SECTION 5. EFFECT ON REVENUE

PROCEDURE 98–3

.01 The first sentence of Section 5.19 of Revenue Procedure 98–3 (barring rulings regarding the tax effects of the SBJPA affecting § 457(b) plans) is modified to read as follows: The tax effect of provisions under the Small Business Job Protection Act affecting plans described in § 457(b) if such provisions do not com

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ply with Section 4 of Revenue Procedure 98–40. .02 The second sentence of Section 5.19 of Revenue Procedure 98–3 (authorizing advance rulings on § 457(b) plans based on the law in effect prior to enactment of the SBJPA) is deleted.

.03 Revenue Procedure 98–3 is amplified by adding to Section 5 the following: Section 457. Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations. The tax treatment of any § 457 plan that provides that a loan may be made from assets held by such plan to any participants or beneficiaries under the plan.