.

What I need to know is... who pays the plan Trustee or the employer?

Basically, is it up to the employer's desgression or must it be one way or the other?

Need an answer yesterday

[mbozek]

You should check with the employer's accountants to confirm that the payments under the 457(f) plan are deemed wages paid by the employer in the year the employee is vested in the deferrals. If the payments were vested in a prior year (e.g., because the employee terminated in that year) but are being paid out this year then only the earnings on the vested deferrals are to be taxed as this years wages. I dont understand the reference to trustee.