• Interim Relief for Federal Credit Union §457 Plans
  • August 19, 2005
  • Law Firm: Sutherland Asbill & Brennan LLP - Washington Office
  • In Notice 2005-58, the Internal Revenue Service provided, pending further guidance, relief for section 457 plans maintained by federal credit unions. The status of those plans had been called into question by PLR 200430013, which ruled that, as an instrumentality of the federal government, a federal credit union was not an "eligible employer" under section 457(e)(1) and its nonqualified deferred compensation plan was not a section 457(b) "eligible plan." Under section 457(e)(1)(A), only instrumentalities of state and local governments may be "eligible employers."