Every year, Congress creates and passes the 13 appropriation bills which fund the entire government for the upcoming year. Tucked inside those appropriation bills are more than just government spending provisions.
This year, a provision about to be included within one of the appropriations bills, is the American Infrastructure Investment and Improvement Act. Included within this provision is authorization to permit 457(b) plans to include a qualified Roth contribution program, effective for taxable years beginning after December 31, 2007. Under such a program, participants would be permitted to designate elective deferrals as Roth contributions.
457(b) plans are maintained by State or local governments, or tax-exempt organizations and which meet certain requirements, such as limits on the maximum amounts which can be deferred.
The Joint Committee on Taxation prepared a short summary of the provision in the Markup to the Senate Finance Committee of the Chairman’s Modification to this bill.
[tags]Pension Protection Act, ppa, 457(b), roth, American Infrastructure, appropriations, ERISA[/tags]
