SECTION 4. LIMITATIONS ON

ISSUANCE OF § 457(b) RULINGS

.01 The Service will not issue a new private letter ruling concerning a § 457(b) plan that has previously received a private letter ruling if that plan is amended solely to conform it to the SBJPA changes by adding one or more of the model amendments contained in Revenue Procedure 98–41 (and to replace obsolete terms or delete provisions inconsistent with the model amendments so adopted). However, the Service will consider a private letter ruling request for a pre-existing § 457(b) plan even though the employer had previously received a favorable private letter ruling, if the employer has made amendments to its § 457(b) plan after it had received that ruling (other than adoption of model amendments and conforming changes). For example, the Service will consider a private letter ruling request from a plan sponsor that had received a favorable ruling in 1984 regarding its § 457(b) plan, and that has since amended that plan to conform with changes in the law, such as amendments made to conform with the Tax Reform Act of 1986.

.02 The Service will issue a private letter ruling concerning a § 457(b) plan maintained by a state or local government employer only if the plan includes provisions reflecting § 457(g), including the guidance provided in Sections VI, VII, or VIII of Notice 98–8. Model Amendment 4 of Revenue Procedure 98–41 may be used for this purpose.

.03 The Service will not issue a private letter ruling for a § 457 plan if the plan provides that a loan may be made from assets held by the plan to any participants or beneficiaries under the plan.