# Prop. Treas. Reg. § 1.457-9: Effect on eligible plans when not administered in accordance with eligibility requirements.

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. 7. Section 1.457-9 is amended by revising the third sentence of paragraph (a) and the last sentence of paragraph (b) to read as follows:

(a) * * * If a plan ceases to be an eligible governmental plan, amounts subsequently deferred by participants are includible in gross income when deferred, or, if later, when the amounts deferred first cease to be subject to a substantial risk of forfeiture, under the rules described in § 1.457-12(e). * * *

(b) * * * See § 1.457-12 for rules regarding the treatment of an ineligible plan.