Are plan sponsors amending their 457(f) plans now or waiting for issuance of regulations? Eliminating deferrals? Eliminating noncompetes? Adding materially greater benefits?

I imagine that if a sponsor (or the sposor' advisers) were on the edge or ove the line on the law before enactment of section 409A they will do the same under the 409A regime. But flauting the law now is even worse than flauting it then.

457f Scoflaws beware! 409A is a bigger hammer.

See IRS Notice 2007-62. IRS will issue 457(f) regs but they will be substantially similar to 409A regs. One major difference to look for is the definitions of a "substantial risk of forfeiture." There was some discussion in the notice that the definition for SRF in the 409A regs may not be applicable to eligible 457 entities and that the 457(f) regs should therefore not include the same definition.