457(f)

[Randy Watson]

Would a provision in a 457(f) plan that allows a participant to change the payment/vesting date result in a lapse of the substantial risk of forfeiture?

[QDROphile]

Looks like it would violate 409A.

[Randy Watson]

Assume the participant satisifies the requirements under 409A for changing the distribution date (makes the change 12 months prior, delays for 5 years etc...). Can you do that under 457(f)? Can the participant push the vesting date out under 457(f)?

[Everett Moreland]

This is often referred to as a rolling risk of forfeiture. The IRS comments summarized at the following Web page indicate that the IRS has a regulations project in the works on this.

http://hr.cch.com/news/pension/091906a.asp