457(f) Plan states that payments will be made over a period of years. As of 2009, there is no longer a substantial risk of forfeiture, and we will report the full amount of the deferred compensation. First payment is due this year.

Former CEO is upset that he must pay tax on full amount now, but only receive payments to which he is entitled per the agreement.

Regs permit acceleration in 457(f) arrangments for purposes of paying taxes. Can we add this provision now? While I cannot find anything that specifically permits this, I cannot find anything that prohibits it. The new correction procedure released this month contemplates fixing a plan with an impermissable acceleration by converting it to a permissible type.

What I am trying to figure out is if I can just add a provision that is permitted by the regs at this point.