# Prop. Treas. Reg. § 1.457-2: Definitions.

Proposed regulation, not in force. REG-147196-07, 81 FR 40548, published 2016-06-22 <https://www.federalregister.gov/documents/2016/06/22/2016-14329/deferred-compensation-plans-of-state-and-local-governments-and-tax-exempt-entities>. Interprets 26 U.S.C. § 457.

Par. 3. Section 1.457-2 is amended by: 1. Revising the introductory text. 2. Revising the second sentence of paragraph (f). 3. Revising the last sentence of paragraph (i). 4. Revising paragraph (k). The revisions read as follows:

This section sets forth the definitions that are used under §§ 1.457-1 through 1.457-12.

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(f) * * * An eligible governmental plan is an eligible plan that is established and maintained by a State as defined in paragraph (l) of this section and that meets the requirements of section 401(a)(37). * * *

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(i) * * * Solely for purposes of section 457 and §§ 1.457-2 through 1.457-12, the term nonelective employer contribution includes employer contributions that would be described in section 401(m) if they were contributions to a qualified plan.

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(k) Plan. Plan includes any agreement, method, program, or other arrangement (including an individual employment agreement) under which the payment of compensation for services rendered to an eligible employer is deferred (whether by salary reduction, nonelective employer contribution, or otherwise). However, the plans described in § 1.457-11 are either not subject to section 457 or are treated as not providing for a deferral of compensation for purposes of section 457, even if the payment of compensation is deferred under the plan.

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