Substantial Risk of Forfeiture Questions

[Guest cphcs]

1. A January 2008 article in BNA Compensation Planning Journal (Richey/Hopkins/Boekeloo) stated that, under Notice 2007-62, forfeiture due to

(i) involuntary termination for reasonable cause, or

(ii) voluntary termination

would not constitute substantial risks of forfeiture. In their view, the only thing that clearly works under 2007-62 is involuntary termination without reasonable cause.

Is that a consensus view? It's not clear to me that 2007-62 and the 409A reg definition of SROF go that far, and the focus was instead on clarifying that rolling risks of forfeiture, non-competes and deferral plans don't work.

I may just be reading this incorrectly. Any thoughts?

2. Any word on when IRS will get 457(f) SROF regulations out? Seems like many 457(f) plans that rely on short term deferral exception from 409A will need to be amended by 12/31/08 to avoid 409A, so prompt issuance of regs is necessary so employers know what they'll need to do.

Thanks