Bulletin No. 2016–28 July 11, 2016

REG–147196–07, page 32. Section 457 of the Internal Revenue Code applies to compensation deferred under plans established and maintained by State or local governments or other tax exempt organizations. The proposed regulations include rules for determining when amounts deferred under these plans are includible in income, the amounts that are includible in income, and the types of plans that are not subject to these rules. The proposed regulations would affect participants, beneficiaries, sponsors, and administrators of certain plans sponsored by State or local governments or tax-exempt organizations that provide for a deferral of compensation.